New parent checklist.

January 22, 2016

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Hi New Parents, First off- Congratulations! We have clients, family and friends asking us all the time what they need to do now that they’re parents. It is overwhelming enough caring for a new baby, so the nuances of financial planning as it relates to a new baby are often overlooked.

We’ve created a checklist of important steps to make sure you stay on track.

Start with a Plan.

A Financial Plan is critical to successfully achieving your goals. Any successful venture requires a proper plan be in place for structure and guidance. It is no different for individuals and families looking to secure and protect their financial future and send their children to college. Learn more about financial planning

A living will and/or trust.

If you have young children, the selection of a guardian in the unlikely event you can’t raise your kids will give you the peace of mind that they will be well cared for in the manner you desire. If you do not create a will and name a guardian, there could be a court fight if both parents die while the child is a minor. The Court, not you or a relative, would choose a guardian based on the evidence of what’s in the best interests of your child. A Trust is useful for those who have Assets (such as Property) and wish to pass those down upon their death without having to go through Probate.

Create a budget and start saving.

Now that you have a plan and protection in place, you need to allocate a budget to properly save for each component of the plan. This gives you a visual model as well as providing accountability.

Safety net/emergency fund.

An emergency fund is for those unexpected events in life that you can’t plan for, like the loss of a job, an unexpected pregnancy, or a faulty car transmission. It’s not a matter of if these events will happen. It’s simply a matter of when.

College savings vs life savings for your child/children.

Review all options available to you to see which is best suited to your child and your ability to fund it. There are traditional and creative options out there, so take your time to make an informed decision. Learn more about kids savings accounts

Health insurance for your child/children.

Have you compared Health Insurance Costs for your Child? Enrolling your child in their own Health Insurance policy can relate to a tremendous savings versus having them covered under your Employer Based Group Coverage. The costs could be more than twice as much per month at your place of employment.

Debt & cash-flow management.

Part of a financial plan is to make sure you are able to remedy any excessive debts or liabilities in order to fund and achieve your goals. There should be a proper plan in place outlining how these debts can be paid down over time and which ones to pay off first.

Retirement savings (401k and IRA).

You cannot forget about yourself and arguably the largest investment you will ever make, your retirement. There are options outside of your retirement account that can be done to achieve financial security during your Golden Years. Special analysis is required in order to make sure you are on track with your goals.
Learn more about our retirement services

Get organized.

Now that you have sufficiently protected your yourself and set in place a plan and budget, you should organize your financial life with your own digital financial portal. Stay connected to your finances and goals. Learn more about our client dashboard


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