A: With graduation season drawing to a close, many recent graduates are making their first major decisions about the future – where to live, which job to take and how to spend their non-working hours. Stepping out on their own often comes with another big first – being financially independent. While this newfound control can be enjoyable, the added responsibilities may also be overwhelming. If your child is a new graduate, help him or her start off on solid financial ground with the following advice.
Study your employee benefits. For many recent grads, this is the first time they’ve been offered a 401(k), health insurance or the chance to purchase additional time off. Before enrolling in benefits, graduates need to research and understand their options. Gradates should remember that it’s okay to have questions, such as whether they should consider disability insurance or if a plan with a Health Savings Account (HSA) is the right fit. A good place to find information is through the human resources department or benefits provider. They will likely have the resources and staff available to help.
If graduates have questions specific to their financial situation, consider meeting with a financial professional. A financial advisor can provide objective advice and answers to more technical questions. Ultimately, graduates should have enough information and guidance to feel confident making their benefits selections.
Christopher Zarra, CFP®, ChFC®, CFS®, is a Financial Advisor with Ameriprise Financial Services, Inc. in Rockville Centre, New York. He specializes in fee-based financial planning and asset management strategies and has been in practice for 22 years. To contact him, www.ChrisZarra.com, (516)764-0951, 119 N. Park Avenue, Suite 307, Rockville Centre, NY 11570.
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