Financial Planning for an Expanding Family With Erin Sibley
Welcoming a baby to your family is an incredible part of your life that comes with a lot of opportunities for planning.
3 min read
Here are some topics that you and your spouse can discuss that are beneficial when preparing for a growing family.
Evaluate Your Current Financial Situation:
Having the discussion about where you and your spouse’s financial priorities stand is a good first step. Make sure to review your life and disability insurance to ensure that you have adequate coverage if you or your partner are unable to work or pass away.
How Will Having a Baby Affect Your Current Financial Situation?
You will want to make sure that your family is ready for the additional expenses that come along with a new baby. From medical bills to the possibility of needing day care services, adjusting your budget in advance can prepare you.
Contact your current healthcare provider to determine what steps you need to take to cover your new baby.
Establish an Emergency Fund:
If you do not already have an established emergency fund, start one. A general guideline is to build three to six months of household expenses covered.
Create a Will:
It is critical to set aside time to revise or create your will. Meet with an estate planning attorney to help you establish a guardian for your children as well as to direct where your assets will go if something were to happen to you.
It is Never too Early to Plan for the Future:
When discussing the educational future of your children, consider setting up an automatic monthly transfer into a 529 educational saving account. 529 plans can be used for any state’s tuition expenses.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. The Shobe Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., me
Any opinions are those of Erin Sibley and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information being provided does not purport to be a complete description of the securities, markets, or developments referred to in this material, nor is it a recommendation. Investing involves risk and investors may incur a profit or a loss. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
The cost and availability of life insurance depend on factors such as age, health and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Guarantees are based on the claims paying ability of the insurance company. Raymond James and its advisors do not offer legal advice. You should discuss any legal matters with the appropriate professional. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lost money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. Investors should consider, before investing, whether the investor’s or the designated beneficiary’s home state offers any tax or other benefits that are only available for investment in such state’s 529 college savings plan. Such benefits include financial aid, scholarship funds, and protection from creditors. The tax implications can vary significantly from state to state.