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Every parent knows that having kids complicates your financial life. The most recent federal estimate puts the average cost of raising a child born in 2013 until age 18 at nearly a quarter of a million dollars — $245,340 to be exact. And that doesn’t even take into account saving for college.
Your actual cost will vary, of course, according to who you are and where you live. The bottom line, though, is that you’ll need a sound financial checklist when planning for a child. It should address your employer’s family leave policy, as well as anticipated child care costs, health insurance and, eventually, paying for college. I participate in a variety of forums with other advisors. Occasionally there is a question, “Should I buy the stock of X company?” The usual response from advisors is to forgo individual stock investments and concentrate on building a low cost, diversified portfolio of mutual funds or ETFs. It’s good advice. It’s also advice I give my clients.
But I have an additional thought: You should buy that stock. I was talking with a client recently. She was expressing some concern for her investment accounts based on a recent article she read in the New York Times. We talked through some scenarios with regards to how this might affect her investments and long term plans. Although we walked away with the realization that there were not any major changes to her investment plan needed, we did realize something else. Volatility is back.
(Or: You ARE a unique Financial Planning Snowflake)
Our daughters Quinn and Rowan are in many ways polar opposites. Quinn frequently takes 30 minutes or more to wake up in the morning, and all she wants to do is snuggle. Rowan just as frequently wakes up smiling and laughing. Rowan has light-colored and textured hair. Quinn was born with a full head of dark hair. The list of differences goes on. The fact that my daughters are so different frequently fills me with wonder and amazement. And I can’t wait to see what unfolds for them in the future. |
DisclaimerNote: The contents of this site are general in nature and not intended as specific investment advice. All investments are subject to risk; including loss of investment value. If you have any question regarding investments or concepts in these pages, please consult with an investment professional. Archives
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