As parents, we bear the great duty of raising our children to be strong, independent, and better versions of ourselves. This responsibility comes with many financial obligations to balance for the goal of setting them up for success and protecting their future. Here are a few critical objectives to consider:
- Create a will. The will allows you and your spouse to make an informed decision about who should look after your children and how assets should be distributed upon your deaths.
- Purchase life insurance. Insurance is valuable in enabling your loved ones to maintain their lifestyle in the absence of your earning power.
- Update your health insurance. Having children means revisiting and updating your coverage to ensure that they’re eligible to receive dependent benefits.
- Start a college fund. Parents can open up a 529 college savings plan, which allows them to invest money towards their child’s educational expenses. However, keep in mind to not put this ahead of your own retirement savings goals. Remember–you can borrow for college, but you can’t borrow for retirement.
Being a parent is not only a hard task, but also an expensive endeavor. Being prepared and having a plan in place for your children is important to get your family off on right foot. Questions? Call us and we’ll help you prepare for and navigate the changes in your growing family.
The content within this document is for informational and educational purposes only and does not constitute legal or tax advice. Customers should consult a legal or tax professional regarding their own situation. This document is not an offer to purchase, sell, replace, or exchange any product. Insurance products and any related guarantees are backed by the claims paying ability of an insurance company. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.