Smart baby finance
THE COST OF PARENTHOOD
Becoming a parent can be a daunting prospect. However, whilst there is normally no shortage of people willing to offer valuable advice in the art of parenting, the financial implications are often overlooked. See Cost of Raising a Child
Planning for the Future
As a parent you will of course want to ensure the financial security of your family. This not only applies to the early years of your child's life, when a decent bank/savings account may be all that you would consider, but beyond this into planning for education, the first car, the first home, marriage and even their retirement!! Having a child also requires you to re-assess your existing financial planning arrangements, as your priorities will almost certainly have changed. You now have someone who almost certainly will be financially dependent upon you and your spouse/partner so it is equally important that you take this opportunity to review the following areas;
Savings
There are a number of savings products available to help you. Most of these are traditional savings plans such as ISA's and Unit Trusts marketed in a 'wrapper' aimed specifically at the child market. i.e. Baby Bonds. More recently the Government has been encouraging savings in these areas under Children's Trust Fund arrangements and there are a number of other 'tax efficient' arrangements that could be considered.
Life Cover
The untimely death of a parent would be traumatic enough without the additional burden of the financial impact. Adequate life cover would help to soften the blow and ensure that the remaining spouse can continue to manage your child's costs.
Critical Illness
How would your loved ones cope financially if you were diagnosed with a long term major illness, such as cancer? This can sometimes mean changing your lifestyle and work. Ensuring you have adequate cover is very important to replace years of lost income.
Income Protection arrangements
Can you afford to be sick? The additional financial responsibilities that a family bring need to be considered should you be unable to work for any length of time and your employer arrangements are limited. A vital area if you are self employed!
Medical Insurance
How long would you be prepared to wait for that vital operation or consultation? The earlier you get treatment the earlier you go back to work, however you must ensure that any cover suits your particular circumstances.
Wills and Inheritance Tax planning
If the worst happens a will is essential in ensuring that your chosen beneficiaries retain your estate and not the taxman! This is even more important if you are unmarried.
The Spectrum Partnership
As a firm of Independent Financial Advisers, directly regulated by the Financial Services Authority we are ideally placed to assist you in resolving any of the issues that may arise in relation to the above and can help you plan for all future circumstances.
If you would like to discuss these or any other financial aspect in more detail, please telephone us to arrange an initial consultation, free of charge and without obligation (0207 758 9944), or email us on tsp@spectrumpartnership.co.uk . You can also find out more about us by logging on to our website www.spectrumpartnership.co.uk.
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