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  • Milad Taghehchian, CPA, CFP(R)

The New Parents’ Guide to Life Planning

Today's post will be by guest writer, Jackie Waters. Jackie lives on a three acre hobby farm in Oregon along with her family. She prides herself in raising 4 energetic boys and still find the time to be Hyper-tidy.

The emotions of becoming a new parent can be quite the rollercoaster ride. Excitement. Fear. Wonder. Hope. All of these feelings are completely appropriate and normal if this is your first experience on the journey of parenthood. A lot of first time parents pressure themselves with the idea of “getting it all right” on their first go around. But if you have taken heed to any advice that has been around from parents past, it is that no one will ever be the perfect parent. The only thing you can do is give your best effort and try to raise an upstanding human being. Wanting what’s best for your child is absolutely admirable and taking control of your financial security is one of the best ways to do so. Use this guide to assist you in planning ahead for the future of your family. Make sure your child has the proper health insurance Health insurance is a vital factor in the well being of your child. Throughout their lives, there will be several incidents that my not be foreseen, however you want to make sure you have the proper precautions in place. Doctor visits will make up a huge portion of your child’s life, especially in the early years. As they grow older and childcare outside of the home is set into place, they are subject to be around more airborne illnesses and viruses. Having the correct health insurance plan will cut down on the expenses involved with health care. Working parents have the ability to place the child under their existing coverage, while other parents pay out of pocket for insurance. Whichever may be your case, you will want to be sure that your child has the best policy within your means. Have a life insurance policy in place Having a life insurance policy is a step in the right direction to ensure the protection of your family should something happen to you (an estate plan isn’t a bad idea either). Having a policy in effect will dissolve the financial burden that may strike your family should you or your spouse pass away unexpectedly. There are two main types of coverages to consider; Whole Life Insurance and Term Insurance. Whole Life insurance will cover the insured the span of their lifetime, offering a payout to the beneficiary at the time of death. A term life insurance plan covers one for a select period, or term of their life. Should the insured pass way before the term of the policy expires, all benefits will go to the beneficiary. Should life go beyond the set term of the policy, no benefits will be made available. At that point, an option would be to seek opening another policy. Save, save, save One common thread about children is that they are expensive. The older they become, there will be more unforeseen or surprise expenses that will come into play. Plan ahead for the cost of childcare, extra curricular activities and college funding. Having the proper savings arrangements in force will lessen the blow of being caught off guard by the expenses that come along with being a parent. Consider savings through your bank, retirement plans and 529 Plans for college. Parenting is an awesome experience that many wouldn’t trade for the world. While you cannot plan every step along the way, nor can you see what will unfold in the future, you can make sure that you are well equipped to deal with life as it arrives. Start planning for the security of your family now and your future self will indeed thank you down the line. Photo By Pixabay ​Disclaimer: This publication has been distributed for educational purposes only and should not be considered as investment or insurance advice or a recommendation of any particular security, strategy, insurance product or investment product. Please speak with a qualified financial professional to address your specific financial needs.

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