Most of us have a lot on our minds. Kids, college, bills, cars, medical expenses, job related stress, retirement and on the rare occasion we have time — hobbies. Townsend Retirement Specialists understands the chaos and stresses of life. However, you never know when you’re going to encounter a situation you don’t know how to handle — for example, the death of a family member. Our Special Situations page has a lot of really helpful articles to help you prepare for these unknowns.
Teach Your Children Well: Basic Financial Education
Even before your children can count, they know something about money; therefore they need to learn how to handle it wisely. Children are able to correlate allowances to actual jobs — for instance, when you give your child an allowance they save a certain amount and spend a certain amount. The child receives the same allotted allowance each week on the same day (similar to adults’ paydays). Teaching children to save their money is a valuable lesson for them to learn early on. Taking your child to the bank to place money in a savings account introduces them to the concept of earning interest and the power of compounding. As children get older they start to gain a greater taste of financial independence; however with this comes greater fiscal responsibility.
Working During Retirement
Are you planning on working during retirement? If so, you are not alone. Many individuals choose to work in retirement for both financial and non-financial reasons. The obvious advantage of working during retirement is that you’ll be earning money and relying less on your retirement savings — leaving more to potentially grow for the future and helping your savings last longer. But many retirees also work for personal fulfillment — to stay mentally and physically active, to enjoy the social benefits of working, or to try their hand at something new. Several people preparing for retirement believe that their work is their passion, and to stop would be unthinkable. If you are thinking of working during your retirement, you’ll want to make sure that you understand how your continued employment will affect other aspects of your retirement.
The Joys and Financial Challenges of Parenthood
Parenthood is an exciting time of life. It also presents new financial challenges as your expenses increase. Children can be the biggest blessing as your family grows, but it can also be the biggest frustration. With the cost of diapers, baby food, and clothing it can add up fast. But the costs don’t stop as kids grow up. Next phase of life for your child is extracurricular activities like sports or music lessons, class fees, and healthcare to consider. And while it seems far in the distance, children eventually go to college and may need your help paying for it. Children are our greatest responsibility, as well as our most important and expensive commitment; therefore, managing money as a parent is crucial to family financial success.
Financial Survival After a Job Loss
Within the last decade; several big employers have slashed thousands of jobs from their payrolls. Workers continue to lose their jobs in mass layoffs, pushing the unemployment rate to all time highs — shedding millions of jobs each year! It’s hard to predict what tomorrow will bring — therefore, be prepared, plan ahead, take stock of your income, and cut your expenses. Read some of this information provided here on our website; mapping out your priorities and drafting a bare-bones budget can help you come up with your own financial strategy for job loss survival.
We’ve also put together a Surviving Layoffs section that is full of useful tips and information to help you deal with the unfortunate circumstances of a layoff for you or a family member.
529 College Savings Plans
A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996. 529 college savings plans offer a unique combination of features that no other college savings vehicle can match — for example: federal tax advantages, state tax advantages, high contribution limits, unlimited participation, professional money management, flexibility, wide use of funds, and accelerated gifting.
Death of a Family Member Checklist
Losing a loved one can be a difficult experience, especially when you have to complete a variety of tasks and make important financial decisions. You may need to make final arrangements, notify various businesses and government agencies, settle the individual estate, and provide for your own financial security.
How Grandparents Can Help Grandchildren with College
As the cost of a college education continues to climb, many grandparents are stepping in to help. This trend is expected to accelerate as baby boomers, many of whom went to college, become grandparents and start gifting what’s predicted to be trillions of dollars over the coming decades. Helping to pay for a grandchild’s college education can bring great personal satisfaction and is a smart way for grandparents to pass on wealth without having to pay gift and estate taxes. So what are the best ways to accomplish this goal?