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Getting Married
Marriage represents one of life's most exciting turning points. It means that you'll be making many future decisions as part of a partnership instead of as an individual.
While the time leading up to your marriage is probably unusually busy, you should make time to discuss finances with your spouse-to-be.
Things to Consider:
Merging your finances
There's a lot to consider. Will you have joint or separate accounts? How will you manage your investments? Have you updated your insurance policies to reflect your new beneficiary? Probably the best way to merge your finances is to make a comprehensive list of your assets, insurance policies, and other financial materials and review each one together. As an added benefit, you'll both become more familiar with your assets.
Agreeing on spending habits
Before your marriage, you may have paid relatively little attention to your spouse's spending habits. Perhaps you know that your spouse is much less frugal than you or has credit cards that are always charged to the limit, but it was of little concern.
Now it's time to merge those spending habits. During your marriage, you'll need to build your financial security together and that probably requires consensus on some significant items, such as levels of credit card debt.
Budgeting your money
For many people, the word "budget" brings resigned sighs or loud groans. Too often budgets are associated with establishing tough financial austerity programs. Budgets are necessary, but not necessarily evil. The tightness of your budget strictly depends on your personal financial situation. However, no matter how high your annual income, it's smart to establish a budget. You'll soon need money for long-term goals, such as raising a family or buying a house, and budgeting is a good planning tool to help you invest wisely and reach your goals.
Coordinating your retirement savings approach
Risk tolerance usually determines how individuals choose to invest for retirement. Some people take highly risky positions with their retirement funds hoping for a little extra money during their golden years. Others may feel more comfortable holding on to what they've accumulated and settling for smaller, less risky returns. If you and your spouse have different philosophies, you may need to consult a financial professional. Ultimately, you'll be sharing in the retirement income you both accumulate. It can be a source of unresolved resentment if half of that money is invested in what one spouse feels is an inappropriate manner.
Considering prenuptial agreements
If you've already accumulated a large amount of separate assets before your marriage, you may want a prenuptial agreement. Of course, this kind of financial planning is complicated and requires professional advice, but you do need to consider the option if your financial circumstances warrant it.
Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a qualified professional.
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