My-Financial Plan
Financial Planning as You Start Your Family
|
|
|||||||||
| Who is number 1? | |||||||||
There is a new number one in your life! Now it is really time to get serious about
financial planning. This new level of responsibility means you must take a new look at your employee benefits.
Of course you need health care and perhaps child day care, but you must also look differently at life insurance and disability
insurance needs.
At this cycle of your life the purpose of life insurance is to replace lost wages if one of the bread
winners is gone. The same goes for insurance for disability which is a much more likely occurrence, and one for
which most of us are under-insured.
It
is time to get serious about retirement savings plans but suddenly you are hit with the reality of saving for children's
education expenses.
If you have a seven year old child who you plan to send to a state university
with a low current cost of $20,000 a year, it is already time to be saving $800 a month for the next 11 years just to cover
that cost for one child. The sooner you start the savings plan, the lower your monthly costs.
When starting your family, you should manage the following:
- Review and increase life insurance
- Invest in disability income insurance
- Manage your health care insurance and benefits
- Investigate employer cafeteria plans
- Enroll in health care savings plan
- Do not overlook dental-care insurance
- Keep working on retirement savings
- The sooner you begin to save for children's education, the better prepared you will be
Life Cycle Financial Planning