New Moms and Dads: A Roadmap to Future Financial Security

One of the services we provide for many of our clients is a conversation on insurance as a way of providing future financial security. We’re talking to new moms and dads, young couples that are just starting their families, or families that are expanding.

An Important List for New Parents

I’m a seasoned veteran with several children. But for a new couple, there are several important points that you might want to keep in mind.

  1. Your will. You’re going to want a consultation or a visit with an attorney to create a will. If you have children, the naming of guardianship for those children is really, really important. So you want to make a visit with an attorney to create a will.
  2. Plans for your children’s education. This is important to your family. Whether it’s a private school or even for secondary education or advanced degrees, starting a 529 college plan or a savings plan would be a very good idea. Start putting $25, $50, $100 a month into that plan. You can change the beneficiaries as needed. It’s very easy to do online. These accounts are very low cost. Those are excellent plans for you to start with.
  3. Preparation for daycare. Start making some plans to set aside funds for this purpose. You want to ask your employer, “Do you have a Section 125 or a Cafeteria Plan?” so that you can save for some of those daycare expenses. The key is that you need to start formulating a plan. Do you want to use family or friends for daycare? Or will one spouse quit their job? It is a major topic that you will encounter very quickly.
  4. Life insurance. For the both of you, no matter what age you’re starting at, you should have a life insurance plan. If you’re anticipating owning a home and having children, acquiring a life insurance policy of $200,000, $300,000 or $500,000 is very simple and very inexpensive.
  5. Health insurance. You’re going to need to know how to coordinate your health insurance between your employers, assuming you’re a dual-income household. What are your health insurance options? When children start coming, which of those options will be best for you? 

Meeting with an agent such as ourselves is a vital step in making all these arrangements. We would be happy to guide you through the decisions you need to make. I would encourage you to have those conversations before you’re faced with the arrival of children and their financial needs. Call us to get the right answers for your situation. We hope to hear from you soon. Call (314) 544-5400 to get out help.

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