Consider the financial implications of changes in your family situation.
June is the month when we typically turn our attention to our family. There may be visits with family, weddings and Father’s day celebrations. This is a good time to consider the financial implications of changes in your family due to marriage, divorce and children.
If you are planning to marry, you want to make sure that as a couple you know the important questions to ask. If you have a new baby on the way, you should talk about the costs of parenthood. According to the U.S. Department of Agriculture,2013, the typical middle income family will spend on average$241,080 to raise a child born in 2012 through age 17, up 23% (in 2012 dollars) since 1960. It is also a good idea to establish the 529 plans and get a buy in from parents or grandparents to contribute regularly.
Unfortunately, divorce is one of life’s unpredictable events that occur in approximately 50% of marriages. Divorce can be a very stressful time but it can be less painful by protecting yourself and understanding the financial implications.
No matter how active your parents are now this may be a good time to address the issue of long-term care planning. It is so important to create a long-term care strategy before the need arises.
Since we are talking about the financial implications of changes in your family situation, this is also a good time to review your beneficiary designations. Your designations should be reviewed once a year on the following accounts:
- Retirement plans (i.e. 401(k), 403(b), IRAs, etc.)
- Insurance policies
- Other investment accounts
- Any other contracts
Enjoy the time you are spending with family but consider the financial implications of changes in your family situation. Schedule a time to meet with your financial planner to make the appropriate updates.