love, marriage…
and adjust your beneficiaries to ensure all children are accounted for.
FIRST COMES
CREATE OR ADJUST YOUR ESTATE PLAN.
THEN COMES
T
he K-I-S-S-I-N-G song may remind us of our childhood, singing about love, marriage, and babies. While this may be a fun sentiment, as adults, we know that preparation requires planning, such as hiring a wedding planner before you tie the knot. While weddings are mostly regarded as single events, taking care of your children with your life partner can last a lifetime.
As a new parent, sleepless nights and additional responsibilities are inevitable, especially when it comes to changes in your finances. Below are a few tips to help make it less of a financial shock. HEALTHCARE COSTS. Understanding what expenses your health insurance covers will help you determine your maximum out-of-pocket expense. Babies can be expensive; in fact, according to a recent report, the average cost of raising a child from birth through age 17 is nearly
Article provided by the Campbell Hutchinson Financial Group
$250,000, and this doesn’t even factor in college expenses.1 It’s helpful to come up with a budget before your new baby arrives and adjust it as needed. FUND YOUR HEALTH SAVINGS ACCOUNT (HSA). If you have an HSA account, you
can use those funds for routine doctor visits. When your newborn is sick, the last thing you want to worry about is how you will pay for your baby’s co-pay and the cost of medicine. CUT DOWN OR PAY OFF OLD DEBT.
Before adding new debt with the cost of a child, it’s a good idea to pay off old debt, including credit card balances, student loans, and any other debt you can afford to pay off.
UPDATE YOUR BENEFICIARIES. Ensure
the money you have saved goes to the appropriate people in the event something were to happen to you. If this is your second or third child, don’t forget to review
If you do not have a current will or trust, now is the best time to create one. More importantly, naming your child’s guardian in the event you and your spouse were to pass away is crucial to ensuring your children are cared for in case you pre-decease them.
DON’T FORGET ABOUT YOUR RETIREMENT ACCOUNTS. You should always
fund your own retirement before funding other goals. Be sure to consistently contribute to your retirement accounts so you can retire and enjoy what you have worked for. CONSIDER FUNDING A COLLEGE SAVINGS PLAN. After paying for the necessi-
ties and funding your retirement accounts, you may want to consider funding an account for your child. When it comes to saving, the earlier you start, the longer you have to let your funds grow. By the time your children are ready to attend college, you’ll be in a better place to help with college expenses. Wedding planners and life partners are with you during some of the most important events of your life. At Stifel, the Campbell Hutchinson Financial Group is here to help you navigate these events while you plan and prepare for your life full of K-I-S-S-I-N-G.
¹https://www.usda.gov/media/blog/2017/01/13/cost-raising-child
Richard Campbell, CIMA® Senior Vice President/Investments
Paula Hutchinson, AAMS®, AIF® Senior Vice President/Investments
Zachary Hageman, CFP®, Financial Advisor Associate
3555 North Crossing Circle | Valdosta, Georgia 31602 | Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE | www.stifel.com Winter 2021
53
