Financial Planning for Major Life Events

Life is full of significant moments—buying a home, starting a family, sending kids to college, or planning for retirement. These major life events often bring exciting opportunities, but they also come with financial challenges that require careful planning. At Discovery FCU, we’re committed to helping you navigate these milestones with confidence and financial security. Whether you’re anticipating a big life change or adapting to a new chapter, solid financial planning will help you stay in control and reach your goals.

Why Financial Planning Matters for Life’s Big Moments

Each major life event has a unique impact on your finances. Having a solid financial plan ensures that you’re prepared for both expected and unexpected costs. Planning ahead allows you to manage your money effectively, so you’re not blindsided by the financial demands that often accompany life’s milestones. When you plan, you reduce stress and create financial stability, enabling you to focus on enjoying these exciting moments.

Major Life Events That Require Financial Planning

Let’s take a closer look at some common life events that benefit from careful financial planning and the steps you can take to manage each one wisely.

1. Buying a Home. Purchasing a home is one of the biggest financial commitments you’ll make. To prepare, start by:

• Saving for a Down Payment: Aim to save at least 20% of the home’s purchase price to avoid private mortgage insurance (PMI) and secure better loan terms.
• Assessing Your Budget: Make sure your monthly mortgage payment fits comfortably within your budget. Remember to account for other homeownership costs, such as property taxes, insurance, maintenance, and utilities.
• Get Pre-Approved: A mortgage pre-approval gives you a clear understanding of how much home you can afford and strengthens your position with sellers. At Discovery Federal Credit Union, we offer fixed-rate mortgages, adjustable-rate mortgages, FHA and VA options, and more to fit your home-buying needs.
• Building an Emergency Fund: Homeownership comes with unexpected expenses—whether it’s a leaky roof or a broken appliance. Having a healthy emergency fund will help you manage these costs.

1. Starting a Family. Expanding your family is an exciting time, but it also comes with added financial responsibilities. Here’s how to plan:

• Budget for Childcare and Medical Expenses: Start by estimating the costs of prenatal care, childbirth, and ongoing childcare expenses. Health insurance and flexible spending accounts (FSAs) can help reduce some of these costs.
• Build a Safety Net: Consider increasing your emergency fund to account for the additional family members and any unforeseen costs. A solid savings cushion can make the transition to parenthood less stressful.
• Plan for Education: While Discovery FCU does not offer 529 plans, it’s important to start saving for your child’s future education expenses. Consider setting up Money Market Accounts or Share Certificates to grow your savings.

1. Paying for College. Education is a major investment, and planning ahead will help you manage the costs without taking on unnecessary debt. Steps to prepare include:

• Apply for Financial Aid: Make sure to explore scholarships, grants, and federal financial aid programs (FAFSA) to help reduce out-of-pocket costs.
• Consider Private Student Loans: If your savings and federal aid don’t cover all expenses, look into private student loans from Discovery for competitive rates and flexible repayment options.

1. Getting Married. Marriage brings both emotional and financial changes. Planning ahead ensures you and your partner are on the same page about finances. Consider these steps:

• Set Joint Financial Goals: Discuss your long-term financial goals as a couple, including saving for a home, retirement, or other big-ticket items.
• Create a Budget Together: Combining finances requires open communication and planning. Create a budget that accounts for both of your incomes, expenses, and financial goals.
• Update Important Documents: After getting married, update key documents such as insurance policies, beneficiaries on retirement accounts, and wills. Discovery FCU offers estate planning services to help you protect your assets.

1. Planning for Retirement. Retirement is one of the most important life events to plan for, and the earlier you start, the better. To ensure you’re ready, follow these steps:

• Save Consistently: Maximize contributions to your 401(k) or IRA accounts. Consider increasing your savings rate over time to build a healthy nest egg. Discovery FCU offers a range of retirement savings products to help you plan for the future.
• Estimate Retirement Costs: Calculate how much you’ll need to maintain your current lifestyle during retirement. Factor in healthcare costs, travel, and any other planned activities.
• Diversify Investments: Ensure your retirement savings are invested in a mix of assets that align with your risk tolerance and timeline. Discovery’s Money Market Accounts and Share Certificates are great options for diversifying your savings.
• Social Security Planning: Understand how and when to claim Social Security benefits to maximize your retirement income.

Financial Planning Tips for Every Life Stage

No matter where you are in life, there are key financial principles that will help you stay on track:

• Build an Emergency Fund: Aim to save three to six months’ worth of living expenses to cover unexpected costs like job loss, medical emergencies, or major home repairs.
• Reduce Debt: Paying off high-interest debt, like credit card balances, frees up your finances and helps you save more for future goals.
• Review Insurance Coverage: Life insurance, disability insurance, and health insurance are critical components of financial planning. Make sure you’re adequately covered in case of unexpected events.

How Discovery Federal Credit Union Can Help

At Discovery Federal Credit Union, we offer a wide range of financial products and services to support you through every stage of your life. Whether you’re buying a home, saving for your child’s education, or planning for retirement, our team is here to provide personalized financial advice and solutions tailored to your needs. We also partner with GreenPath Financial Wellness, offering free financial counseling and resources to help you navigate life’s financial challenges.

Take Charge of Your Financial Future

Whatever life stage you’re in, financial planning is the key to success. At Discovery Federal Credit Union, we’re here to help you build a plan that works for your unique goals and circumstances. Start today by scheduling a financial checkup with one of our experts, or explore our online tools and resources to guide your journey.