The addition of a new family member is a wonderful and life-changing event! Your new family member may be a new spouse, a new son- or daughter-in-law, a new child, or a new grandchild. Along with celebrating this new family member’s arrival, consider how you may need to make changes to your retirement lifestyle planning.
The following helpful reminders can help you to start your new family member on firm financial footing.
Health Insurance and Employee Benefits
Insurance is an important component of retirement lifestyle planning. If your new family member can be included on your health insurance, contact your HR department. Evaluate whether a family plan or an individual plan would serve your new family member best, and be sure to ask plenty of questions. Ask what other benefits your new family member is entitled to in regards to your employment.
Update Your Will
Consider updating your will, or, if you haven’t yet made a will, consider writing one. This is especially important if your new family member is your own child. You’ll need to assign a guardian to your child in case something happens to you.
Update Your Beneficiaries
In addition to updating your will, you should update your beneficiaries when you welcome a new member to your family. Don’t forget to update your beneficiaries for your insurance, your investment accounts, and your will.
Contribute to 529 Plans
If your new family member is a child or a grandchild, consider setting up and contributing to a 529 College Savings Plan. When you begin early, your deposits have time to grow and grow before they’re withdrawn to pay for college tuition.
Rework Your Investment Plan
With the introduction of your new family member, you may need to rework your investment plan. Will the arrival of your new family member affect when you retire or when your spouse will retire? Will you need to make any changes in the way you contribute to your retirement accounts and other investments? Working with your financial advisor, you can examine your investment plan and make changes that will help you to stay on track with your original plan as you welcome a new member into your family.
Evaluate Your Tax Situation
Work with a CPA to determine how your new family member will affect your taxes. You may need to adjust your tax deductions or make other changes to the way you handle taxation. Even if there isn’t room for improvement, it’s always good to have a rough idea of what you can expect with taxes.
At WrapManager, we can help you to celebrate the arrival of your new family member by incorporating your family member into your comprehensive investment plan and reviewing your retirement lifestyle planning. To speak with one of our Wealth Managers, contact us at 1-800-541-7774. They will be happy to help you.
