We just had a baby!

Children!  There is nothing like them.  They can be our sweetest blessing, as well as our most challenging frustration.  But most of all, they are our greatest responsibility, our most important commitment.  Raising children is not easy.  Most parents would agree that it’s the most expensive, lowest paid hard work there is.

Whether you are a first-time parent or a veteran of refereeing sibling squabbles and who-put-the-empty-milk-carton-back-in-the-fridge inquisitions, parenthood can be simultaneously the most rewarding and challenging undertaking of our lives.

Our children give us gifts only a parent can understand – from sticky-finger hugs and “Can I come?”  Pleas to tag- along on Saturday morning errands, to the unique pain and pride as we watch them prepare for their first dates or our laugh-concealed heartache as they announce that we aren’t to talk to them when their friends are around.

We raise them with a clear goal that we secretly dread will actually take place – that someday, they will be grown, independent, ready to move out into the world on their own … and our work will be over.

As our children travel this long and never-dull road from infancy to adulthood, we nurture them, worry about them, scold them, love them.

Most of all, we try to protect them.  We want them to grow up in a stable world, one in which they are physically safe and financially secure.  Meeting the costs can be a challenge.  According to the U.S. Department of Agriculture, the expense of raising one child from cradle to college entrance in a middle-income family can top $200,000.

Then add college.  The average annual cost for tuition and fees for a four-year public university in the 2009-2010 academic year, reports the College Board, averaged just over $7,000.  That does not count room and board and miscellaneous expenses, which can tack on another $5,000 or more.  The cost for private universities averaged nearly $26,300 per year.  Multiply that times by four, and then by your number of children, and one thing is obvious: Children are expensive.

This is why, above and beyond our day-to-day efforts to provide for our children, we should take some important steps to help protect and provide for their financial well-being:

• Review your life insurance coverage – Make sure that, if something happened to you, your family would not be left without an income.  With adequate life insurance, you can make sure the money would be there to replace your income and maintain your family’s standard of living.  Most of all, with life insurance, you can select the amount of coverage you want, so they can meet their household expenses, pay the mortgage, even provide a college fund for your children.
• Consider purchasing disability insurance – If you become disabled and cannot work, disability insurance can pay benefits – up to 60 percent of your income, in many cases – so you can continue meeting your financial obligations until you are back on your feet again.
• Start building a college fund now – College costs may seem daunting (and they continue to go up each year).  However, if you have a newborn, you have about 18 years before he or she heads off to college.  By starting today, you can help your children work toward becoming debt-free college grads.

Amount of money accumulated when your child turns 18 if you save the following amounts eachmonth (assuming 6% interest)
Child’s Age Now	$100/month	$200/month	$300/month	$400/month
Newborn	$38,735	$77,471	$116,206	$154,941
4	$26,231	$52,462	$78,693	$104,924
8	$16,388	$32,776	$49,164	$65,552
10	$12,283	$24,566	$36,849	$49,132
14	$5,410	$10,820	$16,230	$21,640
16	$2,543	$5,086	$7,629	$10,172
The above do not represent any specific investment product or return and do not factor investment costs, which would lower results.They are hypothetical examples provided for illustrative purposes only and may not be used to project or predict investment results.

• Consider life insurance for your children – By purchasing cash value life insurance when they are young, you can guarantee your children’s insurability for life and actually help protect their children in the future.  Most of all, their policies may accumulate cash values that can someday pay education expenses, provide a down payment on a first home or simply accumulate for any other future need.

Would you like some assistance?  For information about these and other ideas to protect your children, please contact me.  I can work with you to analyze your needs and help you select the protection and other options that best meet your needs and budget.

Once again, congratulations.  Enjoy your children. And remember, just as they are important to you, you are important to them.  Make sure they’re protected financially…no matter what.

Policy loans and withdrawals may create an adverse tax result in the event of a lapse or policy surrender, and will reduce both the cash value and death benefit.  Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.  Securities and investment advisory services are offered through Securian Financial Services, member FINRA/SIPC.  Copyright © Custom Communications 2010.

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Rich Mino, a financial advisor with Del Mar Financial Partners, Inc., works closely with families and small businesses in the Carmel Valley area.  He is passionate about making a difference in his community through financial literacy programs, and focuses on building strong relationships with all of his clients so that he can be a resource to them where needed most.  An active member of the Del Mar Kiwanis, Rich supports his Carmel Valley community through local service projects, and by sponsoring the Builders Club and Key Club leadership programs at Carmel Valley Middle and Torrey Pines High Schools.  In 2012, he is working to implement a financial literacy educational program to help prepare and educate kids with the challenges that they will face as they begin and graduate from college.  He is a registered representative of Securian Financial Services, Inc., Member FINRA/SIPC. Securities dealer and registered investment advisor.  Del Mar Financial Partners, Inc. is independently owned and operated. 12526 High Bluff Drive, Suite 280, San Diego, CA 92130. 438300 DOFU 01/2012

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties.  You are encouraged to seek tax or legal advice from an independent professional advisor.  The content is derived from sources believed to be accurate.  Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.  This material was written and prepared by Emerald. © 2012 Emerald Connect, Inc.

Securities and investment advisory services are offered through Securian Financial Services, membe FINRA/SIPC. Copyright 2010 © Custom Communications Insurance Publishing.

Material in this article may not be reprinted without permission.

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