presentable. You blink, and all of a sudden you’re saving for
two, then three, all while juggling your career, raising a little
INSIGHT
one, being a thoughtful spouse, paying INDUSTRY
real estate
taxes, and
worrying about the overall health of your lawn. My wife may
not share that last sentiment...
YOUR FINANCES
SPONSORED CONTENT
Family Matters: Getting Your
Financial House in Order
t has been the most exciting, joyous, and fulfilling time of
my life. That said, even as a financial planner, it hasn’t been
without its nagging thoughts: Am I saving enough? Am I
taking advantage of my benefits through work? Should I be
too long
ago,
I signed
up for the Would
new marriage,
new house,
thinking about ot saving
for
college
already?
my fam-
and newborn extravaganza. As many of you know, and I can
ly be okay (financially) if something terrible happened to
certainly attest to now, it is quite the transition. Times were a
me? Should I have an estate plan in place? What the heck
bit simpler before—pay your rent, go to work, brush your teeth at
s a Bumbo?
N
least twice a day, and look generally presentable. You blink, and all
of a sudden you’re saving for two, then three, all while juggling your
Although career,
a lot raising
of these
issues are uncomfortable to discuss
a little one, being a thoughtful spouse, paying real
and an added
expense
during about
an already
expensive
estate taxes, and worrying
the overall
health of time,
your lawn. My
handling wife
them
now
will
not
only
give
you
peace
of mind but
may not share that last sentiment...
a solid foundation
for the
securing
your family’s
financial
It has been
most exciting,
joyous, and
fulfilling future.
time of my
life. That said, even as a financial planner, it hasn’t been without its
thoughts: Am I saving enough? Am I taking advantage of my
College nagging
Planning
benefits
through
work? Should
I be thinking
about saving
As you know,
college
is already
an (almost
illogically)
expen- for college
already?
Would
my family
OK slowing
(financially)
something of
terrible
sive journey.
That,
however,
is be
not
the if majority
happened
to me?
Should I have
an estate
plan in
place?
ESTATE PLANNING
private colleges
from
increasing
tuition
year after
year.
If What
it’s the heck
is a Bumbo?
This is an important one, and likely the one issue on this list that
your family’s
wish to help cover some or all of these costs,
a lot of in
these
issues are
to discuss and
most young families ignore. Contact an estate attorney and establish
start saving Although
when they’re
diapers.
The uncomfortable
earlier, the better.
an added a expense
during
already
time,
handling them
wills and
powers of attorney.
Although
may set
back several
you’ve reached
retirement,
you’re no
longer this
relying
on you
wages
Look to establish
529 plan
and an
set
up an expensive
automatic
month-
now will for
not an
only
give you that
peace fits
of mind
for
hundred
dollars, thankfully
be a that
one-time
cost. term
to sustain
your family’s
lifestyle. it can
From
mindset,
y contribution
amount
into but
your a solid
cash foundation
flow.
securing
your family’s
financial
future.
In an
these effective
documents
will collect
dust and
life insurance
is ideal
truly world,
the most
(and
cheapest!)
way remain
You won’t
even notice
it after
a few
months. Also, let the
untouched
until
your
late
80s
or
90s.
The
unfortunate
reality
is that
COLLEGE
PLANNING
to go.
grandparents
know.
They just may want to lend a hand.
sometimes
bad
things
happen.
Spelling
out
guardianship
for
a minor
As you know, college is already an (almost illogically) expensive
child
or
enlisting
a
friend
or
family
member
to
make
financial
or
journey. That, however, is not slowing the majority of private colleges
So how do you know how much to purchase? If you’re not
Work Benefits
health
care
decisions
on
your
behalf
is
a
critical
element
to
ensuring
increasing
tuition
after
year.
If it’s from
your family’s
wish to help
running a thorough analysis on your existing portfolio,
Although from
there
are many
and year
they
will
differ
company
your wishes are carried out.
cover some or all of these costs, start saving when they’re in diapers.
anticipated Also,
growth,
and future cash flow, a good rule of
to company, I wanted to highlight one in particular—the
be sure to upd ate the beneficiary elections on your various
The earlier, the better. Look to establish a 529 plan and set up an thumb is 10x salary.
Have
a qualified
go out
to bid
Dependent Care Flexible Spending Account. This account
retirement plans
and life
insurance adviser
policies. The
election
you make on
automatic monthly contribution for an amount that fits into your to find a reputable
insurance
company
that
will
provide
that
allows the parent to set aside income before taxes in order
these
will
trump
anything
your
will
spells
out.
So
confirm
that these
cash flow. You won’t even notice it after a few months. Also, let the
coverage are
at working
the most
cost-effective
rate. If you’re not in
to help pay for the costs of childcare. Depending on your tax
in
concert
with
one
another.
grandparents know. They just may want to lend a hand.
good health, if you smoke, or have a family history of heart
THOUGHTS
disease, FINAL
for instance,
the low-cost alternative may be to
I
know
conversation can easily be placed on the back burner
Although these come in all shapes and sizes and will differ from
obtain that level this
of coverage
through your employer. They
as it tends to make certain individuals anxious and stressed. Try not
company to company, I wanted to highlight one in particular—the
will
likely
offer
guaranteed
coverage
at group rates for up to
Life Insurance
to be deterred. Set aside some time to discuss these issues with your
Dependent Care Flexible Spending Account. This account allows some
the multiple
of
salary.
The focus of life insurance is to cover a period of time in
bracket, this can easily save you 20 to 30% on what you elect
WORK BENEFITS
to contribute.
parent to set aside income before taxes in order to help pay for the significant other and start laying the groundwork to ensure your
family’s financial well-being. Consider hiring a CERTIFIED FINANCIAL
Continued.
PLANNER™ to help you along the way – and outsource
a headache.
LIFE INSURANCE
The focus of life insurance is to cover a period of time in which your
family is financially vulnerable. This window of liability typically exists
during your working years. Once you’ve reached retirement, you’re
no longer relying on wages to sustain your family’s lifestyle. From that
mindset, term life insurance is truly the most effective (and cheapest!)
way to go.
So how do you know how much to purchase? If you’re not running
a thorough analysis on your existing portfolio, anticipated growth and
future cash flow, a good rule of thumb is 10x salary. Have a qualified
adviser go out to bid to find a reputable insurance company that will
provide that coverage at the most cost-effective rate. If you’re not in
good health, if you smoke or have a family history of heart disease,
for instance, the cheapest alternative may be to obtain that level of
coverage through your employer. They will likely offer guaranteed
coverage at group rates for up to some multiple of salary. And for those still wondering, it turns out that a Bumbo is a foam chair
that helps your baby sit upright. Who knew?
which your
family is financially vulnerable. This window
costs of childcare. Depending on your tax bracket, this can easily save
of liability
typically
exists
during
your to working
years. Once
you 20 to 30%
on what
you elect
contribute.
This Industry Insights was written by Matthew D. Kelly,
CFP®.
As an adviser with Allegheny Financial Group, Matt helps
guide individuals and families towards achieving their
distinctive financial goals. Matt and his wife, Mia, left the
city life behind for Mt. Lebanon in 2016. A few months
later, they welcomed a son into the world, and are enjoying
family life in such a welcoming neighborhood.
For a better understanding of how Matt could work with
you and your family, please call him at 412.536.8076 or
email at [email protected].
Allegheny Financial Group is a Registered Investment Advisor. Securities offered through
Allegheny Investments, LTD, a registered broker/dealer. Member FINRA/SIPC.
Mt. Lebanon | Summer 2017 | icmags.com 11