Friday, September 22, 2006

Financial planning is different for childless couples

When you don't expect to have kids, you plan your financial future differently than you would if you had kids.

When you have kids, you spend 10s of thousands on raising them, educating them, marrying them off and on keeping them healthy, if you're luckky.

And you plan your estate so that your kids will get more of your money than the tax collectors.

But if you have no kids and don't think you will have them, you look at your financial prospects differently.

First you plan for self sufficiency. When you're in your 70s, 80s and 90s, who will take care of you?

Your savings and investments, maybe your pensions.

Parents will be gone. No help from them. Siblings will be gone or will have their hands full taking care of themselves and their kids, grandkids.

You'll be on your own. And you'll depend on paid help—hopefully honest, compassionate paid help—to manage your money and your care.

If you're lucky, a niece or nephew will help out.

So you have to invest for the long term, and you have to save. You have to become financially savvy.

I didn't say financially smart. It's not about being smart, it's about beilng educated, informed and involved in managing your investments, preferably yourself. Otherwise with a financial adviser.

I'll be blogging on investing and planning for the long term when you have no kids to finance or to finance you in your old age.

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