Birth Of A Child
Nothing in life is more significant than having a baby. Whether it's your first child or your fourth, you'll feel the same joy and excitement. Having a child also triggers concern for many parents. After all, with the extraordinary changes that it brings, how do you begin preparing financially?
There are undoubtedly many financial needs to think about, from determining how many diapers and how much baby food will add up to every week, to figuring out how much a college education can cost in the future. And beyond the short- and long-term expenses, you need to consider insurance, taxes, estate planning issues and other related financial issues.
Before you begin the planning process, take a deep breath and relax. We know it can be somewhat overwhelming to think about all these new financial needs and how they will affect your life. But with the right preparation and know-how, we believe it's possible to achieve your financial goals.
The Big Picture
Before you think long-term, be sure you can take care of your urgent financial needs. What is your budget for basics such as food and shelter? Do you have an emergency fund with at least three months of income in savings? Have you purchased sufficient insurance to help protect your assets such as your home? These are your most basic needs that relate to financial security and, now more than ever, it's essential that you consider these first.
While creating savings to reach basic goals is essential, now is also the time to plan for future goals, like education and retirement. And, the sooner you start investing for these goals, the greater your possible returns can be. For example, if you were to invest in the market for one year, your chances of making money would be 66%. But if you were to stay invested for 10 years, your chances of making money would jump to 89%*. That's the power of time in the market, and it's something you should use to your benefit while your child is young.
It's always important to look at the big picture to make certain that you're saving for both your short and long-term goals. With a new baby, this becomes even more crucial. Learn more about how Warren Wealth Management approaches your needs. Please contact us and we will be happy to talk to you one-on-one and provide a free portfolio review. This can help identify and prioritize your financial goals and keep you on the right track in order to achieve them.
*Source: Bloomberg, S&P 500 index 1927 - 2003. S&P is an unmanaged index and cannot be invested in directly. Past performance does not assure future results.