Summer is just around the corner and is a popular time for weddings.
For the young, newly married couple, the areas of financial concern that will need to be addressed are: (1) life insurance, (2) form of property ownership, and (3) money management.
When it comes to insurance needs, the basic rule is that you need enough coverage to sustain your family’s present income level should you die. If you are the only breadwinner, or if you plan on starting a family soon, then you will need to purchase life insurance.
If you intend to own a residence or other property, or if you and your spouse already own property together, you will need to consider the best way for you to hold that property. Will the property be held solely by one spouse? By both spouses jointly? Because of the complex legal implications of the various forms of property ownership, you should seek legal advice about this issue.
It is important to consider carefully how your day-to-day finances will be handled. The new couple should discuss financial goals, resolve differences, and establish a budget and/or saving and investment plan.
Will you have joint bank accounts, separate accounts, or both? How much do you want to spend on vacations? On monthly food bills? Entertainment? Gifts? What are your long-term financial goals? Do you have a financial plan, even an informal one?
If you don’t have a financial plan, now is the time to prepare one. Even if you do have a plan, your changed marital status suggests that you review it.
For more information click on our web site’s “Resources” link and go to “Guides” or give us a call for help with your personal financial planning.