Life transitions can be happy, difficult and emotional. Such feelings can make us neglect to consider the serious financial implications of a major life change.

The key to preventing unexpected financial consequences is to have a team of advisors that you trust. The right team can serve as your partner in designing a plan that meets your needs today, while retaining flexibility for life’s inevitable changes.

If you would like to talk through a current or upcoming life transition, use the contact form to contact us or call us at (717) 761-7171.

Common Issues with Major Life Changes

So, what are some of the most common life changes and key issues that come with them?

When retiring:

  • You may find that high inflation and low interest rates have increased the difficulty of designing a lower-risk portfolio for new retirees.
  • You will need to withdraw from your various taxable, tax-deferred (IRA) and tax-exempt (Roth IRA) accounts in proper sequence in order to minimize your tax liability.
  • Timely Roth IRA conversions can substantially reduce tax payments made by you or your beneficiaries.

If you sell your business:

  • The comfort of holding a large cash position should be weighed against the life t merits of investing a portion of it in order to maintain your long-term purchasing power.
  • Retired business owners should be wary of managing portfolios as actively as they did their business. A “hands-on” approach can result in imbalanced exposures and/or high portfolio turnover, creating unnecessary tax costs.

If you just received an inheritance:

  • Regardless of estate size, Pennsylvania requires all executors / administrators to file an inheritance tax return within nine months of the date of death.
  • Pennsylvania inheritance tax and federal distribution rules vary for inherited IRA’s, depending on the decedent’s age at death and whether required minimum distributions had already commenced.

About Us

Lighthouse Wealth Management is a fee-only wealth advisory firm offering asset management, financial planning and tax and estate planning services to clients. Views about money and risk vary as much as personalities, and we honor those convictions in every interaction. We provide our clients with highly personalized solutions, focused on your distinctive circumstances, interests, and goals.

We partner with Brown Schultz Sheridan & Fritz, a premier tax accounting and advisory firm in Pennsylvania and Maryland, to provide a comprehensive financial service offering to individuals, families and business owners across the Mid-Atlantic region.