As the cost of raising kids continues to skyrocket, Morgan Stanley is developing new ways to prepare for the unexpected.
Diapers. Daycare. Pre-School. Piano. Swimming. You’re already $80,000 in, and he’s only six.
Raising a child in today’s unpredictable economic climate is nearly 70% more expensive than it was just 15 years ago. In a 2014 report by the USDA, the estimated average cost of raising a child to the age of 18 is a staggering $245,0001. When you add in undergraduate education, a master’s degree, funding a few pipedreams, and support while they find their footing in competitive job markets, that number can approach seven figures.
Today, parents face an overwhelming amount of financial considerations when trying to raise children. How can you support multiple kids entering college around the same time? What are 529 plans? How do you decide where to best allocate and invest your wealth? How much cash should you keep in an emergency reserve?
With so many financial questions to consider, how can you confidently create a long-term plan that anticipates your family’s needs–including those you don’t yet know about?
Morgan Stanley believes the answer lies in three key life planning considerations:
1. Preparing for Expenses
From healthcare to hobbies to a home big enough for your family to grow, the costs add up fast. Today’s parents need concrete strategies that allow you to budget for today, yet comfortably plan for tomorrow.
That’s why working with a Morgan Stanley Financial Advisor can help prepare you for the journeys our lives take. Using a suite of tools that includes goal-specific analysis, your Financial Advisor will work with you to create a realistic, flexible strategy that integrates the various aspects of your financial life, including your investments and cash management needs.
So even if your little daydreamer happens to make Ivy League… you’ll be financially prepared well in advance.
2. Expect the Unexpected
As we all know, having kids means dealing with the unexpected. Planning for unforeseen events allows you to focus on what’s most important: Helping your family succeed and grow.
To safeguard what you’ve built, your Morgan Stanley Financial Advisor can create a detailed risk analysis and goal-protection strategy to help cover your family, no matter what pops up. From insurance to legacy planning to cash management for unexpected events, we’ll customize a plan that strives to cover all of the bases.
Then, once your roadmap is in place, we'll help you monitor your progress and make adjustments in case markets shift, life changes, or your future astronaut decides to become a future brain surgeon.
3. Build for the Future
Preparing for the future means taking care of today while keeping an eye on tomorrow. Guided by a robust discovery process, Morgan Stanley Financial Advisors seek to gain an understanding of your family—the people, activities and values that are important to you—so your needs and your children’s aspirations can be met.
And since your personal plans shouldn’t stop just because you have kids, your Financial Advisor will help create a comprehensive retirement plan so your golden years stay golden even if Junior’s internet startup doesn’t go quite as expected.
Our Financial Advisors start by asking what’s important to you, then draw on Morgan Stanley’s high quality service and eighty years of intellectual capital. By identifying trends before they hit, uncovering actionable investment ideas, and implementing strategies to help safeguard your savings, our Advisors help provide clients with a strong foundation of financial advice.
It begins with a conversation. Contact a Morgan Stanley Financial Advisor today to help you visualize your family’s future and outline the steps to achieve it. After all, little geniuses often have big dreams.