Families look out for each other. We hold our children's hands as they cross the street, and we set money aside for their college tuition. We support our spouses when they change careers, and we pool our assets to save for retirement. We care for our parents as they age, and we create an estate plan to preserve our assets for the next generation.

1. Estate planning: An estate plan ensures that your assets will be distributed according to your wishes after you pass. It also takes the pressure off your loved ones, who might otherwise be forced to guess at what you would have wanted for end-of-life care -- or who you intended to bequeath the family silver to -- which can cause family infighting. By taking the time to protect your assets through trusts and other legal structures, said Justin Halverson, co-founder of Great Waters Financial in Minneapolis, Minnesota, you can also help minimize taxes for your future heirs and keep your estate out of probate -- the costly and lengthy legal process of settling a decedent's estate.

2. Retirement saving: Putting your retirement savings needs first is also an act of mutuality. How so? By funding your 401(k) or individual retirement account (IRA), you help ensure that you'll have enough saved to cover your living expenses when you retire -- so you don't outlive your assets or become a burden to your kids. Parents who save for themselves before saving for their children's college tuition or helping them qualify for a mortgage are doing everyone a favor. Remember, your kids can always borrow money for college or a house, but there are no loans to cover the cost of retirement.

3. College funding: If your savings are sufficient and you have enough left over to help pay for your children's college education, so much the better. According to the latest data from the Federal Reserve Bank of New York, the average college graduate earns about $80,000 a year, compared with $47,000 for those who attain only a high school education. 529 college savings plans, which offer tax-free growth when funds are used for qualified education expenses, can help you reach your college savings goals.

Permanent life insurance policies can also provide funds for college, since the cash value you accumulate -- up to the amount you've paid in premiums -- can be used tax-free during your lifetime for any expense.

4. Disability and life insurance coverage: According to Halverson, adequate insurance coverage is one of the cornerstones of financial planning and a critical form of protection for those we love most. "To the extent that you have an insurable need, you typically want to have at least enough insurance to match your debt and make sure any final expenses can be covered," he said. "You don't want to leave a bill behind for the next generation." Disability insurance is designed to help cover your living expenses if you become too sick or injured to work. If you or your loved ones depend on your income, a financial professional can help you determine how much coverage you may need.

Families demonstrate acts of mutuality every day. With unconditional love, we make choices that benefit one another. As you continue to provide emotional and physical support, remember that effective financial planning is an essential part of the safety net you create for those you love.



CHRISTINE BURKE IS A REGISTERED REPRESENTATIVE OF AND OFFERS SECURITIES AND INVESTMENT ADVISORY SERVICES THROUGH MML INVESTORS SERVICES, LLC, MEMBER SIPC (WWW.SIPC.ORG). SUPERVISORY OFFICE: 280 CONGRESS STREET, SUITE 1300, BOSTON, MA 02210 TEL: 617-439-4389. CRN202603-3995872