Couples Financial Planning

Marriage comes with many joys and challenges. When combining your lives, many decisions need to be made about where you will live, how the responsibilities will be shared and what your financial plan will look like.

Financial matters can cause stress and disagreements but it can also provide security and growth. There are strategies couples can use to alleviate friction and set yourselves up for the future you want together.

Whether you are newlyweds or married for many years, it is important to have a strategy that you both agree on and guides you toward your goals.

Couples financial planning should start as early as possible to set you up for the lifestyle you want together into retirement. Couples need a legacy plan for their estate and to be prepared for the unexpected.

If you are a newlywed couple, both partners should have a conversation and be open about any debt they may have, how they manage money and decide who will oversee the bill payments. Even if a couple is married for many years, it is always beneficial to revisit your plan yearly and make any changes as needed.

To build your plan, start with the basics and create a budget. Create a spreadsheet of income and expenses and set amounts for saving and spending limits.

Decide what the structure of your accounts will be. You can combine all accounts, create a joint account for bills or savings, or maintain separate accounts and agree who will contribute what amount for each category.

Once you have an overview of your finances you can begin to create your goals and savings plan. Start with an emergency fund that can cover your expenses for at least six months. Decide if you want to save for a vacation, new car, a house or children and what those amounts will be.

Couples need to consider at what age each partner will stop working and begin Social Security or a pension. Calculate what expenses to expect such as healthcare costs, living expenses, hobbies, travel and long-term needs.

If retirement is decades away, then focus on saving what you need to each year to reach your financial goal for retiring. If retirement is around the corner, get to work on your post-retirement budget and be ready for when that day comes.

To get started on planning your financial future together. Schedule a free consultation at duffyfinancialplanning.com or call 732-910-9207.