A Financial Planning Guide For Fathers
Father's Day is a special occasion celebrating the man of the family, and also presents an opportune time for fathers to reflect on your financial planning needs. With the right solutions in place, you can enjoy peace of mind as you accompany your children on their life journey.
When you have your first child:
Welcoming your bundle of joy is an important milestone in life. It also calls for a professional review of your insurance portfolio to uncover the existing protection gaps.
If you are the sole breadwinner, it is important that you evaluate your life policies and consider increasing your coverage. Ensure your wife and child's financial and healthcare needs are well taken care of, especially if they are wholly dependent on your income.
A professional financial services consultant will also recommend you to purchase a disability income protection plan, which comes in handy should you be unable to work due to a disability.
When your children are of school-going age:
Being a loving father, you hope to give the best to your young ones. A 2017 survey revealed that Singapore parents placed their children’s education as their top financial priority and also ranked third globally for their education expenditure.* Thus, saving for your child’s education will be an important financial goal at this point in your life.
With financial planning, it’s always a case of “the earlier the better”. Harness the benefits of compounding interest and start saving early for your children's education. This should happen in tandem with your retirement planning so you and your spouse can enjoy your golden years in the way you want to. If you already have an investment portfolio, review it regularly and align your investment risks with your short-term and long-term financial goals.
You may also want to take up an education endowment plan as a low-risk method of saving for your child’s tertiary education.
When your children are all grown up:
Leaving a legacy for your children is one of the greatest wishes a father could have. Carry the fruits of your labour into the next generation by ensuring you have planned your estate in advance.
One of the simplest ways to do so is to write a detailed will that clearly states your wishes. You can also consider using other planning instruments such as a Lasting Power of Attorney (LPA) and an Advance Medical Directive (AMD).
Happy Father’s Day and may you enjoy every moment of fatherhood! Our financial services consultants are here to offer a helping hand should you need more clarity and confidence in making your financial decisions.