If you are thinking about having a child, you might be planning a trip to the doctor's office, not to a financial planner's office. However, it's actually smart to hire a financial planner before having a child. These are three of the main reasons why.
1. Get Your Financial Ducks in a Row Before Your Child is Born
For a family in the United States that had a middle income, the average cost of raising a child from birth until age 18 costed an average of $245,340 in 2013. Obviously, this isn't chump change, and many of the costs will begin before and shortly after your little one is born. Buying formula and diapers isn't cheap, and the costs continue to add up. This means that it's better to get your financial ducks in a row before your child is born, and your financial planner can help you do just that.
2. Prepare for Your Child's Future
Not only do you have to worry about the cost of raising your child until he or she is 18, but you also have to worry about his or her future. If you want to help your child pay for big expenses like going to college or having a wedding, you may want to start planning for these things now. The power of compounding interest can make saving for these things a whole lot easier if you start early, so it's never too soon to start thinking about the future, even if your child hasn't been born -- or even conceived -- yet.
3. Make Adjustments to Your Documents
Now that you are planning on having a child, you may need to make adjustments to some of your financial documents. For example, you may want to adjust your will so that you can set up a trust fund for your child in case you pass away while he or she is a minor. Some people put these things off, but you never know when something tragic could happen, so it's important to go ahead and get these things squared away as soon as possible. Then, when your child becomes an adult, you may wish to adjust your documents again so that he or she can be a beneficiary.
It's always a good idea to meet with a financial planner when making major life changes, including preparing to have a child. These are just some of the reasons to consider scheduling a meeting before the birth of your little one. To learn more, contact a company like Global Wealth Consultants LLC.
