Notes from Maternity Leave
Before I went on maternity leave I thought I would be able to focus on personal projects while also getting to bond with my new baby. I know I know. I’m a multitasker- or - simultasker- to a fault. I figured I’d want to do things other than stare at a baby all day. Little did I know. In the first few days of motherhood I looked at my tiny new son’s sleeping face and realized I didn’t want to do anything but focus on him for this time. So, I haven’t. Well, I DIY’d a headboard, I sent birth announcements, and I’ve done a lot of laundry. I’ve worked out exactly two times. I set up Max’s 529 and UTMA accounts. Mostly, I’ve managed to keep my son alive and my house kind of tidy for exactly 100 days. As his naps become a little more predictable I find I have some time to write and think again, and also to take showers.
So, while I’m still on maternity leave, I wanted to send through some bite size money-related notes that you might find useful. These might get turned into full newsletters some day (and if you want to know more, let me know!), but for now, the fragments….
I watched “I Will Teach You To Be Rich” on Netflix and it’s FANTASTIC. Ramit Sethi is a brilliant and compassionate coach and the people he works with are dealing with very real money questions that we can all empathize with. I learned a lot watching the show and can’t recommend it enough.
Once you watch it, his interview with Money With Katie is great. https://megaphone.link/MOBI5128349318
One key technique I’m taking away from him this week is investing in a Target Date Mutual Fund (inspired by this post). These funds are designed to help you work towards retirement - reallocating from aggressive to conservative as you get closer to your target date. There are a few to choose from- Vanguard, Schwab, and Fidelity all offer them. Bottom line- they make it really easy to invest for retirement. HERE is some more info on them.
High Interest Savings accounts are back in a major way. A lot of banks are offering upwards of 4%. That’s AMAZING. Move your rainy day/ emergency fund to an account that will get you some return. Check out Betterment and Apple- both have great rates and are offering some cool tools to help you save. This is not sponsored… just a suggestion.
I was going to write a piece on UTMAs but I don’t know if I need to as most readers here don’t have kids. The TLDR: They are accounts for people under 18 that are managed by an adult until the child comes of age. They are a great tool for saving money for your kids that you don’t specifically want to go towards education (though it can). There are a few reasons to consider opening one - one being way more flexibility in investing options, and the other being if you have generational wealth. If you want to know more about these I can get more into it, but I like I said, don’t want to dive deep if y’all aren’t interested.
Ok ok that being said, if you ARE into this- also know you can open a Custodial Roth IRA for your kids when they make any kind of income- and that money can grow tax free until they retire. If you really want to harness the power of compound interest for them, this is an amazing way to help them get started.
One thing I read early in the new parent experience was “there are no shortcuts in parenting.” I think about it a lot. It helps me not rush his feedings or cram too much into a day. I can’t “hack” my way out - I have to plan carefully and then let things take the time they take. The same is true for money. We have to be slow, methodical, and plan long in advance. The right money choices are probably pretty boring. The “hacks” will most likely end up costing you in the long run. Ugh. I sound like a mom…
Ok that’s it for now and more soon!
xoxo,
Anne Louise
PS here’s a photo of Max being the cutest.
