How to plan financially for your kid’s future
Settling down into your idyllic first bought home (not renting makes a nice change!) with your family is the dream that you cannot wait to turn into a reality. So, when this occasion eventually happens you get so caught up in organizing where your new furnishings will go and what color to paint your baby’s room that you will probably cast aside boring tasks such as planning your future retirement plan.
The future starts now
It may sound like a prospect to think of when you are staggering around with a walker to aid your balance, but in reality starting to think about the future is something that you could do now such as looking into the finer details of a Reverse Mortgage. By using their calculator, you could determine what you could potentially free up cash wise, that is tied into your property’s value. All you need to input data wise, is your marital status, age, location of property and current market value.
The heirs to your property
You want the best for your kid’s future and looking after four of them is certainly no small feat! So, anything you can start to do now will certainly help you in future. Tips on how to save once you have purchased your first home are things you can start to do once you are settled in.
Priorities might include putting aside cash each month and then depositing that into your savings account. You could even invest it into a High Yield Savings account which will return a decent investment once you can access the cash. Usually, the longer you can resist having to withdraw the cash, the better the return could be on your investment.
Applying for a reverse mortgage will not prevent your children from owning the property eventually. Once you die, the heirs will still inherit your family home and it would be their decision whether to sell the property or refinance it. The Reverse Mortgage scheme is also covered under the HUD (U.S. Department of Housing and Urban Development) and the FHA’s (Federal Housing Administration) Mortgage insurance fund.
Open savings accounts for your children
It is certainly a good idea to open saving accounts for your children as well as having family finances in place. This will enable you to put aside cash that you would like to spend on them like college fees in future, and not have to worry about using it for monthly paychecks relating to the home. The added benefits of a child’s saving account include things like no maintenance fees, an ATM card for depositing money (not for purchases), low minimum balance requirements and the highest yields possible.
All these small actions may not seem like much, but they can all contribute to the future well-being and financial stability of your little loved ones, and that is all that matters really when you are a mom.