Posted by Neil Shillito

Everyone wants the best for their children, financially or otherwise. Consulting with a financial adviser will help you understand the best way to support them as they grow up.

Making arrangements for your future is one thing, but when you have children this takes on a whole new significance. Suddenly, your choices have far bigger implications. Situations that you may have put up with when it was just you are no longer acceptable. A financial adviser will be able to help you plan for your future and your children’s in the most effective way.

Education

Although financial advice is usually a specialist area dealt with by qualified experts, your children will benefit most from the kind of advice that you can give them personally. Despite widespread criticism, schools in the UK do not routinely teach financial literacy. Your children will be taught maths, including lessons about indices and repeated multiplication, but there is no requirement to broach the subject of compound interest. This, more than anything else, will influence how they see money, how they view debt and whether they understand the importance of long-term investment.

Whatever other financial advice you obtain, make sure that your children know what to do with the money that you pass onto them. A little education early on will make a huge difference for the rest of their lives.

Looking after yourself

When it comes to looking after your children, a good financial adviser will probably want to make sure that you have a number of financial products in place. After all, if you are well taken care of, your children will benefit too. You will always have certain outgoings, and making sure that these are as low as possible ensures that you have disposable income to spend on your children or to invest for the future. Your mortgage will probably be one of your largest outgoings, and good advice may be able to reduce your monthly payments substantially.

Beyond this, you should gain financial advice on the types of insurance you should purchase. Life insurance is important to make sure your dependants will be provided for in the event of your death, but depending on your circumstances there may be other forms of cover you should buy – critical illness insurance, health insurance (for the whole family) and so on. If you own your own business or are self-employed, the list extends further and you should discuss with a financial adviser exactly what forms you need. Then there is your pension. Investing early on for retirement means that your children won’t have to pick up the bill for your care – a problem that is becoming acute as rising elderly care costs combine with reduced opportunities for young people due to the financial crisis.

Investing for your children

Finally, you will want to secure financial advice about specific investments for your children. These can take various forms. The government used to provide money for child trust funds – investment vehicles that lasted until your child’s 18^th birthday. These have now been replaced by Junior ISAs, although there is no government funding for these. Like regular ISAs, the interest on Junior ISAs is tax-free. With both the CTF and Junior ISA, though, you have no control over how the money is spent. You may have earmarked it for university, but on their 18^th birthday they are given access to the money and can do what they want with it.

If you prefer to retain control over investments for your children’s future, you can discuss with your financial adviser the best and most tax-efficient ways of doing this. You could consider a stocks and shares ISA of your own. These can be used to invest in shares but also various different funds. However, since this is a fairly specialist area you will probably want quite detailed financial advice to ensure that your investments are the right ones for your risk profile and timescale.

Neil Shillito is co-founder and director of SG Wealth Management, a forward-thinking, FSA regulated company offering impartial, fee-based financial advice Norwich and featured regularly on Asset.tv

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Posted by, Amanda Green

City living is where it’s at if you hope to find steady work in this economy. But that doesn’t mean being a city dweller comes cheap. Property tends to be more expensive and so are goods and services. In order to successfully survive urban life without going bankrupt, you need to become savvy at saving money. When it comes to the particulars of residing in a metropolis, the following are five helpful hints at going about things the most economically responsible way possible:

Buy a hardy home: As one urban Texas house flipping couple I met once said: “We buy houses Dallas Texas will never see collapse in a hundred years.” One benefit to city property priced more per square foot is that older structures tend to be built out of stronger materials. Compared to the Spackle-and-particle board assembly of newer suburban homes, buying a sturdy urban domicile is probably a smarter long-term investment, especially when you consider how easy it is to rent out city property.

Stick to public schools: Many city dwelling middle-class families opt to put their kids in private academies out of fear of sending their children to infamously hellish inner city schools. But the drawback to this strategy is of course the cost; public school is free, private school costs you. Instead, strive to get your kids into a magnet school, or vet the nearest public option before completely giving up on sending your kids to school for free.

Own as little personal property as possible: It’s probably not smart to own an expensive boat or motorcycle and keep it within city limits, as big-city personal property taxes tend to be noticeably higher than those in smaller communities. You probably can’t lose the car, but try and own as little costly property as possible if you plan on becoming a city dweller.

Drive as little as possible: Virtually all major American cities have some form of public transportation. Take advantage of it as much as possible, or walk to as many locations as you can. Don’t wear out your car by driving back and forth through a centralized area when cheaper or completely free alternatives exist.

Experience free free time: You won’t be able to find a free golf course anywhere, but just about every American city tends to have a park, playground, and tennis courts within walking distance from every neighborhood. Instead of sitting at home watching PPV, take advantage of the multitude of activities that big cities have to offer. Chances are a decent number of them are free.

City living isn’t cheap, but due to a shrinking job market and a sour overall economy it’s becoming more and more necessary. In order to survive the drastic increase in spending as well as the hustle and bustle itself, stick to city-centric ways to save. It can be the difference between you seeing big city success or suffering through urban strife.

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Posted By Laura Rossman of Longevity Alliance

If you are a baby boomer you probably know firsthand about the costs of long term care from helping your parents or friends.

And here is what you’ve found out: it’s confusing; it’s expensive and it’s emotionally exhausting. You struggle through; you figure it out because there aren’t many options.

So, here is the really big question that can change your financial future and save your children the stress you are going through…

What have you done about long term care planning for yourself?

Here are the facts:

• More than two-thirds of people over age 65 will need some level of long term care as they age.
• Your nest egg will be at risk to pay for long term care expenses.  Medicare does not cover long term care. Medicaid long term care services are only available to low income seniors.
• Long term care is expensive. A new report from Northwestern Mutual says the average cost of hourly home health aides is between $20.65 – $23.98; assisted living facility private room costs an average of $3,3372 per month; and, nursing homes cost an average of $246 per day or $89,812 per year.

So, the first thing you need to do is a plan for long term care.  Who will provide care, what kind of resources do you have available, do you have family close by who are able to help, and how do you feel about asking your children to care for you? It should be part of your retirement plan.

One option to consider is long term care insurance. It covers the costs of care when you can’t take care of yourself.  This is not health insurance.  It pays for help with activities of everyday living – getting dressed, preparing meals, moving around – referred to as custodial care.  It is flexible and pays for care at home, in a nursing facility or assisted living community.

Here are four tips to consider when shopping for long term care insurance:

1. If you plan to move in retirement, buy coverage for where you will be living.  Costs vary widely depending on the part of the country.  Don’t overbuy. Select a coverage amount for where you will reside.
2. When you need long term care your regular expenses will change.  You’ll be able to shift some funds to cover long term care on your own, so may be able to share costs with the insurance company.  A $100 a day policy can make a big difference to those who are helping care for you!
3. Buy long term care insurance when you are younger and healthy.  Most people buy in their 50s when the premiums are less.
4. Compare plans and prices from 2 to 3 companies.  Costs can vary significantly.  Ask about the financial stability of the company and its reputation for paying claims. Buy from someone experienced in long term care insurance.

Facing long term care costs now, and can save your family emotional and financial stress and strain in the years ahead.

Laura Rossman heads up marketing and communications for Longevity Alliance, an independent national insurance broker who helps seniors compare and find the best long term care insurance for their needs. Laura has been in the health and senior care services industries for over 20 years.

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