Putting together a financial plan for your family can help you meet your financial goals. Family financial planning helps you set and reach goals for your own future and for the future of your children. There are many components to a successful financial plan — it’s not only about saving for college or making sure you have enough money to feed and clothe your family. During family financial planning, there are a few things people tend to forget about, which can do more harm than good in the long run.
When things are going well, it’s easy to forget to plan for a potential setback. You’re enjoying your employment or your health and don’t see those situations changing any time soon. But life has a way of throwing you lemons and expecting you to make lemonade. Even if things are looking good and rosy, it’s important to leave space in your financial plan for setbacks, from losing your job to getting sick. Having a few months of income set aside is one way to protect your family in case of an unpleasant surprise.
It’s common to assume that once your children are 18 or have graduated from college, you will no longer be supporting them. The reality is, today’s young adults are more likely to either live at home or get some sort of financial support from their parents, as the New York Times reported. About 20 percent of adults in their 20s or 30s lived with their parents in 2014, compared to 10 percent in the previous generation.
Having adult children live with you might be fine, but it might also be something you didn’t put into your family’s financial plan. You might want to think about having measures in place to provide support for adult children, even years after they’ve graduated from college.
In some cases, people get so focused on living their lives and taking care of their families, that they forget to plan for their retirement. As USA Today reported, more than 30 percent of non-retired people stated that they had nothing saved for retirement. Nearly 20 percent of the people surveyed who didn’t have any retirement savings were between the ages of 55 and 64, just shy of retirement age.
The best thing you can do is include retirement savings in your family financial plan as soon as possible. If you’re older, it’s not too late to start putting money aside for retirement. You don’t have to figure out the ins and outs of retirement planning on your own. Nicholas Wealth Management can work with you to put together an effective retirement strategy.
You don’t have to be a millionaire to worry about estate planning. Your estate is simply anything you leave behind for your family after you die, even if it’s just a few hundred dollars and a house. Since death seems far away, many people put off estate planning, occasionally until it is too late. If you want some say in who gets your assets after your time on earth is over, it’s important to think about estate planning now.
You Don’t Have to Work Alone
Financial planning can seem challenging since there are so many angles to consider and so many possible options. The good news is that it’s not something you have to undertake by yourself. Working with a financial planner allows you to put together a plan that will work through all of life’s stages, whether you’re getting ready to start a family, planning for retirement or already in retirement.
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