3 Things all New Parents Must do

Rachael Green
2 min read
0

Photo by Isaac Quesada on Unsplash

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

This Father’s Day, take some time to make sure your family’s financial future is in order. With important steps like opening a college fund and making a will, the earlier you do it the better. Here are 3 things all new parents must do to make sure their family will have everything they need.

Open a College Fund

Saving up for college is one of the best ways parents can provide their kids with a solid start to adulthood .The first step is to open a 529 account, which is a tax-shielded account you can put savings into without paying taxes on the interest earned.

If the money is used for college expenses, the withdrawals are also tax-free. If you or your child need the money for something aside from college, you can still make withdrawals. They just won’t be tax-free.

Once you have the account, the next step is to calculate how much you need to deposit each month in order to have enough by the time your child is ready for college.

Make a Will

Making a will early on is important. Not only does it ensure your assets go to the beneficiary of your choosing, it’s also the document where you appoint a legal guardian for your children and where you make final arrangements so that your loved ones don’t have to go through the stress of planning a funeral when they’re already grieving.

On the Fabric App, you can make your will for free or open a 529 plan. The platform makes the process as simple as answering a few questions. Based on your answers, the app generates a filled-out, customized will for you. After that, all you have to do is print and sign it, along with two witnesses to make it legally binding.

Make Sure You Have Enough Life Insurance

If the assets your family will inherit aren’t currently enough to replace the income you provide, life insurance is one of the best ways to cover the gap. Figuring out how much coverage you need can be tricky. You could have some coverage already through an employer-provided policy. You might have different financial goals to fund, like college funds, weddings or a mortgage.

Take some time to calculate your various long-term financial goals and what percentage your income contributes to those goals.

If you need some assistance in calculating how much insurance you need, Fabric can help you. Complete their short quiz to get started.

As a new parent, taking the time now to ensure your family’s future will give you the peace of mind that your family will have everything they need, no matter what comes your way.

Life happens. It’s best to be prepared for it.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement

Recommended Stories

  • Homes are overvalued in much of the U.S. — with these 5 states leading the list

    Home prices are overvalued nationally, according to a new report by Fitch Ratings, led by Southern states.

  • 'Which Bucket Do I Draw From First?' Suze Orman Explains To 67-Year-Old The Best Order For Tapping Into Her Retirement Accounts

    When Ellen, a 67-year-old retiree, reached out to Suze Orman during her podcast, she had a straightforward yet crucial financial inquiry: "Which bucket do I draw from first?" Ellen, whose Social Security covers most of her daily living expenses, needed guidance on how to use her different types of retirement accounts for additional expenditures like travel. Don't Miss: The recommended retirement savings amount is $550K, but here is why so many Americans are falling short. Reddit user reveals his

  • My father ‘deliberately and hurtfully’ cut my late sister’s two kids out of his will. How can I ensure they get their fair share?

    “How can I best do this in such a way that nobody is penalized from gift taxes and other costs?”

  • Dow Jones Rises After Hot Inflation Data, Powell Next; GameStop Rockets 112%

    The Dow Jones rose Tuesday on the stock market today on hot inflation data. Fed Chair Jerome Powell is next. GME stock rocketed 112%.

  • Fed's Powell: PPI 'mixed,' next move unlikely to be a rate hike

    Federal Reserve Chair Jerome Powell on Tuesday said the latest report on U.S. producer prices was more "mixed" than "hot" given that prior data was revised lower even as the figures for April came in higher than expected. "I wouldn't call it hot, I'd call it mixed," Powell said at an event in Amsterdam after the Labor Department released the Producer Price Index for April. Asked if the recent run of higher-than-expected inflation might mean that the Fed's policy rate is not sufficiently restrictive to return inflation to the Fed's 2% target, Powell said "time will tell."

  • 10 Stocks 'Roaring Kitty' Should Target Next Instead Of GameStop

    Meme-stock maven Roaring Kitty surfaced on social media again to hype GameStop shares. But there are better targets beyond the S&P 500.

  • Prediction: These Are Wall Street's Next 3 Stock-Split Stocks to Follow Walmart and Chipotle Mexican Grill

    Nearly a dozen high-profile companies have conducted a forward-stock split since the midpoint of 2021. Three prominent, time-tested businesses may be the next stock-split stocks.

  • Southern States Sink As Seriously Underwater Home Mortgages Rise

    According to a report released on May 9, 2024, the number of properties classified as seriously underwater is ticking up, with southern states bearing the brunt of the phenomenon. One in 37 homes with mortgages was considered seriously underwater during the first quarter, according to real estate data provider ATTOM's 2024 U.S. Home Equity & Underwater Report. That's up from one in 38 homes during the fourth quarter of last year. A mortgage is considered seriously underwater when the estimated l

  • Can You Guess How Many Retire With A $5 Million Nest Egg?

    In the realm of retirement savings, only a select few in the United States achieve the milestone of a $5 million nest egg. Data from the Employee Benefit Research Institute, based on the Federal Reserve’s Survey of Consumer Finances, reveals that a mere 0.1% of retirees manage to accumulate over $5 million in their retirement accounts, whereas only 3.2% amass over $1 million. Don't Miss: 82% of Americans aren’t using this government secured 5% passive income stream, are you one of them? Can you

  • SunPower Stock Soars on Meme Frenzy as Short Interest Mounts

    (Bloomberg) -- Heavily shorted SunPower Corp. shares have been caught up in the meme-stock frenzy, sending the solar power company toward its biggest gain on record.Most Read from BloombergTrump Vows ‘Day One’ Executive Order Targeting Offshore WindMacron Puts French Banks in Play With Plan to Transform EuropeBiden Adds Tariffs on Chinese Chips, Critical Minerals, EVsFive Under-the-Radar Billionaires Making Vast Fortunes in Modi's IndiaTesla Rehires Some Supercharger Workers Weeks After Musk’s C