[Cara Reynolds – SUM180 Community Manager]

If you’re going through a major life transition like the birth of a child or a divorce, it really helps to have a supportive network of family and friends. And since these events also have some significant financial implications, sound advice from a financial expert can really help, too.

Check out these money tips for navigating life transitions from the SUM180 team:

New marriage

• To build a healthy relationship, make time for regular conversations about money. As early as possible (i.e. before issues arise), share your history with money; discuss and reconcile your spending habits; and share your expectations and goals for your money. Set aside some time every month (call it a Financial Date Night) to assign money-related tasks, talk about future financial decisions, and review progress toward your goals. Investing time and effort up front to get your joint financial house in order will free you to enjoy your new life together as fully as possible.

Shared by Cordi Powell in Money Myths for Newlyweds: Don’t let these 4 financial misconceptions torpedo your marriage

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Dating someone with a financial past

• Don’t make any financial commitments together while his finances are in bad shape relative to yours. Protect yourself by keeping your banks accounts, credit cards, and other accounts separate from his until he has restored his financial picture. In the meantime, help him develop healthy financial habits by modeling them for him and practicing them together.

Shared by Cordi Powell in You’re in love, but his finances are a mess: How to protect yourself and thrive together

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Losing a Job

• Don’t touch your 401(k). Even if you pay it back later, and it’s important that you do, you’ll pay extra fees and may be hit with an early withdrawal penalty if you fail to repay the loan within a specified period.
• Apply for unemployment as soon as possible. Benefits can take weeks to process, so don’t delay. Most states let you file a claim by phone or online. For state-specific instructions on how to apply for unemployment, visit CareerOneStop.

Shared by Carla Dearing in 3 things to do first to protect your money after being laid off

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Grey divorce

• Don’t insist on keeping the house. At this time, you want to stay flexible and keep your housing costs low (under 40% of your after-tax income). After all, your financial landscape it about to change, perhaps drastically. Ask yourself: Will you have enough future income to maintain the house? Remember, maintaining the house means more than paying the mortgage; it means covering utilities, upkeep, and repairs as well. Once you set aside your emotional attachment to the family home, you may realize that moving to a small condo or rental is best for your peace of mind.

Shared by Carla Dearing in Grey divorce and your money: 5 common pitfalls and how to avoid them and Rent vs Buy: Different rules for divorce

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Approaching retirement

• Boost your retirement portfolio. With your children done with college and out of the house, and your home mortgage paid off, you have significantly more funds to direct into retirement savings. Make this your top priority. Be sure to max out all retirement vehicles available to you. Take advantage of “Catch Up” contributions available through your employer and for your IRA.

• Keep or pay off your mortgage? It depends. Conventional wisdom tells us to pay off our home mortgage before retiring, but if your rate is less than 5% and you can afford to make your mortgage payments from guaranteed-income sources in retirement, you may be better off investing the money you would have put toward the loan.

Shared by Angela Dorsey in Personal finance in your 60s: 7 steps to prepare for retirement in your final years of work

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To read more on each topic, click on the post title above.

Have you gone through a major life transition? What financial lessons did you learn? Please share!