Personal Capital Marriage Guide

21 Pages·2017·1.13 MB·English

MARRIAGE
GUIDE
GO TO WWW.PERSONALCAPITAL.COM TO LEARN MORE ABOUT OUR FREE FINANCIAL TOOLS
At Personal Capital, we realize how much life decisions
impact your financial choices – and vice versa. One
of the biggest decisions people make is whether to
connect their lives to another person: marriage. This
decision can impact your financial life and goals in ways
that few other decisions can. From determining whether
you’re financially compatible, to planning the wedding,
to figuring out what comes next, the Personal Capital
Marriage Guide will help you navigate many of the
financial topics that come to mind when tying the knot.
Deciding to
Tie the Knot
YOU FOUND YOUR SOULMATE – NOW WHAT?
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GOTLEARN MRGBURN 2017 MARRIAGE GUIDE p3
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DEBT NUMBERS
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INCOME PICTURE AND JOB STABILITY
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SAVINGS PATTERNS
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LONG-TERM FINANCIAL GOALS
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PERSONAL CAPITAL 2017 MARRIAGE GUIDE p �
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e fi l – taht seo g ra f dno y e b tah w tne c s tne g r e t e d uo y ,e s u ro tah w e ru t a r e p m e t ll’ u o y pee k eht . t a t s o m r e h t
E UDGUR� �� � A� GR�� �
Grab a glass of wine with your partner and ask yourselves
these questions to help you plan for the future:
How much money do we earn together How much should we save for an
and what is our earning potential down emergency fund and who is responsible
the road? for what portion?
Do we earn enough to cover our current How much do we have in investment
combined expenses? accounts, including retirement, IRAs, and
401ks?
What is our ultimate financial goal and
how do we plan on achieving it? Where do we put our money, and what
[Speak to a financial advisor today] kinds of purchases do we need to decide
on together?
How much in liquid assets do we have,
and do we keep those funds in joint or Who is in charge of keeping the books,
separate accounts? paying the bills, and keeping us on track
for any long-term financial planning?
GOTLEARN MRGBURN 2017 MARRIAGE GUIDE p5
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WEDDING BUDGETS
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PERSONAL CAPITAL 2017 MARRIAGE GUIDE p �
HOUSEHOLD BUDGETS
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PRENUPTIAL AGREEMENTS
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EXISTING DEPENDENTS
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e ra gni g n i r b rie h t nw o ne r d l i h c o tn i rie h t w en . s e i l i m a f A nom o c e ci t c a r p si ro f wen se s u o p s o t t po d a eht
ne r d l i h c rie h t se s u o p s gni r b o tn i eht . y l i m a f
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GOTLEARN MRGBURN 2017 MARRIAGE GUIDE p7
D� MI� I� G� I� A� I�� A � AD�� ��� �
The money conversations don’t end just when you say “I do.” As you think about combining two lives –
and that includes financial lives – you should also be thinking about combining assets. Do you want to
keep them separate or will you blend them? While there’s no blanket right way that will work for everyone
since each couple has completely different situations and circumstances, you can evaluate some of the
benefits to each.
AA� A� GE � D� E� EI� G� AE� � E� A� RAE� �
Many people like to maintain their own individual accounts, separate from one they share with their
spouse. A common reason for maintaining separate accounts is for independence - you may like having
control over your own spending habits without someone else looking over your shoulder. In addition,
e rom elp o e p ni eht de t i n U se t a t S e ra gni t t e g dei r r a m re t a l ni ,e fi l which means many financial habits
and accounts are already established, and there isn’t the need to subsequently join accounts. You may also
consider keeping separate accounts for your own individual needs – whether it’s paying individual bills,
keeping a separate emergency fund, or privacy. And lastly, if you have inherited money, it might be a good
idea to keep this in a separate account to show that it’s inherited, which might be helpful down the road
should anything happen with your marriage.
AA�� A�� GE � D� MAIA�� II� G� D� I �� AD�� ��� �
On the other hand, many couples who decide to keep their accounts together report a sense of autonomy
and feeling like part of a team when they use this method. In addition, if something unexpectedly
happens to one of you, it may be difficult for the other spouse to access funds – you generally have to
go through probate for this. One way you can work around this is through a transfer of death on the
account, which allows the holdings to go directly to the spouse upon the death of the other.
There are also certain things to consider when using a joint account. For example, does each person put in
an equitable amount of money? Or does each person put in an equitable percentage of his or her income?
What happens if one person is a stay-at-home parent? How do you allocate unexpected bonuses? Who
will be in charge of tracking spending and how will you measure net worth? Will you still sit down
together and discuss your finances and keep track of all your accounts or is each person individually
responsible for their financial fate?
Because of these questions and the complicated nature in which the answers might affect the
relationship, it might take longer to work out some of the fine-tuning of having joint accounts.
PERSONAL CAPITAL 2017 MARRIAGE GUIDE p�
Walking
Down the Aisle
MAKING THE DREAM WEDDING INTO REALITY
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GOTLEARN MRGBURN 2017 MARRIAGE GUIDE p9
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D � � � EI� � E G� IIRM� � E � E MAG�
Too many wedding invitations? Here are tips on surviving wedding season
START SAVING – Put oury vsia n g s oi nt a LEARN HOW TO SAY NO. ou Y t ’do n e vha o t
e n te rdif f o u n c t a . c en v E i f s it’ j u t s 1% fo eac h ea n t d t ervy e ed w ed -i pn rg entv e or e nv e
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c h e c k i n g ounc t a c so ou y oi dv a etm ap t t i o n in the lats six mon t h s – t’ don e e l f gu i l t y
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vs i a n g s ounc t a c th a t ear n s at lea ts 00% 1. . A Y P o t e mak i t .
TRY TRAVEL HACKING. ou Y sh o u l d onl y d o SHOP REGISTRIES ON HOLIDAY WEEKENDS.
this if ou y e vha a ongts r ed ic tr e orsc a n d ear T h e pels a c pe o p l e usu a l l y egr i trs e ar a l l
go o d wit h edic tr .d sca r I f ou y kw n o ou ’y l l es or ts t h a t do de p doui sn c t s on odpu rc t s
be spe n d i n g a tl o on eliv n t a g r or f ed w d i ,ng s d u r i n g hol i y d a en .d se w k e e p K ou yr e ye o u t
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PERSONAL CAPITAL 2017 MARRIAGE GUIDE p � �