10 Things Moms Need to Know About Financial Planning - Stamford Moms

Everyone worries about money: Will you have enough money for tuition if your first grader gets into Yale? Should you have spent the extra $300 for the deluxe bouncy house? A financial plan can help provide peace of mind for you and your family.

Caryn Bogatch is a Financial Representative at Northwestern Mutual. She is sharing her top 10 tips everyone should know about financial planning.

1. It’s not just for the rich.

You don’t need to make a million dollars/year to benefit from a plan. Everyone wants to retire comfortably, help their children pay for college, and reduce their taxes. A little planning can make a huge difference in someone’s life. It’s the rare family whose financial health is totally buttoned up. We can identify the chinks in your family’s armor and help fill in the gaps.

2. It doesn’t cost you anything.

Most people think putting together a financial plan will be expensive. I was an attorney, I’m familiar with the $500/hour bills. This is not that! The review and the plan are complementary. In fact, you’re probably leaving money on the table by not taking advantage of all the tax-efficient options available.

3. It doesn’t have to be intimidating.

Most moms I talk to are afraid to take a deep look at their financing. They think it’s opening pandora’s box. However, financial stress only gets worse the longer you put off planning. Once it’s done and you know you have someone you can trust making sure you’re on the right path to meet your goals, you’ll sleep better at night.

4. Your spouse is probably not handling it.

It’s still easy to just assume your spouse has it under control. Trust me, if you’re not involved in the plan, then it’s not under control. I see clients whose husbands worked in the finance industry for decades, but their own finances are a mess. The middle of a crisis is the worst possible time to discover you should have planned better.

5. You’re not getting any younger.

The sooner you start, the easier it will be to reach your goals. Connecticut has some great tax-advantaged college savings vehicles. But don’t worry if you didn’t start yet. We can start now. Also, people don’t realize that they are never going to be younger or healthier than they are right now. That means insurance premiums are going to be the least expensive right now. You want to protect your family and get those policies in effect early when they are still affordable.

6. Your job does not have you covered.

Most people think if they have a good a job, they have enough benefits to protect their family. Employee life insurance policies generally cover 1-3 times your salary (this may or may not include bonuses). That means if you or your spouse die tomorrow, your family will only have enough money to live for 1-3 years before they must start downsizing. Similarly, if you get sick or injured, the typical employee disability plan only covers between 40-60% of your salary (pre-tax). Most people can’t afford an illness, and even if they could pay their bills with half their salary, they are not able to save enough to stay on track for retirement.

7. I will not take away your morning lattes.

Trying to get people to save $4/day by skipping their morning coffee is just silly. I won’t ask you to change your spending habits. We work with your budget to help protect, optimize, and grow your finances. In fact, once you know that you’re saving enough for retirement, it’s easier to spend the difference on luxury items guiltfree.

8. Your “guy” is probably not enough. 

Many people I talk to say they already have a guy. Their guy is usually an investment advisor whose name they can’t remember, or a CPA they meet once a year at tax time. That’s a great start. But that’s just once piece. You need someone watching over the big picture and making sure all the pieces are working together. More importantly, you need someone you can pick up the phone and call when your situation changes to make sure your plan is changing with you.

9. Your earning power is your biggest asset.

When I ask clients about their biggest asset most people will say their house. Your biggest asset is you or your spouse’s ability to work and earn money. This is especially true if only one spouse works. I have insurance on my house, my car, even my cell phone. Your paycheck needs insurance. Even if you never get hit by a bus, most disability claims are due to illness (cancer doesn’t care how carefully you cross the street). You want to focus on recovering, not how you’re going to pay your bills while you are sick.

10. You don’t need a finance degree.

It can seem overwhelming, but it’s only because no one has taken the time to really explain how a plan can help. We don’t want you to just follow our plan blindly. We want you to understand how and why each strategy is beneficial to you and your family.  That’s why so many people trust Northwestern Mutual.

I’d love to chat with you about how we can help!
Let’s get started:

Caryn Bogatch is a Financial Representative at Northwestern Mutual and a Stamford mom with two sons in elementary school. When she’s not working with clients, you can find Caryn on the sidelines of soccer, basketball, and flag football (usually with snacks)!

Caryn Bogatch
333 Ludlow St. Ste 6
Stamford, CT 06902
[email protected] | (917) 974-4872

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