Life has a funny way of throwing curveballs at our finances. One day you’re single and saving diligently, and the next you’re married, buying a house, or welcoming a baby, or maybe even all three at once. Between midnight bottle feedings and home inspections, it’s difficult to pay attention to your investment accounts or financial plans. In fact, we’re all apparently so busy that only about 30% of people with a 401(k) or IRA say they never rebalance their retirement accounts, and that figure jumps to one-third for folks in their prime working years. In other words, many of us cruise through major life changes without adjusting our portfolios.
So let’s discuss some of life’s big transitions and talk about how each might warrant a portfolio rebalance or overall strategy rethink.
Marriage: Combining Lives, Combining Finances
Getting married is a huge life milestone – emotionally and financially. When you tie the knot, you aren’t just merging Netflix watchlists; you’re potentially merging finances, too. Suddenly it’s “our money” and “our goals,” not just “mine” or “yours.” Even if you keep separate bank accounts, your lives are intertwined. So how should your portfolio respond?
First, talk to your spouse about money. It’s critical to understand each other’s financial habits, debts, and dreams. Are you both savers, or is one a spender? Is your spouse’s risk tolerance the same as yours, or do they get heartburn from stock market swings? These questions matter because your combined asset allocation should reflect both of you as a unit. For example, maybe as a single person, you invested very aggressively. But your partner’s portfolio was more conservative. As a married couple, you might choose to meet in the middle, balancing growth with stability in a way that lets you both sleep at night.
Rebalancing after marriage could mean a few concrete things: you might consolidate duplicate investment accounts, rebalance to avoid over-concentration (if you both owned a lot of the same tech stock, now together you’re really overweight in it), and adjust contributions to reach shared goals. For instance, if you’re now saving for a down payment on a house together, you might shift some money into safer or more liquid investments for that shorter-term goal, while keeping retirement accounts geared toward growth.
Marriage money to do list
A shared checklist for new life together with accounts and allocation in sync
You may also need to rebalance how much is in taxable vs. retirement accounts, or update beneficiaries on accounts. And don’t forget insurance adjustments – marriage is a good time to evaluate life insurance or disability coverage to protect each other.
One more thing I’ve seen with newlyweds: sometimes one partner brings a hefty 401(k) or portfolio into the marriage while the other has less. There’s no one-size-fits-all answer to investing together; some couples pool everything, others keep investments separate. But at minimum, coordinate your strategies. You could decide, for example, to treat all your investments as one big family portfolio and rebalance across the whole. That way, you avoid, say, both of you maxing out on the same growth fund while neglecting other areas.
Becoming a Parent: New Responsibilities, New Priorities
If marriage changes your finances, having a child is a financial earthquake. Suddenly, your budgeting app has new categories and your future goals multiply (hello, college tuition). With all these changes, your portfolio likely needs a post-baby makeover.
New parent money checklist
Practical steps to steady the plan while life gets louder
First moves after baby arrives
Rebalancing is often neglected
Share of savers who say they never rebalance
About one third report never rebalancing retirement accounts
Source Vision Retirement 2025
Bringing a child into the world often calls for dialing back risk a bit and shoring up your safety nets. Now that you have a little person depending on you, you might have less flexibility to weather big financial losses. Practically speaking, new parents might rebalance by increasing bond or cash allocations for stability, and by carving out investment streams for specific goals (like a 529 college savings plan).
For example, maybe you were 90% in stocks when you were 25 and carefree. By the time Junior comes along, you might decide that 70% stocks/30% bonds is more appropriate for your now family-focused risk tolerance.
Another often-overlooked tool at this stage is opening a custodial Roth IRA for your child. As soon as they have earned income from a job or self-employment (think babysitting, mowing lawns, or lifeguarding), you can help them start investing. Even small contributions can compound for decades, and a Roth IRA delivers the rare combo of tax-free growth and tax-free withdrawals, aka tax-free freedom. Starting early gives your child a head start on financial independence while teaching the value of saving and investing.
Also, the act of adding a new financial goal (college) is itself a form of rebalancing your broader financial plan. You might start redirecting a chunk of your monthly investing budget into a college fund or other investments earmarked for your child’s future.
Beyond asset allocation, becoming a parent is a good time to review your life insurance and estate plan, too. You want to ensure that if anything happens to you, your family is taken care of.
Empty Nest: Shifting Gears Toward Retirement
Fast forward a couple of decades: the kids who once drained your wallet have flown the coop. Congratulations, you’re an empty nester! This is another pivotal transition, both emotionally and financially. One minute you’re wondering how to pay for braces and summer camp, and the next you’re staring at a quiet house – and possibly a healthier bank balance.
So, what should your portfolio look like at this juncture? A lot depends on how prepared you already are for retirement. Broadly speaking, the empty nest stage (typically your 50s, give or take) is a time when your investment strategy may tilt from aggressive growth toward preservation and income. You’ve hopefully accumulated a nice nest egg by now; the goal is to protect it and make it work for you in retirement.
Empty nest portfolio shift
Tilt from growth toward preservation and income while keeping long term goals in view
Hypothetical asset allocation over time
Illustrative only not advice
Moves that fit the empty nest years
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Shift toward preservation and income Dial down equity risk and add steady cash flow
During the empty nest years, you might also find you have new financial freedom, so now’s your chance to max out those 401(k)s and IRAs if you weren’t already – remember, from age 50 onwards you can make catch-up contributions (extra amounts the IRS lets you put into retirement accounts).
Sudden Windfall: Make It Count
Not all life transitions are on a predictable timeline. Sometimes, life hands you a sudden windfall – say, an inheritance from a relative, a lump sum from selling your business, or even a legal settlement. Windfalls can be a blessing, but they can also derail folks who aren’t prepared.
First off, take a deep breath. If you suddenly come into a large sum, the best initial move is usually nothing. That’s right – park the money in a safe place (like a bank or money market fund), and give yourself time to process. Avoid the instinct to make drastic investment moves or extravagant purchases in the first week. Once the dust settles, then it’s time to formulate a plan. This often includes rebalancing your existing portfolio and deciding how to deploy the new funds.
Does this windfall significantly change your life goals or timeline? For example, if you sell your business for a cool million or get a sizeable inheritance, you might suddenly be able to retire earlier than expected, or pay off your mortgage, or fund your kids’ education outright. Your financial targets might shift, which means your investment strategy shifts too. You may no longer need to take as much risk to reach your goals – or you might choose to invest part of the windfall more aggressively for a new goal, like philanthropy or a venture investment. In any case, your old asset allocation probably isn’t optimal for your new net worth. It’s time to rebalance the whole pie.
Windfall rebalancing checklist
A calm sequence that protects the win and aligns it with long term goals
One more thought: a windfall can also trigger lifestyle changes, which in turn affect your finances. If you suddenly feel flush, you might upgrade your lifestyle – new house, fancy car, more travel. Nothing wrong with enjoying the money, but integrate these choices into a sustainable financial plan. When done right, a windfall can significantly improve your financial security. When done rashly, it can become just a bittersweet memory. Let’s aim for the former.
Conclusion: Embrace the Change (And Check Your Portfolio!)
Life transitions are a package deal – they come with excitement, challenges, and yes, financial shifts. It’s easy to put your portfolio on the back burner when you’re in the throes of a big life change. But a little time spent rebalancing and realigning your investments with your new reality can pay off in peace of mind (and potentially in dollars down the road). Whether you’re walking down the aisle, walking the halls with a newborn, watching your last kid leave for college, or walking into newfound wealth, don’t let your portfolio get stuck in the past. Change is the only constant, so embrace it, and make sure your money is marching in step with you.
If you’re thinking it’s time to give your portfolio a life-change checkup, make an appointment with me by clicking the button below. Let’s talk about where you’re at, where you want to go, and how to adjust your financial sails to catch the new winds in your life. I look forward to chatting with you soon!
Appendix:
- Vision Retirement – “Rebalancing Your Investment Portfolio: Why, How, and When.” (Jun 23, 2025). https://www.visionretirement.com/articles/investing/rebalancing-your-investment-portfolio
- Investopedia – “How to Rebalance Your Portfolio to Minimize Risk.” (Emily DiNuzzo, updated Sep 13, 2023) – see quote from David Rae, CFP®. https://www.investopedia.com/how-to-rebalance-portfolio-to-minimize-risk-11740292
- Fidelity Viewpoints – “Give your portfolio a checkup.” (June 09, 2025). https://www.fidelity.com/viewpoints/investing-ideas/portfolio-checkup
- U.S. Bank – “When to Rebalance Your Portfolio.” (2022, U.S. Bank editorial). https://www.usbank.com/investing/financial-perspectives/investing-insights/when-to-rebalance-your-portfolio.html
