“Go talk to a financial advisor. A lot of people see financial advisors as the people behind the portfolios and building financial plans, but in a lot of ways, we are like therapists. Being able to have an independent third party to help you through your shared financial plan is a big help to some people.”
Getting married and merging finances with another person is a big decision to make. In this episode, Eric Sachetta, Mike Callahan, and Kevin Kenny, financial advisors, discuss marriage and different options for financial planning with a new spouse.
When merging finances, it may be a good idea to formulate a plan with your partner, although there is no right answer and many different ways to approach it. Some couples find it easier to keep their finances split, however financial advisors suggest that major life goals, like affording a new home or supporting children, are more achievable when combining incomes and savings. Oftentimes one spouse with more financial literacy takes the lead on long-term financial planning, while the other person takes over daily bill-paying and spending. That being said, it's recommended that everybody has a financial advisor so they can make the best, well informed, decision for themselves.
Sharing money can be difficult, especially if you want to save or spend more than your partner has in mind. One common option is to create a joint account where both people contribute to shared saving goals, while also maintaining separate individual savings accounts where excess money can be spent without checking in with significant others. It’s also important to communicate information about any shared accounts or incurred debts, and some couples schedule regular times to go over plans and documents together. Most importantly, creating a financial plan gives couples a starting place that they can then make adjustments to life takes its course.
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Getting married and choosing to share finances is an important juncture to consider financial plans. If you’re looking for guidance, reach out to the financial advisors at Sachetta Callahan today.