December – Planning for Your Family’s Future

2024 may be coming to a close, but as the great pop philosopher Smashmouth once said, “The years start coming, and they don’t stop coming.” This month, we will dedicate 30 minutes each week to considering the future financial needs of each member of your family, from your parents to your children. We will focus on easy, actionable steps to address key areas like education, retirement, and elder care.

Week 1: Review Your Children’s Education Expenses
Take 30 minutes to look over your plan for your children’s education. Look at any college savings accounts and 529 plans to review how much you’ve saved so far. If you haven’t started saving, use an online college expense calculator to get a general idea of what your goal should be. If you’re behind, consider increasing contributions or automating deposits each month to stay on target.

Takeaway: It’s never too early to start saving for your child’s future, and if you’re reading this and haven’t started, start now!
Next Week: We’ll evaluate your retirement plan and see if you’re on track to meet your goals or need to make adjustments.

Week 2: Assess Your Retirement Savings and Goals
This week, review your 401(k), IRA, and any other retirement accounts to make sure you’re on track with your saving goals. Consider increasing your contributions by 1%, and be sure you take advantage of any matching contributions your employer offers. Use our retirement calculator to find out if you’re saving enough for the lifestyle you hope to have in retirement.

Takeaway: Slow and steady wins the race. Be consistent and save what you can for your future self.
Next Week: We’ll explore how your parents’ financial plans may impact you. Are they adequately prepared for retirement, or will they need your help?

Week 3: Check In on Your Parents’ Financial Plans
Talking to your parents about their financial plans and well-being may feel taboo and uncomfortable, but it’s necessary to know if they will need financial support from you in any capacity. Understanding their financial situation now can help you prepare for future needs, whether healthcare or living expenses.

Takeaway: While having an open conversation with your parents about their financial plans may be uncomfortable today, it will help you both be more comfortable in the future.
Next Week: We’ll wrap up the month (and year) by organizing important family documents to facilitate future planning.

Week 4: Organize Important Family Documents
Do you know where your family’s essential documents are stored? Would you or your spouse know where to find your wills and insurance policies in an emergency? How about medical records? Or your power of attorney documents?

These items should be stored in a secure, easily accessible location that you and a trusted family member or friend know about. This will ensure that one more stressor isn’t added to anyone’s plate during a major unexpected event.

Takeaway: When an emergency happens, knowing where to locate necessary, important documents is essential. It is the last thing you or a loved one should be stressed about when grieving or in shock.

Congratulations!

You’ve completed our Freedom 30 plan! You’re building a strong foundation for your family’s financial and personal well-being. These proactive steps ensure a secure future for you and your loved ones and can help you face the coming year with confidence and peace of mind. We invite you to continue this journey by revisiting previous action steps and building on your progress.