Parents with New Kids: What to Know Starting Out
Young parents with new kids – what to know starting out. Here are three quick tips for early financial success as you begin the journey.
Building a family, thinking about budgets, worrying about college funding and protecting your family’s financial well-being may feel a little overwhelming. It is easy to procrastinate and ignore financial matters during this busy period of time. However, don’t forget to do your financial planning especially in the areas of insurance and estate planning.
Financial Tip #1: Assess your Needs
Determine what it is that must be covered in the event of your death, for example the mortgage and other major debt. Decide what would be nice to have covered possibly college expenses for the kids. List your needs and decide what is the appropriate coverage amount and begin to gather quotes so you can analyze the cost of insuring your life. Tough topic but it is important to protect those you love.
Financial Tip #2: Learn about Life Insurance
Take time to learn about the different types of insurance. Do you want whole life or term life insurance? Explore the liquidity and asset protection that life insurance can provide your family in the event of an untimely death. At the very least it would be good to have a plan in place so your family could stay in the home and be debt-free.
Financial Tip #3: Get Your Basic Estate Plans Done
Work with an estate planning attorney to draft some basic documents – wills, living wills, power of attorneys, and guardianship appointments. Sign your documents and inform the key appointees of their roles and responsibilities. Be sure to have your documents and important papers organized in one place and are easy to locate if needed.
As your family grows, your financial responsibilities and decisions will also increase. Plan ahead and continue to solidify your foundation. One of WPC’s core commitments is to guide the next generation in making good financial decisions at every stage from college graduation through retirement.
If you would like to work with a Nex Gen Advisor, Tim Dougherty, CFP® and Noah Sayre, CFP® are available to discuss your financial situation. Read more about our services and investment approach on our website at www.wealthp.com
