Mother’s Day Checklist

With Mother’s Day here this weekend, we would like to wish all mothers a very happy Mother’s Day!

We know parenting makes for a busy life and financial “to-dos” can often take a back seat.

So, we have a special “Mother’s Day checklist” to help parents ensure that their plan isn’t missing anything as their family grows.

• Emergency Reserve
  • If you are already a parent, you’re well aware – kids can cost money! If you’re a new parent or considering having a child, consider increasing your cash reserve for expenses related to children. A child may need an emergency visit to the doctor or you may need to hire a baby sitter last minute. Things will come up with children, so an increased cash reserve may be appropriate as you add children to your family.

• Insurance Coverage – Have you had this reviewed recently?
  • Life & Disability Insurance – Is your family financially reliant upon your income? Do you have the right life or disability insurance to replace your income if anything were to happen to you?
  • Liability Coverage – Liability coverage can protect your assets if not only you are held liable for something, but also if your child is found to be liable for an accident or negligence of some sort.
  • Healthcare – If you expect higher medical expenses with children, you may want to consider choosing a lower deductible health insurance plan.
  • Auto – Are your kids driving? Do you have adequate liability coverage on your auto policy or maybe additional liability coverage through an umbrella policy?

• Estate Planning – When was the last time your estate planning documents were reviewed?
  • If anything were to happen to you, your estate plan directs how your assets are transferred. You can get very specific with how assets would be handled as well (i.e. – only distribute “x”% by this age, etc.), but you need to make sure documents are established and accounts are funded.
  • The funding of estate plans is a common oversight. Trusts can be written with good intentions but if assets aren’t titled to the trust, the rules of the trust won’t apply to those assets.
  • You can also set guardians for children and power of attorneys for children if you were to pass away.

• Education Planning – There are tax advantages to different education savings accounts. The accounts and advantages available depend on what type of school you are hoping to fund and what state you live in.

• Tax Planning – Are your children part of your tax plan?
  • There are children tax credits. Are you close to the income threshold for these credits? If so, is there any tax planning that may maximize your credits?
  • Are you taking advantage of tax incentives for educational expenses and savings?
  • Would a Flex Spending Account for day care be a fit for you?

• Budget for yourself!
  • Finally, don’t neglect your own care! Whether if it’s budgeting for a vacation, baby sitters, day care, time off from work, or being able to be a full time parent, we all need to consider what is right for us and what’s the right balance.

I hope this checklist helps. And of course, we are always here if you’d like to discuss any of the topics here any further.

Disclosures:

Impact Financial, LLC (“Impact Financial”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Impact Financial and its representatives are properly licensed or exempt from licensure. This article provides general information and should not be taken as advice or a specific recommendation. Please consult with a trusted advisor to receive advice specific to you.