New Baby in the Family? It’s Time to Put a Financial Plan in Place.
October 10, 2017
Amidst the excitement of welcoming a new baby into the family, new parents have important financial decisions to make. According to the U.S. Department of Agriculture, the average cost for middle-income families to raise children from birth to age 17 is $233,610 per child. From putting away money for college tuition, to planning a “Disneyland fund,” Tim Schell, a financial advisor with , offers the following advice for new parents.
Start saving early! — Time is the most valuable resource we have when investing, so get started early. We recommend new parents start planning within the first year of a new baby’s life. This helps reduce the risks associated with investing, while maximizing the potential of your invested dollars. A $100 per month investment in a tax-free college savings account can grow to more than $48,000 over 18 years, assuming no withdrawals are taken. (This is a hypothetical example and is not representative of any specific investment. Your results may vary. Investing involves risk, including the loss of principal.) Which brings us to the next point. Read more...