1. Complete or update Estate Planning

As new parents, the most essential estate planning decision revolves around guardianship for your minor children. Who will care for your child if both parents die? This important and emotional decision requires great consideration. However, remember your selection will never be perfect or ideal, no matter who you choose as guardian. You are identifying Option B – the next “best” alternative to one or both parents living.

Additionally, estate planning addresses several other important needs, such as wills, durable powers of attorney, health care proxies and family trusts, when appropriate.

2. Review risk management program

When you bring children into the world, they rely on you daily for survival. You are responsible for the well-being and care of a child, and as a result, your health and safety carry greater importance. To protect the financial security of your family, review your risk management program, including life and disability insurances to ensure adequate coverage. It may be necessary to increase your coverage and change beneficiaries.

3. Set up 529 college savings plan

A 529 college savings plan is as specialized account that enables college savings while offering tax benefits. Money saved into a 529 account grows tax-free, meaning you do not pay tax on any earnings when used for qualified educational expenses.

When holding a newborn, near-term expenses (like car seats, cribs and daycare) accumulate quickly and college may feel like a lifetime away. However, it is in your best interest to start saving as soon as possible, while time is on your side. Open a 529 college savings plan when your child is born in order to hold yourself accountable and start the habit of contributing on a regular basis, regardless of the dollar amount.