360° Coverage : A Financial Planning Guide For Expectant And New Moms

10 Updates

A Financial Planning Guide For Expectant And New Moms

May 9 2014, 10:38pm CDT | by

For first-time mothers, pregnancy is an overwhelming physical and emotional experience. Aside from carrying up to 40 extra pounds, there’s the constant anxiety surrounding issues like preparing a...

Filed under: news

 
 
 

11 weeks ago

A Financial Planning Guide For Expectant And New Moms

May 9 2014, 10:38pm CDT | by

For first-time mothers, pregnancy is an overwhelming physical and emotional experience. Aside from carrying up to 40 extra pounds, there’s the constant anxiety surrounding issues like preparing a baby’s room, picking a name and dealing with a host of logistical items, including selecting an OBGYN (if you don’t already have one), as well as a pediatrician.

This, of course, is only the beginning. Once the baby is born the level of life complexity only increases, and even with the best laid plans, it ultimately means one thing: Life will never be the same. And, while this may be the last thing in the world that expectant new mothers want to think about, this also means that, financially, life will never be the same either. And that’s why it’s important to deal with a wide range of near, medium and long-term financial planning items months before delivery.

As we head into the Mother’s Day weekend – when we salute the dedication and the sacrifices of millions mothers around the country – here are some key things that every expectant mother, especially first-time moms, should be thinking about from a personal financial planning standpoint:

**Returning to work – Mothers should keep an open mind. Even women who have every intention of returning to work after having a baby can have a change of heart once it is born. Working mothers should have a contingency plan that builds in all possible outcomes – digging deep to figure out what becoming a stay-at-home mom would mean for their family.

**Maternity leave – While some mothers ultimately decide to stay home and raise their children, not everyone will have that option for financial reasons. Given that an increasing number of women are the chief breadwinner for their families, this is happening more and more. In such cases, it’s important to take the maximum amount of maternity leave possible. No matter how committed someone is to their career, they should consider this: It’s much harder to extend leave than it is to come back early.

**Childcare – Finding suitable – and affordable – child care options can take time. Many parents experience enormous sticker shock when they find out how much it will cost to put their child in day care or hire a nanny. That’s why, when it comes to searching for childcare, the sooner, the better.  Even mothers who plan to stay at home with their children should do very thorough due diligence on child care. Remember: It’s better to have and not need, than to need and not have.

**College Planning – Parents who get a jump start on saving for college are far more likely to have the means to cover most, if not all, of their child’s tuition. If current trends continue, 18 years from now college costs will range from merely very high to astronomical. Above all, consider setting up a 529 plan as soon as the child is born. This is a simple and easy way to set aside money in an education-targeted way. These accounts grow on a tax deferred basis, while the distributions are free of federal taxes as long as the proceeds are used to pay for higher education.

**Life insurance –  Many don’t know that it is more expensive to obtain new life insurance or expand existing coverage after the first trimester. This is because many women develop gestational diabetes in the later stages of their pregnancy, which means they are technically categorized as a diabetic for insurance purposes, leading to more expensive premiums. While the premiums drop after the baby is born (as the condition will go away), not actively preparing before the end of the first trimester is likely to result in higher costs.

**Wills, Trusts and Estate planning – Everyone who has or is expecting a child should have a will. No exceptions. The same goes for having a trust and an estate plan. Moreover, first-time parents may sometimes have other relatives named as beneficiaries for certain investment, insurance and savings vehicles. This means that parents must ensure that they go through all forms in connection with their personal savings accounts, retirement plans, investment accounts and insurance policies to explicitly designate their spouse and children as the beneficiaries. Otherwise, there’s the risk that such funds could get tied up in probate, even if the will is clear as to who should be heir to the estate.

Having a baby is perhaps the most rewarding and exciting time in any mother’s life, but the changes swirling around them can make anyone’s head spin. As a result, new moms may have had neither the time nor emotional bandwidth to think seriously about many of the above financial planning issues, much less deal with them.

That’s why it’s crucial to enlist the help of a qualified professional. By getting the necessary support to take ownership over issues that are controllable, it will make it easier for them to deal with the ones that are not.

Winnie Sun is Founder and Managing Director of Sun Group Wealth Partners (www.sungroupwp.com), an independent wealth management firm based in Irvine, California, with approximately $150 million in brokerage and advisory assets under management.

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Dat ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over R ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mo ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM2 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) to ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

OPEC daily basket price closes lower
Vienna, July 31 (IANS) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) stood at $105.21 a barrel Wednesday, against $105.44 Tuesday, according to the OPEC Secretariat.
 
 
Ebola outbreak not a global threat: Report
London, July 31 (IANS) The deadly Ebola virus does not pose a global threat, a latest report has claimed, adding that as long as the virus continues to infect people in Liberia, Guinea and Sierra Leone, there is small risk of more long-distance export of the disease.
 
 
Getting chatty with meow chat
New York, July 31 (IANS) A new chat app is on the prowl, stalking users on social networks like a cat.
 
 
Mexican journalist murdered at home
Mexico City, July 31 (IANS/EFE) A Mexican journalist was found stabbed to death in his home in the town of Guadalupe in the country's north central Zacatecas, sources said Thursday.
 
 
 

Latest from the Network

Indian wrestler Geetika gets silver
Glasgow, July 31 (IANS) India's Geetika Jakhar had to settle for the silver medal after she lost the women's freestyle 63 kg final to Canada's Danielle Lappage in the 2014 Commonwealth Games at the SECC Hall here...
Read more on Sport Balla
 
Yogeshwar wins fifth wrestling gold for India
Glasgow, July 31 (IANS) Olympic bronze medallist Yogeshwar Dutt won the fifth wrestling gold medal for India beating Jevon Balfour of Canada in the final of the men's freestyle 65kg category in the 2014 Commonwealth...
Read more on Sport Balla
 
China launches fresh drive against corruption
Beijing, July 31 (IANS) China's top anti-graft agency has sent 13 inspection teams across the country in its fresh crackdown on official misconduct. Inspectors will oversee the performance of officials in the...
Read more on Politics Balla
 
Dipa first Indian woman to clinch CWG gymnastics medal
Glasgow, July 31 (IANS) Dipa Karmakar became the first Indian woman and the second person from the country to clinch a historic Commonwealth Games medal in artistic gymnastics when she won the women's vault bronze at...
Read more on Sport Balla
 
Drew Barrymore's half-sister death an accident?
Drew Barrymore's half-brother doesn't believe their half-sister committed suicide. Jessica Barrymore was found dead in her car by a neighbor on Tuesday (07.29.14) with pills reportedly scattered around her but John...
Read more on Celebrity Balla
 
Kate Hudson: 'Heath Ledger was best kisser'
Kate Hudson says Heath Ledger was her best ever on-screen kiss. The 35-year-old actress - who has sons Ryder, 10, from her marriage to Matt Bellamy, and Bingham, three, with fiance Matt Bellamy - has shared smooches...
Read more on Celebrity Balla
 
Cameron Diaz and Benji Madden considering marriage?
Cameron Diaz and Benji Madden have ''already discussed marriage''. Although the 41-year-old actress and the 35-year-old musician have only been dating for a few months, they are already practically living together and...
Read more on Celebrity Balla
 
Conan O'Brien won't follow celebrities
Conan O'Brien refuses to follow celebrities on Twitter. The 51-year-old talk show host randomly selected one person to follow in 2010 - fan Sarah Killen - and has yet to add to his list, often refusing celebrity pals...
Read more on Celebrity Balla
 
Indian wrestler Babita wins gold
Glasgow, July 31 (IANS) Indian wrestler Babita Kumari put on a stunning show to win the gold medal beating Canada's Brittanee Laverdure in the final of the women's 55kg freestyle category in the 2014 Commonwealth Games...
Read more on Sport Balla
 
Muslim priest killed in China, two arrested
Beijing, July 31 (IANS) At least two suspects were shot dead and another arrested after an imam of China's largest mosque was murdered in a city in the country's restive Xinjiang region, police said Thursday. Jume...
Read more on Politics Balla