Wealth

Case study: securing your financial future

Discover the steps two new parents, Jen and Nick took, to set themselves up for the future.

With a new baby’s future to think about as well as their own, Jen and Nick wanted to ensure their finances offered the whole family security.

Securing the future

Like many first-time parents, Jen, 36, and Nick, 47, have found themselves rethinking their financial priorities once their baby arrived. While Jen’s initial plan was to return to work part-time after her maternity leave, staying home longer is appealing — but it would have an impact on their finances and Jen’s super. The couple is also concerned about what would happen if either should fall ill, have an accident or pass away — they want to be sure the family’s financial future is secure.

Help with planning

Unsure of the best course to take, Jen and Nick decided to speak to a licensed financial adviser. They wanted to learn how they could set themselves up securely in case of an unexpected event, and to make sure that their strategies for optimising their financial position were sound.

Identifying opportunities

After listening to their needs, objectives and concerns, Jen and Nick’s adviser recommended they consider:

Starting an education savings fund for their baby, which gives them the option to change direction as their child’s education needs become clearer.
Contributing a percentage of Nick’s salary to Jen’s super while she stays home with the baby.
Reviewing their home loan and get the best deal on their mortgage. They could also consider features such as an offset account which provides flexible access to funds while helping to reduce loan interest.
Reassessing their risk insurance cover to ensure they have the right level of financial cover if something unexpected was to occur.
Preparing separate wills so their assets are properly protected, and the remaining partner is cared for.

Father and mother holding and smiling at their baby

Increased peace of mind

Jen and Nick felt nothing but relief after receiving the advice. “It isn’t easy to think about worst-case scenarios, so it was tempting to put off things like finalising our enduring power of attorney, wills and insurances. But it’s a huge relief to know everything is in place,” Jen says. Jen and Nick are now confident they’ve explored all the options and made the right decisions to secure their family’s financial future.

Tips for protecting your family’s financial future

We all want the best for our family — and that means making sure their financial future is secure. Listed below are some tips which can help you decide on the steps you need to take.

Tips to secure your family finances

Talk to a licensed financial adviser

A licensed financial adviser will help you to clarify your financial objectives, then create a personal plan to help you achieve those goals.

Check your home loan

It’s a good idea to check from time to time that your home loan is still the best one for you. Interest rates, your assets and your circumstances are all bound to change and, when they do, a switch could save you thousands of dollars in interest over the course of the loan.

Secure your children’s education

There’s peace of mind in knowing you can afford to give your children a good start in life. A specialist investment product, like Australian Unity’s Lifeplan Education Bond, could provide important benefits, along with the funds you need to give your child a great education.

Contribute to super as a stay-at-home parent

If you’re a mum or dad who has decided to stay home to look after the kids, don’t ignore your super. Research whether you or your partner can make additional contributions into your super fund.

Review your insurance

Would your family be able to cope financially if you or your partner died or were unable to work? Insurance can provide the protection you need but, when a baby comes along, it’s a good idea to confirm you still have the right type and amount of cover. Again, a licensed financial adviser can help.

Make a will

It’s never too soon to make your wishes known by writing a will. An estate planning lawyer can help protect your loved ones from unnecessary stress and worry and help ensure your wishes are carried out as closely as possible to what you stipulated in your will.

Further help and information

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