Five Ways To Safeguard The Future For Your Kids 

One of the best things as a parent is looking after your children, and setting them up financially is at the top of that list. Most parents find it difficult to send their kids to college nowadays, while millennials earn significantly lower than boomers. Compared to their parents, millennials have a lower homeownership rate and much higher student loan debts. The slow salary growth and globalization have both contributed to the current state of affairs we face today. Click here for a few financial plans to help you safeguard your child’s future, setting funds aside for college or combat any unforeseen catastrophes.  

Consider A 529 College Plan

Savings plans and prepaid plans are the two types of 529 college plans parents should consider. Although prepaid plans prohibit funding boarding and living expenses, this plan allows you to obtain tuition credit for future use. A 529 savings plan, on the other hand, like an investment fund grows over time. With a few investment options, while your child is young, investing is the best option, and as the child grows, focus on a more conservative investment option. To maximize future growth, you should fund the account to its maximum capacity when your child is born, as suggested by financial experts. 

Keep Your Will Updated 

Most adults do not have a will, mainly because they think it’s too soon, and they don’t need it until it’s too late. One of the best ways to secure your child’s financial future is by creating and updating your will regularly. Should you die before your children are of age, it is critical to designate a legal guardian for your children, property, estates, and drawing a will should not be an expensive exercise.  

Update Beneficiary Information

Keeping your beneficiary details updated on your retirement, bank accounts, and insurance policies. Beneficiary designation forms considered to be stronger and override any details in your will. As soon as your child is born, it is vital to update your beneficiary information. In case the beneficiary predeceases you, another great action would be to name a contingent beneficiary. 

Open A Trust Fund (Custodial Account)

Opening a custodial account in the name of your child is one way to safeguard your kid’s future. A custodial account is one of the most straightforward accounts to open, with terms and conditions that need to be considered first. Depending on your locality, your kids will have control of the account as soon as they turn 18 or 21. Another consideration is that having a custodial account is taxable as it reaches the first $950.

Get Life Insurance

The latest statistics suggest that although many people nowadays have life insurance plans, a significant number of people who need life insurance don’t have it. Many households with minors and dependents will struggle to survive, go to college, or pay essential bills when the primary income earner suddenly dies. One of the biggest reasons that people avoid getting life insurance is the heavy cost perception. However, life insurance is tailored with many affordable options to best suit your needs.

 

 

 

 

 

 

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