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Guest Blogger – New parents, new plans (part 2)

By July 9, 2015No Comments

Guest Blogger – Warwick Jackson – Berkmans Chartered Accountants

Recently, we shared with you some important considerations for new parents. We highlighted the necessity for thorough planning including but not limited to budgeting, income splitting and private health insurances. Here, we turn the spotlight on longer-term issues as your children grow and mature.

Be a role model and plan for the future
One of the best examples we can set for our children is being financially responsible. Smart financial decision-making is not taught at school or within the tertiary curriculum. The number one influence on a child’s financial decision-making is the presence of positive role models in their life. Children will likely repeat the example we set.

There is no better time to sit down with someone to discuss what your goals and dreams for the future may be.  A financial adviser will help you clarify your goals and establish a pathway to achieve these dreams. There is a saying “the best time to plant a tree is 20 years ago; the next best time is today”. Decisions made today can have a massive impact on the life you provide for your family.

Protect your family
What would happen to your child and spouse should a major medical event occur which required significant time off work and incurred costly medical expenses? Even worse – in the event of your death would your family be protected?

Would there be sufficient savings to ensure the family could stay in their home? Would the children’s education be provided for?

This is an area which can often be addressed utilising your superannuation to fund various insurances. It’s a complicated area – so we do recommend you contact our office to assist you to work through this.


Estate Planning and Wills
The arrival of any new family member should be a trigger to review the adequacy of prior Wills. Dying without a Will can have catastrophic consequences.  We recommend your Will be done in conjunction with a review of your family insurances and superannuation. This will ensure the beneficiaries you have identified are provided for in accordance with your wishes and in the most tax effective fashion.

In many circumstances, a special type of Will called a Testamentary Trust can have significant tax benefits whilst also protecting your Estate. We invite you to make a time to sit down with our Estate Planning specialists.

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