By: Meghan Manas, Office Manager
Adopting our daughter was the biggest decision Eric and I made; not only that, it was an expensive decision that could have affected our finances in the future if we had not planned properly.
In January 2011 the U.S. Department of Health and Human Services published a Cost of Adoption Fact Sheet with the following ranges:
- Public Agency (Foster Care) $0 – $2,500
- Licensed Private Agency Adoptions $5,000 – $40,000+
- Independent Adoptions $8,000 – $40,000+
- Facilitate/Unlicensed Adoptions $5,000 – $40,000+
- Intercountry Adoptions $15,000 – $30,000
Making the decision to become a parent comes at a price regardless of what road you take. But with the help of a Financial Planner at BWFA you can create a plan to not only pay for the adoption but prepare and save for your future children’s education as well as a comfortable retirement for you.
In my opinion, these three steps are the most important as you begin the journey:
Step 1 – Work with BWFA to create (or review) your Financial Plan. Creating your Financial Plan is a careful and precise process. Our experts will look at how much you have in savings, investments, and insurance and how much you have in debt; they will use this information to help you understand the additional cost of starting a family and raising a child and how it will reflect your bottom line.
Step 2 – Work with your BWFA Tax Advisor to understand your tax advantages. Families that adopt domestically or internationally may qualify for tax relief. There are limitations to what qualifies as well as income limits but by consulting with a tax advisor you will be able to know this ahead of time.
Step 3 – Work with BWFA to make sure your estate documents are up-to-date. Plan for your children(s) future; make sure you have guardianship in place as well as your assets are directed to help care for the child.
If not for the help of my colleagues at BWFA, adopting our daughter from Ethiopia would have involved a lot more sleepless nights! Now, we have the sleepless nights thanks to our adorable little princess!!