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Finances of Parenthood
Parenthood can be both wonderfully rewarding and frighteningly challenging. As your children travel this long and never-dull road from infancy to adulthood, you want to make sure they are financially secure. We know this is easier said than done – which is where Sentinel can help.
Even if you don't need complex estate planning, explore Sentinel's steps to help protect your family in the event of your death.
While paying for college may seem far away, thinking about the future now now can make your life easier later.
Reassess Your Budget
As your family grows, you may need to make changes to your budget. Living expenses may increase, new expenses may appear and your budget may need to expand to include new financial goals.
Review Your Life Insurance Coverage
What would happen to your children if something happened to you? Life insurance is an effective way to protect your family from the uncertainty of premature death. It can help ensure a preselected amount of money will be on hand to replace your income and help your family members maintain their standard of living.
With life insurance, you can select an amount that will help your family meet living expenses, pay the mortgage and even provide a college fund for your children. Best of all, life insurance proceeds are generally not taxable as income, though the cost and availability depend on factors such as age, health and the type and amount of insurance purchased.
Keep Saving for Retirement
Start Building a College Fund Now
College costs may seem daunting, especially if you're still paying off your own college loans, but you have about 18 years before your newborn will be a college freshman.
By starting today, you can help your children become debt-free college grads. The secret is to save a little each month, take advantage of compounding and have a sum waiting for you when your child is ready for college.
| Child's age now | $100/mo. | $200/mo. | $300/mo. | $400/mo. |
|---|---|---|---|---|
| Newborn | $38,735 | $77,471 | $116,208 | $154,941 |
| 4 | $26,231 | $52,462 | $78,693 | $104,924 |
| 8 | $16,388 | $32,776 | $49,164 | $65,552 |
| 10 | $12,283 | $24,566 | $36,849 | $49,132 |
| 14 | $5,410 | $10,820 | $16,230 | $21,640 |
| 16 | $2,543 | $5,086 | $7,629 | $10,172 |
Table assumes an after-tax return of 6%, compounded monthly. This is a hypothetical example and is not intended to reflect the actual performance of any investment. All investing involves risk, including the possible loss of principal, and there can be no assurance that any investment strategy will be successful.
Need Some Help Planning?
Ready to Start a Conversation?
Speak with one of our Financial Planners today! Sentinel can help you prepare for your family's future:
- Health, wealth and retirement planning
- Life insurance
- Estate planning
- Saving for college
- And other major financial considerations
