Welcoming a new child, while a joyous occasion, brings additional expenses that need to be considered. Childcare, education, maternity leave, additional insurance needs, etc. are a few of the more significant costs. How does this fit into your financial plan? Do you need to change your budget or save additional money if your maternity leave will not be fully covered? What savings plans or savings strategies should you use for your child’s education? Your advisor can help you understand the financial impact of growing your family and guide you on the necessary adjustments.

From student loans to 529 College Savings Plans, there are multiple options to consider when planning for education costs, whether in the near-term or long term. If you are looking at funding education in the near-term, your advisor can help you understand how much you can afford to spend from your savings versus how much you should finance with student loans. If planning for your child’s future education, your advisor can help you evaluate the various savings strategies to create a diversified strategy. 

Career shifts, relocations, and homeownership are only a few examples of the life changes that can significantly impact your financial situation. Can you afford the type of home and location you desire? How will a potential salary reduction from a career change affect your cash flow? If you need to relocate, what are the differences in the cost of living? Life changes often bring financial implications. Understanding these impacts in advance allows you time to prepare and make informed decisions. This is why family planning and life planning are so important. 

When working with a mortgage broker, you will often be pre-approved for more than what would be comfortable on a month-to-month basis. In order to determine how much you can afford, we recommend putting together a budget and looking at monthly payments that fit within this amount. Your financial advisor can help you evaluate how much you can comfortably spend on a down payment, closing costs, mortgage payment and other housing-related expenses. Housing-related expenses may include HOA fees, property taxes, insurance, and more. 

Getting married is an exciting time in life. When taking this big step with your partner, it is important to have discussions around each of your financial situations, spending habits, debt, goals, and lifestyle expectations. These discussions can help prevent undesired surprises later and allow you to create a joint path forward. Do you both share the same expectations when it comes to expense sharing, joint accounts, and short-term and long-term goals? In addition, you also want to consider tax implications (do you need to adjust tax withholding), insurance (life, disability, health, umbrella, etc.), and if you need to update your beneficiaries on any accounts. Overall, working with a financial advisor before and after you get married can help set you and your partner up for future success and fewer financially related disagreements.