Fathers spends a lot of time worrying about making ends of the Financial Needs of the families.
If you are a new dad or about to become one you’d better sit down.
Right now, you’re probably more worried about getting enough sleep than funding your retirement. But at some point, you’ll need to plot out a financial roadmap to ensure your family’s future financial security.
Secure your family by taking expert financial advice from certified financial planners, By leaving a missed call to 022-62116588 or visit Moneymindz. A thorough plan helps you enjoy your parenthood without financial drawbacks. Here are some financial tips on how dads can save, make money and help their kids to get most out of life.
1. Start saving ASAP. It’s hard to save for the future when you present expenses are so daunting, but it’s important to start making regular contributions to several savings vehicles. Even your retirement is decades away, the sooner you start saving and compounding your interest, the faster your saving will grow.
2. Get insured. If your family depends on your income, you must be prepared for life’s unexpected events, whether an accident, illness, unemployment or death. Make sure you’ve got adequate coverage for:
Health insurance. Everyone needs medical insurance, no matter how young or healthy. Just remember: Lower-premium medical plans aren’t necessarily cheaper overall; factor in copayment, deductible and prescription costs, in- and out-of-network charges and exclusions when choosing a policy.
Homeowner/renter’s insurance. Don’t let theft, fire, faulty plumbing or other catastrophes leave your family without a home or possessions. To reduce premiums, consider choosing a higher deductible. And opt for “replacement cost” vs. “actual cash value” coverage so your items will be replaced in today’s dollars, rather than after depreciation has been factored in — it’s more expensive coverage but worth the extra cost.
Life insurance. Depending on your family’s size and ages, you’ll probably want coverage worth at least five to 10 times your annual pay — more, if you want to cover college costs. And don’t forget to insure your spouse’s life so you’ll be protected as well. This calculator can help determine how much coverage you need.
Disability insurance. Millions of Americans suffer disabilities serious enough to make them miss work for months or years at a time; yet many forego disability insurance, potentially leaving them without an income after a serious accident or illness. Learn details of your employer’s sick leave and short-term disability benefits and if long-term disability is offered, consider buying it. (See my previous blog, Why Disability Insurance is Critical, for more details.)
Car insurance. Almost every state requires insurance if you own or drive a car — and for good reason: It protects you financially should you cause an accident or be hit by an uninsured driver. Make sure you have sufficient liability coverage to protect your net worth and income — it only takes one serious accident to wipe out your savings.
3. Get organized. Make sure your affairs are in order in case something should happen to you. Organize files for:
- Medical, homeowner/renter, auto, life, disability and long-term care insurance policies.
- Banking, credit card and loan accounts, including passwords for online account management.
- A will (and possibly a trust) outlining how you want your estate managed after death.
- Durable power of attorney and health care proxy specifying who will make your financial and medical decisions if you become incapacitated. Also, a living will tells doctors which medical treatments and life-support procedures you do or don’t want performed. If the primary assignee is your spouse, choose alternates as well, in case you’re both impacted.
- Birth certificate, marriage license, Social Security card, funeral and burial plans, safe deposit box information and other important paperwork.
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