How to Get Married Financially

Getting married can be a whirlwind experience. Between venue searching, trying on dresses, renting tuxes, assembling the bridal party, booking a DJ, and cake tasting – it can be easy to forget all that getting married means. Underneath the ring exchange and sharing of vows, there is a potentially life-long financial contract which you should also be prepared for.

Before you marry the love of your life, you need to get financially engaged with one another. Right now, disagreements over money are a top reason for separation and divorce. You have already popped the big question, and now it is time to ask a few more.

Here is a list of financial questions you should ask before tying the knot:

  1. What does the ideal marriage look like and how does it fit into our career goals?
  2. What is our savings plan going to look like? Our budget?
  3. Should we keep our finances separate, or join them together?
  4. Who will be responsible for making sure which bills get paid?
  5. What types of insurance will we need and how will we pay it?
  6. Do you have any loans or debt that needs to be paid off?
  7. Do you want a family, and if so – how big do you want our family to be? When should we start saving for college?
  8. What does our ideal retirement look like and how do we get there?

There are many keys to a successful marriage, but together you can make sure you leave out the poorer in “for richer or poorer.” Openly discussing your finances can keep you happy, healthy, and wealthy in your marriage.

Article Source: Tyler Atwell for CUInsight.com

5 Money Subjects You Need to Talk About Before Tying the Knot

Bursting the love bubble by sitting down and having a serious talk about finances is never fun, but open communication about money is a good idea in any relationship.

Since it’s wedding season, those thinking of tying the knot should have a serious discussion about money at some point, preferably before you move in together or actually get married. Even if there are no plans to combine finances completely, it’s still good to clear the air and see if you and your future spouse are on the same page.

Here are five things to talk about before moving forward:

1. Debt

One of the biggest things you need to talk about is debt. Get it out there. Even if you won’t be sharing finances, one person’s debt can have a profound impact on household finances. If you want to buy a home together or if you want to do other things, someone’s obligations can hold you back as a couple.

Have an honest talk about your debt levels, and see if you can make a plan to pay down the debt. Even if you don’t share finances, the partner without the debt is going to have to be supportive until the debt is paid off.

2. Credit

Credit goes along with debt, but it isn’t exactly the same thing. While it’s not vital that your partner have a perfect credit score, it is a good idea to see where you both stand, and be honest about the situation.

At some point, if you decide to get a joint loan together (for a car, wedding, or a home), both of your credit scores will matter. Talk about it so you know what you need to do together. If one of you has a poor score, you might have to wait a little longer before you accomplish some of your loan goals.

3. Money Philosophy

This is a bigger deal than you might think. It’s a good idea to know whether or not you have the same money values before you take that next step. Spenders and savers need to be able to come up with a plan to compromise. If you like spending your money on lots of books, and your partner prefers movies, you might need to come up with a plan to make sure you both get what you want at least some of the time.

4. How to Handle Kids and Money

If you think you’ll have kids together (and that’s another conversation you need to have before taking things to the next level), you need to talk about how you’ll handle kids and money.

Do you want to save up for college for them? How will you handle allowance? Extracurricular activities?

These are big questions you need to tackle together so you are on the same page. It’s vital to know early on so that you aren’t unpleasantly surprised later.

5. Retirement

Chances are, you both want to save for retirement. But do you have a shared vision for what that looks like? Before you commit to a long-term, life partner relationship, make sure you talk about how you want to handle retirement. It can be tough if one of you expects to sit at home most of the time, and maybe play golf a couple times a week, while the other wants to sell the house and everything in it to travel the world.

In the end, you need to make sure that everyone is on the same page so that all your money goals are being reached together. Take the time to have a discussion now, so there are fewer surprises later.

Article Source: Miranda Marquit for moneyning.com

3 Ways Money Could Be Hurting Your Relationship

One cause for concern for many is financial issues and how money can put a strain on your bond with your significant other. Here are three ways your finances could be killing your relationship.

Shopping secrets.

Are you spending way more money on yourself than you’re admitting to? It’s good to treat yourself at times (who doesn’t love to splurge?) but hiding it from your partner may cause major tension. If you’re keeping your purchases secret your loved one may think that you’re hiding other things as well. If you feel it’s necessary to keep your shopping habits to yourself, there could be a reason for it. Is your partner worried about your finances while you’re out spending frivolously? Like every relationship issue, communication is key. If there’s something you want to buy, talk about it. If your partner thinks money is too tight for that purchase, respect their feelings and hold back on buying that new handbag until you’re at a place where you both agree your finances are in good shape.

Credit card debt.

Did you enter into your relationship with card debt? If so, make sure your partner knows off the bat how much you’re in the hole. It’s much better to be up front about it than for them to find out later. According to USA Today, the average American consumer has close to $4,000 in credit card debt. Don’t feel bad about what you owe, but be open about your plans for tackling the debt. Talk about the poor decisions you made that put you in debt in the first place and set goals together for setting things right.

Avoiding money discussions.

As mentioned above, communication is incredibly important to a healthy relationship especially when it comes to money matters. Not only is discussing your finances essential but not waiting until you are in a tight spot to hash things out is also key to a solid bond. Maintaining trust and having patience can help your partner feel comfortable being open about their financial habits. How someone spends their money is often a reflection of their priorities in life, therefore it’s always important that you’re both honest so you can make sure you remain on the same page.

Article Source: Wendy Bignon for CUInsight.com

13 Money Tips for Married Couples

Fotolia_48240524_Subscription_XXL-2-Copy-1024x683Marriage brings both happy times and not so happy times – with most troubles stemming from financial issues, there are ways to get through them. For the 70 percent of people who will be married at some point in their lives, financial advisors say there many ways to benefit from the power of two. Here is a list of their best financial advice for married couples.

1. Talk openly about money even before you marry. “As soon you are married, or even before you get married, you should start talking about your goals and financial assets,” says Derek Gabrielsen, a wealth advisor with Strategic Wealth Partners in Seven Hills, Ohio.

2. Define shared goals. “You talk about building a life together – buying a home, having children, their college education and how you will protect each other’s health care and retirement,” says Diane Pearson, personal chief financial officer of Legend Financial Advisors Inc. “Financial planning might not be romantic, but there is some peace of mind in sharing the same goals.”

3. Stay in harmony with your shared financial plan. “A financial plan is just the starting point. Life happens and you need to make adjustments,” Gabrielsen says. A financial plan can serve as a reminder of what your big goals are and how to reach them. Financial planners can also act as intermediaries on tough financial questions.

4. Share costs. From home purchases to food shopping, there are efficiencies. By combining savings, couples can qualify for lower fees on bank transactions and retirement accounts. Account management fees typically fall below 1 percent a year for people with combined accounts of $250,000 to $500,000, and can be up to 2 percent for smaller accounts. Checking and personal loan fees can also be combined for significant savings.

5. Communicate about what you need. Women need to be more confident so they can engage in discussions about investing for retirement which recently issued a study on affluent women that shows low levels of participation. While 90 percent of the women surveyed said financial expertise matters, only 40 percent are confident that they have any, and fewer than half wanted to build their knowledge. Couples need to plan together, and women are too inclined to stay on the sidelines.

6. Pool long-term assets for maximum growth and safety. When you pool resources, you have more for down payments, better access to credit and you can invest more in growth opportunities, Pearson says. For homeowners, joint ownership can also add a layer of protection from creditors.

7. Share goals and diversify assets. “The more you have invested together, the more creative you can be in your asset mix,” Gabrielsen says. “It means you can diversify more widely to protect against risk if you combine assets. To get the most out of it, you need to coordinate both spouses’ holdings into one nest egg.” With a larger pool of money, “you have the leeway to add a few growth stocks with upside that you might not put in a smaller account,” he says.

8. Take advantage of tax benefits. “You might pay a bit more in income tax going from single to married, but there is a savings in taxes overall,” says Popovich, an expert on financial issues in same-sex marriages. In the case of the estate tax, couples can transfer $5 million to each other tax-free. “The ability to transfer assets to each other is really important,” he says.

9. Respect each other’s money skills. “Couples rarely have the same financial expertise, and it’s not always men who have more,” Pearson says. “The spouse with skills can lead. One might focus on day-to-day bill paying and cash flow, the other on investing. But both need to be involved with decisions or it can lead to bitterness.”

10. Support each other through ups and downs. “Spouses can really do a lot to take the pressure off each other,” Gabrielsen says. Women have moved near equality to men in terms of income and in a recent survey, they out-earned their male spouses.

11. Don’t give up on communication, even in a separation. An acrimonious divorce can be costly for both partners. Some people think they can hide income or property. “You really have to go to a lot of trouble to hide assets,” Gabrielsen says. Open communication about financial assets and costs can make the other parts of a split-up easier for all involved.

12. Use flexibility in Social Security and employer benefits. Social Security pays spousal benefits even for those who don’t work. Health care insurance and other benefits are useful, even when both spouses have their own. “Couples don’t always have the same time table for retirement,” Gabrielsen says. “They enjoy more flexibility when it comes to staggering their retirements, and I know a lot of boomers doing that.”

13. Perform regular financial checkups. “I find it very rare for couples who just want to go off and each do their own thing financially,” Pearson says. “Most people want to find a financial path and want stay on it. But it requires communication between spouses, creating a financial plan and updating it when things change.” Although it sounds basic, the Wells Fargo survey of affluent women found that less than half of them have a financial plan.

*Original article source courtesy of Richard Satran of US News.