5 Ways to Setup Your Adult Children for Financial Success
As your children age and learn to navigate their own financial challenges and opportunities, guiding them through these milestones and instilling good financial habits will help set them up for financial success. This video reviews five financial tips to share with your loved ones.
Giving your children the tools and knowledge to help them manage their wealth is critical. We’ve outlined 5 financial tips to help your children preserve and grow their wealth successfully.
1. AVOID “KEEPING UP WITH THE JONES”
Look at past purchases, if there are regrets, and if these purchases fulfilled expectations.
These can be difficult conversations.
We work with families to connect values to financial goals to behaviors.
2. ADDING INVESTMENTS & GETTING RID OF DEBT
It’s important to understand that getting rid of debt can big factor in financial planning and success.
As for investments, you may want to discuss retirement planning:
are they funding a retirement plan?
maximizing the company match?
is there a Roth 401(k) option?
3. START TAX PLANNING
Taxes can take a giant bite out of retirement income.
It’s important to understand the big picture perspective of taxes: tax rates, brackets, how they work, itemizing deductions, and maximizing current tax scenarios.
Balancing taxes paid today and those paid in the future will help your children get ahead financially.
4. START BASIC ESTATE PLANNING
Start the conversation by walking your child through your estate plan.
This can provide an opportunity to discuss some of the basics with your child, for example, do they have:
– a healthcare directive?
– life insurance?
– a will?
– durable power of attorney?
– designated guardians for their children?
5. MEET WITH A FINANCIAL PROFESSIONAL
A trusted 3rd party to help make financial decisions.
Especially important as your child enters their peak earning years.
A financial advisor will look at the big picture, including retirement, investments, insurance, college planning, etc. to develop a holistic financial plan.
If you would like to work with a financial advisor to help you and your children determine which solutions may be most appropriate, we invite you to connect with us by sending an email or filling out our contact form.
