It's a scary feeling.  You've planned carefully, saved appropriately, invested thoughtfully, and are on track to retire.  Then you are met with a significant and unexpected financial challenge.  Let's take a look at two unexpected events that can be made easier by having the framework of a Lifestyle Wealth Plan in place.

Threat No. 1: JOB LOSS

To minimize this retirement disruption and prevent having to tap savings or take on more debt, it is important to have several months of living expenses set aside in a savings account.  If you're married and your spouse works, you may decide jointly that it makes sense for them to work a bit longer to help replace the lost income. 

If you do plan to return to work after a job loss or taking a leave to deal with medical issues, be realistic about those prospects and keep a flexible mindset.  You may need to be open to accepting a position that isn't at the same level as your previous role and may not pay as well, which ultimately may mean working later in life than you had initially planned.  Those who are unable to secure another position may need to consider reducing expenses such as downsizing to a smaller home or moving to a less expensive area.

Threat No. 2: GETTING A DIVORCE

A late-life divorce can be devastating from a financial perspective and there is very little that can be done to prepare for it.  Divorce generally cuts assets right down the middle while nearly doubling expenses.

It's important not to waste any time in rewriting your Lifestyle Wealth Plan and getting back on track.  Align yourself with a team of experts you trust including an attorney and financial advisor who can help who can help you traverse the complex decisions you will face.  You will want to take advantage of catch-up contributions in 401(k) and individual retirement accounts that allow those over age 50 to save more.  If you were married longer than 10 years and didn't remarry, consider applying for 50 percent of your ex-spouse's Social Security benefit at your full retirement age if it is larger than your own.

The common thread to both of these scenarios is the importance of developing a Lifestyle Wealth Plan that can help mitigate the damage of any threats.  While you can't plan for every contingency, you'll sleep better knowing you have a solid plan in place that can be adjusted when life throws you an unexpected curveball.