THE announcement of the new Royal Prince’s arrival this week has led to a whirlwind of publicity around the newborn; however, whilst most new parents will not receive the media attention, they will still be under their own special spotlight.
Starting a family gives new parents a number of priorities, with financial security for the future being at the top of the list.
Leading financial advisors, McHardy and Burnett, is urging its clients to begin thinking about their financial security from the early stages of starting a family as it can offer them the security they need to provide for their children as they grow up, enabling them to pay for amenities such as school fees later down the line.
Director of McHardy and Burnett, Richard Fletcher, said: “Planning for our children’s future is often overlooked; however, we believe such planning should commence as early as possible.
“Protecting your family income, ensuring you have provision in the event of illness or death as well as saving for your children’s future education should all be reviewed in order to ensure you and your family’s long term security.”
Here, they offer the following advice:
Having a child inevitably brings the need for greater financial protection, especially where one parent opts to take a break from employment. So it makes sense to review the level of cover under your life assurance, critical illness and income protection arrangements.
School fees planning
Many parents now consider the option of sending their children to private schools, as well as appreciating the need to start planning for university or college fees and costs. When doing so it is important to start making provision at the earliest opportunity.
Saving or investing for your child
Very often parents or grandparents wish to start saving for their new addition to the family by making regular or ad hoc payments into a savings vehicle. It is important that the savings vehicle(s) chosen is as tax efficient as possible, to provide the best possible return.
As families grow, it is inevitable that you will need to consider moving to a bigger property or extending your existing property. Given the multitude of mortgage offers available on the market and the large range of fees that apply, it is recommended that you seek independent mortgage advice.
Maximising tax efficiency
Where one parent opts to take a longer break from employment following the birth of a child, it is important to consider holding investments or savings in the name of the lower rate taxpayer or non taxpayer to reduce or even eliminate tax paid on interest or dividends.
It is now possible for a parent, grandparent, aunt or uncle, or indeed anyone, to start paying into a stakeholder pension for a child. Starting a pension as early as possible gives your child’s pension pot more time to grow, and will provide an important boost to their pension planning, allowing them to reap the benefits later in life.
The Aberdeen-based firm has been providing the city with financial solutions since 1987 to a mix of corporate and private clients over a range of wealth management-related services including pensions, savings and insurance and it has an expert team of advisors based at its Bon Accord Crescent premises.
McHardy and Burnett has a team of qualified financial advisors on hand to offer advice on a range of services. To find out more, call 01224 578250 or visit www.mchb.co.uk
Issued by Frasermedia Ltd on behalf of McHardy & Burnett.
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