Financial Planning for Newlyweds: What to Know

iQuanti: Congratulations on your new marriage. Getting together with your spouse to talk about financial planning is an important conversation everyone has to have at some point, and there are a number of ways you and your spouse could approach each component of your financial plan.  

1. Decide how to combine your finances 

There are a number of ways you can approach combining your finances with your spouse. Many couples decide to open joint bank accounts so that both partners have equal access to funds. 

When deciding on what sorts of account(s) you want to open with your partner, talk about short-term and long-term goals, and whether or not you want to have any separate accounts for each of you.  

2. Protect each other with life insurance 

You'll want to be on the same page about how to share assets and responsibilities, as well as how to create financial protections like life insurance that support your partner in case something happens to you.  

If you share debt obligations such as a mortgage, it's very important that each of you protects the other from facing the debt obligation alone and other financial hardships. [Text Wrapping Break][Text Wrapping Break]Be sure to understand what the difference is between term and whole life insurance so that you can think both short and long term in terms of your financial security.  

3. Plan for the long term together 

How soon do you and your partner want to retire? Working together to save more, spend less, and combine your finances will ultimately help you reach your goals sooner. 

If you plan to have children, how much of their college expenses will you want to cover? Be prepared to open a 529 for your child sooner rather than later so that the funds have time to grow. 

Also, think about how you want to provide for your family after your children reach adulthood. When you retire, you'll also be thinking about what kind of legacy you leave behind for your family and community. If you have permanent life insurance, the cash value you've accumulated over the years could come in handy during these years. Be sure to speak to a financial advisor about how life insurance can fit into your retirement plans. 

The bottom line 

Talking to your spouse about financial planning doesn't have to be a difficult conversation, and it will likely be an ongoing conversation as your needs and circumstances evolve throughout your marriage. There's not necessarily a one-size-fits-all strategy, but the important thing is that however you decide to embark on this journey together, you support each other, evolve together, and thrive together.  

Source: iQuanti, Inc.


Categories: Personal and Family Finances

Tags: financial planning, newlyweds, personal finance