Juggling family schedules is hard, but saving and investing should be simpler.
As a mom, you aren't just involved with keeping the family on track and managing the household’s calendar of events. Often, mom is also in charge of the family budget.
Even if you’re not the main financial planner for your family, becoming personally involved in family finances can help you feel more financially secure. That’s according to the 17th Annual Transamerica Retirement Survey of American workers, from the Transamerica Center for Retirement Studies.
Balancing family and finances takes a lot of work. And although we might not be able to help you juggle getting everyone to recitals and rehearsals, here are some ideas to help streamline the financial part of the equation.
In your family life, a goal is when your son or daughter kicks a soccer ball into the net. But in your financial life, the term has a different meaning.
Financial goals should include both short-term and long-term goals. Short-term goals might start with liquid savings like an emergency fund to tap in case of unexpected expenses. Short-term goals might also include those larger purchases you're considering a year or two down the road.
And then there's the long-term side—retirement, college education, and other expenses that may be a number of years or even decades away.
These goals require planning, and planning takes time. But so does preparing for that presentation at work. And the kids can't drive themselves home from practice. Goal planning and investing often gets placed on the back burner. Besides, the front burner is busy boiling pasta for dinner.
Tom Casey, senior manager, guidance product management at TD Ameritrade, says Essential Portfolios, an automated investing solution from TD Ameritrade Investment Management, LLC, can be a way to help working parents gain an idea of their financial goals and how to purse them.
"With Essential Portfolios, an investor can get a recommendation for a managed portfolio online after answering a few questions," says Casey. He says the automated solution can be especially useful for busy professionals as they eye current and future goals, such as buying a home, saving for a child’s education, and retirement.
Just pick a goal—like one of those shown in figure 1 below—follow the prompts, answer a few questions, and the platform will reveal the likelihood of reaching your goal, and offers change suggestions to help you get back on track.. Once you sign up, TD Ameritrade Investment Management provides ongoing management of your model portfolio, leaving you free to juggle the other thousand things on your to-do list.
FIGURE 1: PICK A GOAL, ANY GOAL.
Essential Portfolios guides you through questions that establish individual risk tolerance, target timing, and other relevant facts that help identify a recommended portfolio. Image source: TD Ameritrade Investment Management, LLC.
We all have bucket lists—those boxes we want to tick at some point in our lives. With Essential Portfolios, you can set the parameters for each bucket item. And you can involve the entire family as well, by naming individual goals and tracking your progress toward reaching each goal. Many moms would agree that teaching good money habits—such as setting and working to achieve those goals—can be a valuable life lesson for the family.
You can also use Essential Portfolios to create investment vehicles for the children, like Coverdell accounts to help pay for education, or accounts under the Uniform Transfers to Minors Act/Uniform Gifts to Minors Act. Children can access the UTMA/UGMAs when they reach the age of majority, and use those to expand savings, Casey says.
And what's more fun than that, aside from, maybe, a ballet recital, ball game, or swim meet?
Essential Portfolios uses technology in an interactive user experience to help you pursue your financial goals.
for thinkMoney ®
Financial Communications Society 2016
for Ticker Tape
Content Marketing Awards 2016
Before investing carefully consider the underlying funds’ objectives, risks, charges, and expenses. For a prospectus containing this and other important information about each fund, contact us at 888-310-7921. Please read the prospectus carefully before investing.
investments involve risk, including loss of principal. Past performance does
not guarantee future results. There is no assurance that the investment process
will consistently lead to successful investing. Asset allocation and
diversification do not eliminate the risk of experiencing investment losses.
services are provided by TD Ameritrade Investment Management, LLC ("TD
Ameritrade Investment Management") , a registered investment advisor. Brokerage
services provided by TD Ameritrade, Inc. TD Ameritrade Investment Management
provides discretionary advisory services for a fee. Risks applicable to any
portfolio are those associated with its underlying securities. For more
information, please see the Disclosure Brochure (Form ADV Part 2A).
Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. Morningstar Investment Management LLC provides consulting services to TD Ameritrade Investment Management LLC (‘TD Ameritrade Investment Management’) by providing recommendations to TD Ameritrade Investment Management regarding asset allocation targets and selection of securities; however, TD Ameritrade Investment Management retains the discretion to accept, modify or reject Morningstar Investment Management LLC’s recommendations. Morningstar Investment Management LLC selects securities from the universe of investments made available through TD Ameritrade. In performing its services, Morningstar Investment Management LLC may engage the services of its affiliate, Morningstar Investment Services LLC, a registered investment adviser and subsidiary of Morningstar Investment Management LLC. Neither Morningstar Investment Management LLC nor Morningstar Investment Services is acting in the capacity of advisor to TD Ameritrade Investment Management’s clients. Asset Allocation target allocations are subject to change without notice. Morningstar Investment Management LLC establishes the allocations using its proprietary asset classifications. If alternative classification methods are used, the allocations may not meet the asset allocation targets. The Morningstar name and logo are registered marks of Morningstar, Inc. Morningstar Investment Management LLC is not affiliated with TD Ameritrade Investment Management or TD Ameritrade.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2018 TD Ameritrade.