Do you have kids? Do you have plans for your kids to go to college one day? Have you looked at how much college is going to cost you for just one kid? College is a big investment, but it is a good one. If you begin planning for this huge expense when your kids are young, you won't take much of a hit when the day comes that your teen packs his or her bags and heads off to start a new life at school. This blog will provide you with several ideas and tips that can help you find ways to plan for your kids' college tuition.
Do you want to change career paths midway through your life? More and more Americans are changing their trajectories to better align with their financial goals and personal interests or passions. But along with this job change, you should consider how you may want to change your financial plan. What sort of changes might your new path warrant? Here are five of the most important tips to consider when changing your financial plans.
1. Make Budget Changes
If you go from an established career to a new one, one of the biggest changes you're likely to see is in your monthly income. Draw up a new monthly budget that fits your new circumstances, and be sure to err on the side of caution until you get established.
2. Add Education Costs
Changing to a new career often calls for education. This could mean going back to school for a new degree or a more advanced one. Or it could just mean doing some intern work or building a few new skills. Either way, you may need to divert money toward your own educational costs.
3. Learn About Retirement Plans
Different careers offer different benefits, including retirement benefits. You may go from an industry that offers pensions and defined benefit plans to one that relies on 401(k) plans. Or you might be headed to a more generous career. Assess now how this might change what you need to save for the future and how best to create a retirement income stream.
4. Plan for Different or No Insurance
Can you keep your health coverage as you start a new job or shift careers? Those returning to school full-time may not have access to employer coverage anymore, and those who take a lower-paying entry or mid-level job may have less or no insurance. Your financial plan may need to be altered to cover this gap.
5. Adjust Long-Term Savings
Most people will see some type of short-term income changes from a midlife career shift, but some may see a long-term difference as well. If you choose a career that fits your passions, you must be prepared for it to not pay as well. On the other hand, if you leave behind a struggling career to take a secure corporate gig, you may be paid much more. Be realistic about earning potential and how it will change long-term planning for vacations, emergency funds, sinking funds, kids' college, and charitable donations.
Want to know more about adjusting your overall financial plan to accommodate career changes? Start by meeting with a financial planner in your state today. The sooner you reshape your goals and budgets, the better you'll stay on track during this transition.
Share24 August 2021
