When a couple of any age gets married, they are beginning a long journey of shared dreams, happiness, and ambition. While newlyweds may spend big on wedding ceremonies and subsequent honeymoons, most already know the importance of planning their financial future. Since even small initial investments can yield long-term gains for couples, it is imperative to get an early start.
Why Financial Planning for Newlyweds Is So Important
Since more and more Americans are waiting until later in life to get married, the same financial planning advice that worked for older generations may not work for today’s newlyweds. If both spouses are earning and hold significant assets, then there is greater potential to both make short-term investments and long-term plans.
Putting money into a retirement account in your 30s, for instance, can reduce reliance on Social Security benefits and facilitate a healthy, comfortable, and happy life after you have decided to hang up your hat or turn in your badge.
Even if it is not your first time getting married, or you are marrying later in life, it is still important to consider the financial potential marriage can bring. There are, in fact, a variety of investment options that provide special benefits for older adults.
A wealth management attorney can detail which options are best for your marriage, no matter your age.
What Couples Should Consider When it Comes to Money
When you get married, you are entering what will likely be a years-long—and perhaps life-long!—partnership.
Since you and your spouse are planning to face life together, you should have a serious conversation about your financial goals and aspirations. Before you start putting together a plan, you may want to think about:
- Your goals. Where do you see yourselves in another five or ten years? You should make a realistic roadmap that incorporates your current income, career goals, and retirement plan. If you and your partner want to move to another state or country after retirement, then that requires serious forethought.
- Your budget. Even if you are financially comfortable, your budget should account not just for your immediate needs but your life-long dreams, too. You might want to think about how much money you can comfortably put aside for your children or future children each month, as well as what resources you have to invest.
- Your debts. Many Americans owe big money on student loans, and most will either purchase or think about purchasing a house at some point in their lives. If it is going to take you 10 or 15 years to pay off the cost of going to college, then the amount of your monthly student loan payments should be part of your long-term financial plan, too.
- Your comfort. Some couples want to combine their finances for the future, while others may feel more comfortable consolidating and retaining whatever they gained before marriage. If your partnership is not financially equitable, or you simply wish to protect your assets for a worst-case scenario, then you might want to think about signing a postnuptial agreement or making specific ownership arrangements.
- Your potential. Even if your earnings are modest, you can still likely take advantage of investment opportunities and interest-accruing investment accounts. An experienced financial adviser can help build you a customized couples’ portfolio to try and determine your best path to lifelong success.
When Couples Should Think About Getting a Professional’s Feedback
An unfortunate number of Americans do not responsibly manage their wealth: they miss opportunities to invest, do not put money into investment retirement accounts, and hope that Social Security will carry them through their golden years.
When two people get married, they are in an ideal position to begin planning their finances. Even if two people lived together for years before saying their vows, marriage could bring new opportunities in the form of tax benefits, joint accounts, and combined stock portfolios.
A wealth management attorney can help guide couples through marriage’s many financial benefits, as well as its tax implications. A professional can help newlyweds make the decisions that make the most sense for them in the present while planning for a happy future.
Contact Quraishi Law Today
Whether you got married young or later in life, Quraishi Law can help you take advantage of the financial power of marriage. To find out more, send us a message online or contact us today.