IN Mt. Lebanon Summer 2017 | Page 13

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