As young parents, it is very important to
have a financial plan. Here is a quick checklist to prepare for the potential
opportunities and challenges ahead.
Update Beneficiary Info: Add or update information for your spouse and
children to your IRA, 401(k), Life Insurance, Annuities, “in trust for”
accounts. Instructions in a Will or Trust do not override beneficiary accounts.
Apply for or Increase Life Insurance Policies: Meant to provide short and long-term financial
security to your family. Life insurance can help pay bills while your spouse
deals with the situation and then fund future expenses such as college and a
mortgage. We can help you determine the amount of insurance you need and
evaluate different insurance companies. We do not sell insurance or receive
commissions.
Contribute to Retirement Accounts: Your 70s will come up faster than you know!
Regularly add to an IRA or company plan to avoid being a burden on others and
ensure you can live comfortably in retirement. Put contributions at the top of your budget!
Start a 529 College Savings Plan: On average, college costs double every 9 years! 529s
are a tax-free account and they can help you stay ahead of those rising costs
by investing in stock and bond mutual funds. Another plus is the beneficiary
can be changed giving you the flexibility to pay for multiple children’s
college expenses.
Will: A
Last Will & Testament will provide a “Guardianship Plan”, Trustees for
testamentary trusts, and who receives your assets. A Will dictates your wishes instead
of the courts and can help limit family disputes.
Trusts: Testamentary
Trusts dictate when, where and how your children receive money or assets. This
can help your children avoid the pitfalls of sudden wealth. Trust assets are neither
subject to probate nor disclosure to the public.
Health Care Directive: Names someone as your agent to make medical
decisions for you instead of the courts appointing someone. Only becomes
effective if you are unable to make medical decisions for yourself.
Durable Power of Attorney: Names someone as your agent or attorney in fact to
make business or financial decisions for you. Powers given to the agent can be
very broad or very limited depending on what you specify.
