Cindy is a Wealth Strategy Associate specializing in wealth management and financial advising at The Helton, Browning & Mosely Wealth Management Group, a branch of UBS Financial Services, in Waco. Cindy focused her discussion during our meeting on financial planning for young families and she covered the following topics with us during that discussion.
Life Insurance:
-Term life insurance is a relatively inexpensive way to protect your family against risk. Consider getting insurance for stay-at-home parent as well as the one working.
-When considering how much life insurance to get, take expenses and future expense into account. Think about college expenses for your children, living expenses and any debt you might have as well.
Wills, Medical Directives and Estate Planning:
-It is very important to have a will and medical directive. Make sure someone knows where to find your will in the event of your death.
-Make sure you communicate any planning you may have in place for your children & estate to family members. They need to know your wishes in the event you pass away.
Safe money concepts:
-Emergency fund: build up to 3-6 months of income, in case your job has to change unexpectedly. The amount you may need depends on how secure your job is and how long it might take you to find another one.
Managing debt:
-Work your debt down by paying of the debt with the highest interest first.
-Try the "Latte effect" for a month: write down every expense for 30 days to account where your money is going and find room to save, if necessary.
-Pay yourself every month with automatic savings plans. You can use an automatic transfer from one account into a savings account so you don't even have to think about it.
Retirement planning:
-Consolidate 401K plans or other retirement plans you may have acquired from various jobs for simplicity
-Turn IRA's into "stretch IRA's": If you name children as contingent beneficiaries (after spouse as primary), they can inherit it in full instead of paying up to 30% in penalties. Children under 18 will need a custodian named for them.
College planning:
-529 Plans: You retain ownership and can change beneficiaries as your or your children's needs change. This can be used for housing, rent, and books, as well as tuition.
-Texas Promise Fund: You can pre-pay at today's tuition rates for courses at Texas schools in the future when your children are college-age.
If you would like to have more information on how to plan financially for your family's future, contact Cindy at:
Cynthia 'Cindy' Mosley-Guy
The Helton, Browning & Mosley
Wealth Management Group
UBS Financial Services, Inc
254-751-5034 Direct Line
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