Ideas for thanking your family
Although 2020 may have been a difficult year for you, as it has been for many people, you can probably still find things for which you can be thankful – such as your family. How can you show your appreciation for your loved ones?
Here are a few suggestions:
- Invest in your children’s future
If you have young children – or even grandchildren – one of the greatest gifts you can give them is the gift of education. You may want to consider contributing to an RESP.
- Be generous
Do you have older children, just starting out in life? If so, they could well use a financial gift to help pay off student loans, buy a car or even make a down payment on a home. Of course, you don’t have to give cash – you might want to consider presenting your children with shares of stock in companies they like.
- Review your insurance coverage
If you weren’t around, it would leave some gaping holes – financial and otherwise – in the lives of your family members. That’s why it’s essential you maintain adequate life insurance. Your employer might offer a group plan, but it may not be sufficient to meet your needs. There’s no magic formula for determining the right amount of coverage, so you’ll have to consider a variety of factors: your age, spouse’s income, number of children and so on. Also, you may want to consider disability insurance – if you were unable to work for a while, it could cause a real problem for your family’s finances.
- Preserve your financial independence
When your children are young, you take care of them. But you certainly don’t want them to have to do the same for you – so it’s essential you maintain your financial independence throughout your life. You can do this in at least a couple of ways. First, consider investing regularly in your Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) and other investment accounts. The greater your resources during your retirement years, the less you may ever need to count on your family. And second, you may want to protect yourself from the devastating costs of long-term care, such as an extended nursing home stay. A financial professional can suggest a strategy to help you cope with these expenses.
- Create an estate plan
To leave a legacy to your family, you don’t have to be wealthy – but you do need a comprehensive estate plan. You’ll have to think through a lot of questions, such as: Have I named beneficiaries for my registered accounts? How much do I want to leave to each person? Do I need to go beyond a simple will to establish more complex strategies? For help in answering all these issues, you’ll want to work with your financial and legal advisors.
By making these moves, you can show your loved ones, in a tangible way, how much you value them.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones, Member Canadian Investor Protection Fund.
Number of words: 480