New Child

Protecting your family may be a top priority now. Taking the necessary steps to make sure they're covered and included in your estate plans can ensure they'll be taken care of. It's a good time to review many of your current policies and documents.

Health, Life and Disability Insurance

Your providers should be notified about your new child as early as possible. It’s also time to examine your own insurance needs to confirm your family is covered against all eventualities. It could be a good time to schedule an appointment with your insurance agent to go over options.

Estate Plans

When a new child is born, it may be a great time to review living wills and update beneficiary information. If you decide to list your child as beneficiary, you'll also want to name a custodian to manage money for your child in the case of inheritance, and appoint a legal guardian to care for your child if you're not there.

A new child typically means a change in your spending habits, and good planning today sets the groundwork for years to come. Now’s the time to review your budget.

New Expenses

Food, clothes and toys add to your bottom line. So does daycare, a nanny or other childcare services. If you or your spouse decide to stay home with the baby, that may reduce your income and change your spending ability.

New Tax Benefits

You may qualify for additional benefits like the Child Tax Credit and Child Care Tax Credit. Consider changing your withholding information on your W-4 through your employer and claiming your child on your tax return.

New Life Plans

While much attention may be placed on your new child, don’t forget to budget for your own retirement. Also, it may be time to review your current asset allocations to determine if any changes are needed to keep you on track toward your long-term goals.

Investing for your child’s future may be one of the most important investments you’ll ever make. Taking action now could provide a strong financial foundation for the long road ahead. But where do you start? Here are some options to consider.

Custodial Accounts

A custodial account is an account in which the child is the owner but an adult, known as the "custodian,” manages it until the child is no longer considered a minor (typically 18 years of age, but this age can vary depending on the state).

Education Savings

A Coverdell Education Savings Account (ESA) is an account in which the child is the beneficiary, but a parent or legal guardian manages the account. This account is intended for the purpose of paying for the child’s education. Withdrawals are tax-free when used to pay for qualified education expenses before the student reaches age 30.

IRAs For Kids

Once your child begins earning income, they’re eligible to open a Traditional or Roth IRA. These accounts operate exactly the same as an IRA owned by an adult. The advantage: Your child has many, many years of earning potential ahead.

Visit our College Planner to get a richer picture of the educational costs ahead.

Grow your family with Janus Henderson.

As a Janus Henderson Direct shareholder, you understand the importance of building a strong financial future. As a new parent and leader in a growing family, not only can you help your child understand the significance of saving for the future, you can also share a financially responsible perspective with the rest of your family.

Help Them Recognize the Evolving Landscape

Start a conversation about the world of investing and the simple fundamentals of growth and earnings. Share your desire for long-term financial stability. Should young people become self-reliant in their retirement plans? During a time when Social Security benefits seem to be waning, and pensions are nearly a relic of the past, both young and old could benefit from understanding the importance of long-term savings.

Open The Door To New Possibilities

Online stock market simulators allow for practice trades that build confidence with zero financial risk. Plus, Janus Henderson offers many tools and educational articles that you can share.

If you've piqued their interest with the potential benefits of long-term saving through mutual funds, you can offer them an opportunity to start out on their own.

Anyone living with you or directly related to you can open a Janus Henderson Direct Account. This includes parents, siblings, spouses, children, grandparents, aunts/uncles, nieces/nephews, cousins, great-grandparents or great-grandchild and the same relationships via marriage.