Newsletter Introduction

By Chris Cassidy, CEO

The best part of my day usually takes place around 7am. I make my two-year-old daughter breakfast and she comes downstairs to read books and eat. I get to read The Very Hungry Caterpillar, Quick as a Cricket, Llama Llama and Elephant and Piggie while she listens and munches on her pancakes and fruit. We get to share funny facial expressions and giggle together. It’s wonderful.

As parents, we like to think about our children’s future, and the happy moments we could share together. I sometimes think about what it might be like dropping my daughter off at college for the first time. How teary-eyed will I get? These thoughts motivate me to diligently contribute to her 529 College Savings Plan each year. 529 Plans allow for tax-free growth and state tax credits, and can be easily managed on-line.

I also wonder what her first job will be. In my teenage years I did everything from farm work to masonry work to sprinkler pipes to basketball camps. One great way to help a child save for retirement is to set up a Roth IRA for them when they get their first paycheck. As with a 529 Plan, Roth IRA assets grow tax free. A one-time $7,000 investment at age 16, earning 8% per year, grows to $446,664 by age 70.

I have the privilege of attending three weddings later this year, and I can’t wait. I absolutely love weddings. I love the food, the speeches, catching up with friends and family and dancing with my wife (even though I am quite possibly the world’s worst dancer). When I attend weddings now, my focus is on the parents’ speeches and the parent-child dances. More than anything, I hope that I can one day walk my daughter down the aisle and share a special dance with her. Unfortunately, weddings have gotten insanely expensive, and paying for them is no small task. My colleague Jeanne Blackmore did a newsletter article on 2503 (c) Trusts and Crummey Trusts as an additional savings vehicle for the next generation. As a result, I set up a small trust for my daughter. Hopefully, it will help pay for a future wedding, so that I can show off my (lack of) dance moves in style.

Although we like to ponder happy future moments with our children, nobody likes to think about dying and not being able to experience these milestones with their kids. However, contingency planning is very important, and one way to achieve this is by designating a guardian as part of a larger estate plan. My wife and I went through this exercise just before the birth of our daughter.

This month, my colleague Livia DeMarchis has written a wonderful article of all the variables to consider when selecting a guardian. While I sincerely hope that my wife and I are around to see our daughter’s school years, working years and maybe even a wedding, it gives me peace of mind knowing we have a guardian in place should something happen to us.