7 Smart Financial Moves to New (and old) Parents

My wife and I had our first child in May. The moment they left us to take our beautiful daughter home from the hospital without a nurse to guide us was when we realized the responsibility found that a child brings!

For the last nine years working as a consultant, I help others to plan for the most important events of their lives, including marriage, children, retirement and leave a legacy for their family. By entering a new stage, I thought I would share some of the financial steps I've taken to help secure the financial future of my family.

Create a will and trust contingent. This is one of the most important first steps. Choosing a guardian for your children helps to ensure that they are raised by someone who you think share the same values. A contingent trust ensures that the money your child receives all of your hard work and planning is distributed according to your wishes instead of giving them complete control over everything the minute they turn 18.

update beneficiary forms. Make sure you check all your pension and insurance so something does not fall through the cracks. Many accounts with beneficiary designations will never pass through your will, so it is important that they are also updated.

start saving for college. There are different options available. You should consult a tax advisor and financial advisor to help determine which is best suited to the financial situation of your family. I opened a 529 plan for our daughter. The money in the plan can be used at almost any institution of higher education accredited in the world.

to purchase life insurance. My wife and I both have increased the amount of life insurance we have. We made a combination of term and permanent insurance to ensure we have the total we need at a price we can afford.

Buy disability insurance. When you're young, your potential future income is your greatest asset. Obtain disability insurance coverage as you can comfortably cover your income if you become ill or injured and can not work. A disability that lasts more than three months is much more common than you think.

Consider a small whole life insurance policy. I bought my daughter a policy. It accumulates tax-free savings and a guaranteed purchase option, which gives him the opportunity to purchase additional insurance when she is an adult, regardless of health status at that time.

Look FSA a dependent. many companies have such plans in place and are a way to pay for some of your care expenses with tax-free money. It is "use it or lose it" design, so you want to make sure you spend at least the amount you choose to have retained.

My goal as a counselor is to help families preserve wealth through several generations. These are some of the first steps you can take when you have a child to make sure you are on track to do so.

This article is intended for information purposes and should not be construed as a recommendation to buy or sell security products or securities. securities offered Ceros Financial Services, (not affiliated with Resource 1, Inc.). 1445 Research Boulevard, Suite 530, Rockville, MD 20850. (866) 842-3356 FINRA Member / SIPC

Before buying a 529 plan, you should consider if your state or the original state of your designated beneficiary offers any state tax or other benefits that are only available for investments in qualified tuition program such state.