Family Financial Planning
When you’re single, your financial priorities can be relatively simple: pay your bills and start saving for retirement through your company’s 401(k) plan.
But once you start a family, your financial picture becomes more complex. And that complexity often grows over time.
Sound family financial planning should address:
- Adjusting your balance between saving and spending as you move through different stages of life
- Living within your means and budget
- Finding ways to chip away at your ever-increasing debt
- Developing an estate plan that ensures that your assets will be passed on to your heirs and favorite charities according to your wishes
- Dividing your investable assets into separate pools to save for retirement, your children’s college education, or for the down payment on a home—and making sure each mix of investments aligns with your personal goals
This much planning can feel overwhelming. That’s why many families partner with a fee-only fiduciary family financial advisor who offers the support you need to solve your financial planning challenges.
Key questions about family financial planning a financial advisor can answer
- How can we manage our spending with greater discipline?
- How much money will we need to live on during retirement? And what will our retirement income sources be?
- Are we contributing enough to our IRAs and 401(k) accounts? Should we change how these assets are invested?
- Which kinds of debt should we focus on reducing first?
- Which college savings plan makes the most sense from an investing and tax perspective?
- How can we reduce investment taxes generated by our taxable accounts?
- Do we need life insurance? If so, what type should we get? And how much coverage do we need?
- At what age should we start taking Social Security benefits?
- What can we do to help our parents when they’re no longer able to make financial decisions on their own?
- What’s the most tax-advantaged way for us to donate to charity?
- How can we ensure our assets are passed on to our children in the most tax-efficient manner?
Family Financial Planning Challenges
How a financial advisor in the Wealthramp network can address your family financial planning challenges
Serving as your financial advocate, your Wealthramp network financial advisor works directly for you. They’ll examine your family’s expenses, income sources, and investments to define your unique retirement, higher education, charitable giving and legacy planning goals.
They can work with you one-on-one or in collaboration with your tax advisor and attorney to:
Put your family on the right financial track
The biggest family financial planning mistakes
Failing to create and follow a budget that balances monthly income and expenses
Neglecting to build an emergency fund for unanticipated expenses like a new roof or out-of-pocket medical costs, or a pause in income from a job loss
Damaging your credit score by consistently making late payments and amassing too much unpaid credit card debt
Not contributing enough to your IRAs, 401(k) accounts and college savings plans
Failing to diversify the mix of stocks, bonds and cash in each of your investment accounts to align with your financial goals
Generating unwanted investment taxes by selling stocks and funds inefficiently
Paying thousands of dollars in investment fees for mutual funds when index funds and ETFs offer better returns at lower costs
Paying thousands of dollars in investment fees for mutual funds using an inadequate level of life insurance that won’t provide financial security for your family should you pass away unexpectedly
Failing to create an estate plan that specifies how you want your assets to be passed on to your heirs