What Is Transition Planning?
Though there’s certainly nothing new about life transition events, what is new is our depth of understanding of what happens to us during these times.
What do all of the following have in common ?
- Major career change
- Sale of a business
- Insurance settlement
- Sudden loss
- Pro Sports contract
- Loss of spouse
- Change in health
All of the above are life transition events. By definition, this means none of them are permanent. Each begins with an ending of a marriage, a financial state, a career, or even a life. Each ends with a new normal. Somewhere in between is what we call passage; the transition from what was to what will be.
Obviously transition means change. When life changes, money changes, and when money changes life changes. But the most important part of managing change isn’t the money. People in transition may gravitate toward the money—the numbers—because they are concrete and easily definable. But in most instances, the numbers are farther down the priority list than people think.
What’s more difficult, is a higher priority, and is what drives most decision making is the human side. The human component—the physical, psychological and social realities of change—is the real challenge, even when you’re attending to it. But when you aren’t attending to it because you are unaware that you should be or you’re unsure about how best to go about it, you’re very likely to compromise your future. When you land after your transition, your new normal can either be a financially and emotionally secure space, or one fraught with obstacles, anxiety and even chronic physical problems, in addition to financial problems.