March arrived and we began talking about St. Patrick’s Day traditions. We chuckled about children creating a trap to catch the elusive St. Patrick’s Day leprechaun and the hilarity that ensues.
As we chatted, we realized an article with insights into having children might be timely. Sharing our perspectives on financial considerations when deciding to expand your family. . .
However the stork delivers your bundle of joy, numerous expectations and anxieties may arise. Below are a few thoughts, we would like you to consider to help quell your concerns and address a few financial considerations. These are not intended to add any anxiety, but open communication with your financial planner regarding this new adventure.
Whether you need medical intervention prior to pregnancy, pre- and post-natal care, or medical concerns after your new one arrives, your medical needs will change. Consider what your medical benefits cover in all phases of this process. A few questions to ask:
Adoption has its own financial considerations. Up-front costs, professional service fees, agency fees, and travel costs may factor into your adoption process. Plan for these expenses and also look at the impact of adoption tax credits on your taxes.
How close are you to retirement? How close is your spouse to retirement? Sometimes having children is something we do later in life. Consider how this will impact your retirement plans and savings?
We constantly hear about the expense of college. What are your education plans for children? Will elementary and middle school be public or private? How about high school? Is college attendance a potential? A 529 Plan might provide a foundation for education that you want.
What impact will maternity/paternity leave have on your household income? How many weeks of leave do each of you receive? How will they impact your household budget?
Will someone be changing their career to accommodate parenting? Have you checked into the cost of daycare? A nanny? Part-time work? How will your household finances be affected?
As your family expands, consider the importance of an estate plan (i.e. will, trust, powers of attorney) and life insurance? We understand you want to protect your family and these are instruments to help do that.
As your financial planning support, our biggest encouragement is for you and your significant other to communicate with us so you can be confident in your financial circumstance as you journey into this exciting time of life.
Family Legacy Wealth Partners is not a registered broker/dealer, and is independent of Raymond James Financial Services. Securities are offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment Advisory Services are offered through Raymond James Financial Services Advisors, Inc.
The information herein is general in nature and should not be considered legal or tax advice. Consult a qualified tax professional regarding your specific situation.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of The Family Legacy Wealth Partners Team and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Raymond James is not affiliated with the mentioned organizations.
