|
|
|
|
 |
|
Raising a Family
When you're raising a family, investing becomes more important than ever. You'll need to prepare for future expenses, such as higher education, and you'll need safeguards to protect your child's future if something should happen to you.
Things to Consider:
Knowing the extent of your financial obligation
Children cost a lot of money. Such a large financial commitment will take some planning. You may want to sit down with your spouse and a financial professional to establish an investment plan that will help you best meet these additional expenses.
Tying your investment plan to your child's age
Your financial professional can help you develop an investment strategy that fits the age of your child. When your child is young, for example, your larger expenses are far in the future. Therefore, your investment portfolio could include a more aggressive mix of stocks. As expenses such as schooling move closer, you can adopt a more conservative investment strategy in anticipation.
Making investment for your child's education part of your budget
Starting early can provide a substantial advantage. Saving $100 a month every month of the child's life until age 18 would result in an accumulation of more than $60,000, assuming a 10% annual return. If you wait until your child reaches high school to begin saving, you'll not only lose this compounding advantage, but you may need to sacrifice higher stock market returns because you will be investing for a relatively short-term goal. *
Reducing your expenses
A child is a huge financial commitment, but you can shave this expense through careful budgeting. Buying bulk food and handing clothing down to a younger child, are just two ways to help cut your overall expenses. If your budget doesn't allow for investing because of family expenses, you should consider making these kinds of budget cuts. Maintaining your own financial health is critical when you have a family that depends on you.
* This hypothetical example is for illustration only and is not intended to reflect the return of any actual investment. Investments do not typically grow at an even rate of return and may experience negative growth.
Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a qualified professional.
|
|
|
|
Products and services described on these websites are intended for Canadian residents only. Information on these sites should not be considered a solicitation to buy or an offer to sell a security to any person. Persons outside Canada may find more information about products and services available within their jurisdictions by going to Russell's worldwide site, http://www.russell.com.
Legal Information Privacy Policy
Required Sales Disclosure
© Russell Investments Canada Limited 2008. All Rights Reserved.
|
