I am wishing a Happy Father’s Day to all the fathers we are celebrating, whether they are still with us today or exist in our cherished memories.
My father, born in the tumultuous era of the Great Depression in 1915, weathered the worst of the 30s and then World War II. Most of his youth, by today’s standards, would be considered tragically lost. Yet, he learned invaluable lessons on what it means to take care of your family. As I grew up, he instilled in me two fundamental principles that guided him: to protect his family, and to always provide for them financially. Interestingly, he didn’t frequently talk about love, empathy, or kindness – these wonderful traits were always present, even if often unspoken.
Let’s discuss the concept of financially taking care of one’s family. The following points, of course, apply “if the shoe fits you.” Here are some financial points to consider, tailored to different ages and situations:
- If you have children under the age of 18, consider setting up a 529 college savings plan for each of them to help afford their education without incurring massive student loans.
- Make sure you have ample life insurance to prevent your family from having to leave their home or your children from being unable to attend college in case of your untimely death.
- If you own a business, consider incorporating it as an S-Corp or LLC to protect your personal assets, such as your home, from business debts.
- In business partnerships, it’s essential to establish a buy-sell agreement funded with life and disability insurance.
- Begin contributing to your 401(k) or IRA as early as possible and continue consistently.
- Aim to maximize your retirement contributions every year.
- Invest for the future, diversifying across both equity and real estate markets.
- If you’re nearing retirement, explore the various methods to receive your Social Security payments.
- If you’re a business owner, contemplate either selling or passing the business on to family members. There are many factors to consider here, especially taxes.
- Regularly review and update your will or trust.
- Develop a set of financial goals and review them at least annually.
- Plan for a fulfilling retirement by saving enough to enjoy activities like travel, golf, family gatherings, and more. Avoid a sedentary lifestyle filled with excessive TV, especially 24-hour news channels.
- Seek strategies to preserve your savings from potential long-term care expenses.
- Cultivate a habit of generosity toward your family and those in need. There are numerous ways to achieve this.
- Meet with your financial advisor at least once a year. Continually review and refine your financial goals and the course you’re charting.
Have a great Father’s Day and make some cherished memories. If you’d like to discuss how to add some of these strategies to your family’s financial plan – feel free to contact me anytime.
All my best,
Elliot Kallen
