Whether you have started a new family or now have a blended family, you are faced with many new challenges and responsibilities. We’ve been there and it’s daunting! And the easiest thing to do is put the decisions off for a later, more convenient time… Well, that time just doesn’t ever come unless we make time for it.
Three of the main reasons we put off making decisions about college savings, insurance, wills, trusts, and guardians for the children are 1) the belief that there is a lot of time left to save and plan, 2) you just don’t know where to start or who to call, and 3) thinking about leaving our children via death or disability is a truly unpleasant thought and planning for the event is just downright scary.
My first set of questions to parents include:
- If you die, who takes care of your children? Are you OK that the three children may be split between different relatives for a while? Or are your 75 year old parents capable of handling and caring for the three children under 10 for the next 10 years?
- Do you realize your property will be held up in probate court and the fate of the guardians in limbo? And the battle will be open for public information since it will be tied up in probate courts?
- If you have a $1M insurance policy, do you have instructions in place to ensure the money is not blown before college or emergencies that may come up for medical and support needs? Is there a trustee who can be objective and independent to disburse the funds to meet your child’s needs and assist the guardians to care for your child as you would?
- Calculating college funding: Do you realize that if you save $100 each month for each child from birth to age 18, you MAY barely have enough money to pay the tuition for 4 years at a state school? $100 x 12 months = $1,200 x 18 years compounded at 8% interest = $48,011 at age 18. Waiting until your children are in grade school could be devastating to your budget and standard of living. If you start when little Johnny is 12 years old, you will have to save $522 per month for 6 years to reach that same goal of $48,011!! Right now, $100 per month is looking pretty good, huh? Remember, that $48,011 is NOT enough to cover room, board, and books… just barely tuition, if that!
No time like the present ~ Call us today. Dianne will help you map out a plan to meet the college funding, life insurance, long term care insurance and even retirement planning needs. We will talk through options for trusts, guardianship, and even the transfer of assets to your children and step-children in a fair, cost efficient, and effective manner. You will be provided the names of several estate planning attorneys and CPAs who are leaders in the Texas, Florida, and South Carolina market areas.
These could be some of the most important decisions you ever make. Our families are the greatest gifts we will ever be given and it is a privilege to you protect yours.
*Securities and advisory services offered by and through advisory representatives of Lincoln Financial Securities Corporation, Member SIPC. Lincoln Financial Securities Corporation and Newman Asset Management, LLC are not affiliated.
Branch office: 3200 Southwest Frwy. Suite 1420 Houston , TX 77027 Tel: (713) 659-1212