CINCINNATI (FOX19) - West Chester Hospital has put together a seminar to teach financial planning techniques to new parents. Here are a couple points to follow, according to financial experts from Northwestern Mutual.
Parents who get a jump start on saving for college are far more likely to have the means to cover most, if not all, of their child's tuition. If current trends continue, 18 years from now college costs will range from merely very high to astronomical. Above all, consider setting up a 529 plan as soon as the child is born. This is a simple and easy way to set aside money in an education-targeted way. These
accounts grow on a tax deferred basis, while the distributions are free of federal taxes as long as the proceeds are used to pay for higher education.
Many don't know that it is more expensive to obtain new life insurance or expand existing coverage after the first trimester. This is because many women develop gestational diabetes in the later stages of their pregnancy, which means they are technically categorized as a diabetic for insurance purposes, leading to more expensive premiums. While the premiums drop after the baby is born (as the condition
will go away), not actively preparing before the end of the first trimester is likely to result in higher costs.
Wills, Trusts and Estate Planning
Everyone who has or is expecting a child should have a will. No exceptions. The same goes for having a trust and an estate plan. Moreover, first-time parents may sometimes have other relatives named as beneficiaries for certain investment, insurance and savings vehicles. This means that parents must ensure that they go through all forms in connection with their personal savings accounts, retirement plans, investment accounts and insurance policies to explicitly designate their spouse and children as the beneficiaries. Otherwise, there's the risk that such funds could get tied up in probate, even if the will is clear as to who should be heir to the estate.
If you want more information on getting prepared there is a FREE Financial Planning for Your Family Seminar at West Chester Hospital on Wednesday, March 16 – 7 p.m. to 8:30 p.m. at West Chester Hospital, Plaza Conference Room, Level A.