How To Prepare Financially For The Birth Of A New Child

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Whether you're a first time parent or a grandparent to-be, there's nothing like planning for a baby's birth - you get to pick out a name, clothes, furniture, and of course, the stuffed animal they'll carry around with them for the next several years of their life. But aside from all of the fun stuff that comes with preparing for your baby's birthday, there are also some pretty serious topics that need to be addressed, starting with money - according to an article from MarketWatch, recent findings suggest that the average cost of raising a child is over $245,000, and that's without college tuition or considering a child's needs after age 18.

Knowing that a child can be pretty costly, we are providing a few tips to help you prepare financially:

Find The Right Health Insurance: The cost of being pregnant alone is something that mustn't be overlooked - medical bills that result from multiple doctor appointments and the birth of your child itself will certainly add up before or right after your baby arrives. With that said, you need to do some serious thinking when it comes to the health insurance you currently have, and if it isn't going to help much with the costs, consider looking into any other plans you have available to you.

Talk To Your Employer: Even if your company offers maternity/paternity leave, you have to remember that this won't last forever, and there may be circumstances where you need some additional time off. Unless you have additional sick or personal days that you can use to spend time with your new baby, it would be in your best interest for you and your spouse to talk to your employers to learn if there are any other parental leave policies in place.

Re-evaluate Your Budget: The budget that you and your spouse once followed is likely going to have to change, but the time to figure that out is not after the baby is born - you need to start implementing new spending and saving habits well before then. With baby food and baby supplies about to be on your shopping list, you may find that you need to cut back in other areas or add more to your savings accounts while you still can.

Start Thinking About Opening Accounts: To ensure that your child has the funds they need as they get older (for college, for instance), you may want to consider opening a savings account or two in their name right after they're born. Some possible accounts include a 529 plan, a UGMA or a UTMA. Saving from a young age is extremely important, and since your baby won't be able to do so on their own just yet, it's helpful for you to give them a head start by opening an account like these as soon as you can.

Welcoming a new baby is certain to be one of the most exciting times in a parent's life, but it can also be overwhelming if the proper planning isn't done. But we want to help! Here at American Investment Planners LLC, we help families plan for all of life's greatest events and milestones, and we would love to be a part of your pre-baby planning experience.

For more information about our financial planning services, please visit us on our website or call (516) 932-5130 today.

Financial Tips For Expectant Parents

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

When you think about what it means to be an expectant parent, what are the top three things you would say you have to plan for? The baby's room? What you will need to bring to the hospital during delivery? Picking a name? Although these are all very important topics that need to be addressed in advance, one of the most pressing topics that must be discussed is money – how will personal finances change before and after the baby is born? Unfortunately, however, with so much circling in the minds of expectant parents already, money is often one of the last things on their list of things to consider.

To make the process of preparing for a newborn easier on soon to be parents, we've put together a few tips to help where personal finances are concerned; check them out below:

• Depending on the availability of maternity leave, all expectant parents should have a plan for who will take care of the baby and when. In some cases, this will require outside help from a babysitter or daycare center, and that can mean added costs. Prior to returning to work, parents should begin seeking additional care to find a solution that works within their budget.
• Although college won’t even be a thought in the child’s mind for another 18 years or so, expectant parents should have an idea about if and how they will save for tuition costs. For detailed tips on how to save for college tuition, check out one of our previous blog posts.
• While the tiniest of baby clothes are often the cutest, expectant parents should always shop smart and choose items that their children can grow into. But shopping smart doesn't just have to do with clothes! To get the most bang for their buck, parents should keep an eye out for sales in baby stores and choose expensive products like high chairs and cribs carefully.

But the financial planning doesn't end there! Once a child is born, we encourage all expectant parents to meet with a financial planner like ourselves to properly plan for how the rest of their finances will change. With new financial obligations in place, it's important to determine how retirement planning, tax planning and estate planning strategies may need to be adjusted.

For more information about financial planning (and by that we mean for the whole family), contact us at (516) 932-5130 today!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.