Project Description
There are key times in life when assets, responsibilities and obligations change. One such time is definitely marriage. Our financial picture now involves someone else and perhaps children as well.
In marriage we take on new combined roles and new financial implications. Our personal financial goals become intertwined with our spouse’s plan and debt management brings a collaborative perspective. Establishing and communicating a good plan will allow you to build a strong financial foundation for your relationship. Focusing on your ability to earn income, take care of dependants, build a career and secure your financial future is vital.
A recommended agenda of what to consider are as follows:
- Establish banking practices and accounts.
- Create a budget.
- Set up a savings and investment plan – pay yourself first.
- Manage financial risk with appropriate insurance.
- Retirement and Estate Planning.
Nobody wakes up in the morning thinking of what it will be like if they die prematurely, or get sick. Married couples, especially with dependants, should discuss the financial impact of this happening.
Get a professional assessment as to your risk management needs and incorporate this into your plan. Income replacement is the major reason behind Life Insurance. Your ability to earn an income is fundamental to your future as well as your spouse/family. That risk of loss also needs to be mitigated with Critical Illness Insurance and/or Disability Insurance, which protects you in different ways but helps you maintain financial stability in a time that you get sick or cannot work. Life insurance can also be used to create a tax free estate for your beneficiaries or Charitable foundation.
In addition, ensuring you have a Will, Powers of Attorney and an Estate Directory is essential. Beneficiary designations are important as well so you can make certain that your assets are disbursed properly when you die. Furthermore, building assets such a owning a home or other investments will require you to examine long term estate needs and tax implications associated with them.
Finally, your health care costs may become a significant expense and risk especially with a family. Obtaining a good Health Insurance plan will insure you are covered for planned as well as unforeseen health needs.
If your marriage is more mature and you have already engaged in a financial plan, make sure that it is current. Review it regularly with an advisor and make sure your situation is still relevant to your plan. There is no better time to start reviewing your financial plans than with the birth of a child or any other major change in your life such as a new job, new responsibilities.
Don’t forget – Know your financial limits and stay within it – Create a budget and cash flow chart that you can manage and stick to it.
Contact Us for more information about how this could work for you.
