by Matt V. Fiamengo
Personal Financial Representative
Allstate Financial Services, LLC
For most parents, keeping life squared away can be challenging, considering their family and career obligations to their children and their aging parents, can easily feel like they're juggling three fulltime jobs. How can you make it all work without feeling torn between competing priorities? In every area of your life, planning can help you develop strategies to best use your time and financial aid.
Raising Children
All parents want the best for their children, and education fosters success. But with skyrocketing tuition costs, college can seem cost prohibitive. How can you meet the financial challenge? There are many options: scholarships, loans, grants, and financial aid. To round out your plan, start saving what you can as early as you can. You might be surprised at what you can accomplish with a disciplined approach and time on your side. To help you, there are federal tax credits and tax efficient savings vehicles tailored specifically for education, including prepaid tuition programs, college savings plans, and Coverdell Education Savings Accounts (ESA's).
Caring for Aging Parents
While raising families and cultivating careers, parents are often called on to care for aging parents, relatives, and loved ones. If it's not currently a reality for you, it may be in the future, and you will likely face time constraints, as well as an increased financial burden. Most people can't afford to put their work on hold to be a caregiver or to pay for extended care out of pocket. Long-term care insurance can help alleviate these concerns.
With many policies covering home based care, as well as stays in assisted living/ residential care facilities and nursing homes, many people consider a long-term care policy an important component of their retirement plans; they see it as a way to avoid placing a caregiving burden on the next generation.
Insurance can also help you preserve assets and meet your estate planning goals, such as leaving a legacy for children and grandchildren. As with most types of insurance, it is cost effective to obtain coverage before it is needed.
You First Parents often have an inherent tendency to put the needs of others before their own. In terms of financial security, this can be a devastating mistake. In retirement, people tend to draw income from three main resources: Social Security, company sponsored retirement plans, and personal savings.
Unlike the assistance available for college, there are no loans or financial aid for retirement. So again, it's important to save what you can when you can. Contribute to your company's retirement plan and maximize your contributions. In addition, plan for the unexpected. Disability income insurance can help ensure you have a source of replacement income in the event of an accident or illness.
Family obligations can be a demanding second job. With foresight, planning, and professional guidance, you can minimize the emotional and financial stress, and tailor a long-term plan for your specific situation.
Matt V. Fiamengo is a Personal Financial Representative and a Chartered Life Underwriter. For an interview or details on this issue, phone him at (775) 841- 4177 or (800) 474-4846, or e-mail: MattProClu@earthlink.net
Securities offered through: Allstate Financial Services, LLC (LSA Securities in LA and PA) Member NASD & SIPC.