I am increasingly concerned with the topic of money, especially in connection with family planning and other life-changing events. In this article I share my thoughts on these topics and why they are so important to me right now.
Why I’m thinking about money right now
The topic of money is omnipresent, especially on a financial channel. But recently my perspective on finances has changed, especially when it comes to family planning. I am increasingly concerned with topics such as insurance, investments for children and financial security for the family. What used to be irrelevant to me is now becoming more and more relevant. Today I would like to share my thoughts on this with you.
Family planning and insurance: What you should pay attention to
An important aspect of family planning is the issue of insurance. In Switzerland, health insurance plays a major role. Basic insurance is required by law, but supplementary insurance offers interesting options to cover additional services.
Health insurance: basic insurance without discounts
One thing I learned: There are no discounts on basic insurance. Even if you insure the entire family through one health insurance company, this does not change the price of the basic insurance. This is because discounts on basic insurance are not permitted by law. However, there are ways to optimize costs through additional insurance.
Additional insurance: when it is worthwhile
Additional insurance often offers added value, especially if you regularly use certain services, such as massages or glasses. A simple calculation is important: If the additional insurance costs less annually than the services covered, it is worth it. I broke it down in an Excel spreadsheet and found that additional insurance makes sense for me personally.
It could be different for my wife, as her needs may be different. It is therefore important to consider individually whether additional insurance makes sense.
Life insurance: useful or not?
Another topic that has been on my mind lately is life insurance. Life insurance is often offered in combination, especially in connection with the 3a pillar (retirement provision in Switzerland). But I wonder whether life insurance is even necessary in my situation.
Life insurance and 3a pillar: Who is it worth it for?
I don’t see the point of life insurance for young people without obligations, such as children or partners. However, if a family comes into play, life insurance can definitely make sense to protect the surviving dependents.
I’ve been thinking about whether life insurance will be relevant for me in the coming years if I have children. However, since I have already built an investment portfolio that is close to one million Swiss francs and have investments in companies, I wonder what additional benefit life insurance would have.
Investing for children: How you can prepare for the future right from the start
The topic of investing for children is another one I think about a lot. I want to create a financial foundation for my future children by investing in stocks and ETFs early on.
Depots for children: The optimal solution?
I haven’t found a perfect solution to invest in the child’s name yet. It would be ideal to open a separate portfolio for the child in which I invest in ETFs such as the Vanguard FTSE All-World. Some providers allow this, but often the products available are not optimal for my needs.
If I don’t find a satisfactory solution, I will open a separate account in my name and manage the money for the child in it. This way the investment would be clearly separated and traceable.
Introduce children to finances at an early age
Another important topic is how to teach children to handle money responsibly. In the first few years of life, the topic of money doesn’t play a role, but at some point it becomes important to teach children how to handle money. I’m not sure how best to approach this yet, but it’s a point that concerns me.
General thoughts on the family’s financial future
With increasing wealth comes great responsibility. I often wonder how much wealth is too much to inherit. If my wealth continues to grow over the next few decades, the issue of inheritance will play a role.
It is important to have a plan to use your assets wisely in the long term, both for the family and for future generations.
Conclusion: Financial planning for the family – step by step
Financial security for the family is a complex issue that involves many different aspects. Starting with the right insurance, through investments for the children, to the question of how to teach your own children how to handle money. Each of these points requires individual considerations and considerations.
If you are currently in the situation of planning a family or already have children, I hope that my thoughts have given you some ideas. Financial planning is an ongoing process with no one-size-fits-all answers. Everyone has to find the best path for themselves and their family.
Feel free to write me in the comments what experiences you have had and what tips you can give other expectant parents!
Thomas B. Kovacs (27)since 2015 I have been diving deep into the world of the stock market and sharing every step of my path to financial freedom with you on “Sparkojote.ch”.
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