Parenting young children is no dad joke.

Fatherhood brings an unbelievable mix of emotions – the most joy, stress, pride and frustration anyone can possibly experience within the exact same moment.

And that’s just from picking out little Buddy’s first car seat.

Now that you have your child’s safety properly protected, have you done any planning for their financial future? How should your investment strategy change once you have children?

Moneta Partner Rob Hehmeyer provided some personal finance tips for new dads in the June 4 Town&Style financial advice column “Assets & Answers” by Stephanie Wallace while answering that exact question:

“One finance tip for any first-time parent is to establish a 529 account for your newborn. It’s an education savings plan sponsored by a state or state agency. There also is an option operated by a group of private colleges and universities. Funds invested in a 529 can be used for tuition, books and other education-related expenses at most accredited two- and four-year colleges and universities or U.S. vocational and technical schools. Additionally, individuals may withdraw up to $10,000 in tuition expenses for public, private or parochial elementary and secondary schools.”

“A 529 plan offers several tax benefits. First, contributions grow tax-free. Second, the earnings are completely income tax-exempt at the federal level if the withdrawals are used for qualified college expenses including tuition, fees, room and board, books and supplies. Finally, many states provide an income tax deduction for contributions. If you are the account owner and live in Missouri, you can deduct up to $8,000 ($16,000 if you are married filing jointly) of your Missouri MOST 529 plan contributions when you file your state income taxes. If you are the account owner and live in Illinois, you can deduct up to $10,000 per tax year ($20,000 if you are married filing jointly) of your Illinois Bright Start College Savings Program. Everyone’s situation varies, so be sure to speak with an appropriately credentialed professional before making any tax, legal or financial decisions.”

© 2019 Moneta Group Investment Advisors, LLC. All rights reserved. These materials were prepared for informational purposes only. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. Past performance is not indicative of future returns. These materials do not take into consideration your personal circumstances, financial or otherwise.