Planning for a Bright Future

About Me

Planning for a Bright Future

When I graduated college, I landed a dream job teaching accounting at a university. For five years I enthusiastically taught my students important accounting principles. During this time, I put a significant portion of my paychecks into a retirement fund. Because I’ve always been extremely conservative with my finances, I invested all of my cash into money market funds. Unfortunately, this decision did not yield great results. Now that I’m older and wiser, I’d like to rectify the retirement mistake I made when I was younger. On this blog, I hope you will discover the best types of funds to include in your retirement portfolio. Enjoy!

3 Areas Of Financial Planning Best Done As A Couple

Are you in a committed relationship with a partner or spouse? If so, one key decision that both of you must make is how to mingle (or keep separate) your finances. While this choice is personal and should always be what works best for your own situation, there is one area that should always include some joint planning. When doing financial planning, why is it a good idea to involve both partners in these three vital areas? Here are some answers.

1. Tax Planning

Tax planning, whether you're a high earner or a low earner, helps ensure you lose the least amount possible to Uncle Sam. But while this is always beneficial for individual taxpayers, couples can benefit even more when they share a tax strategy.

Shared decisions on things like whether to file jointly or not, how to claim dependents, which deductions each party should use, and how to align tax withholding can all make your family finances stronger than deciding things alone. Failure to do so means potentially leaving household money on the table. 

2. Estate Planning

Estate planning focuses primarily on the interests of each person and what they want to do with their money. But some aspects are best coordinated with a partner. It's particularly important to make sure your spouse knows what they will or won't inherit.

Mixed families that include stepchildren should also work together to ensure that both sets of children receive inheritances based on the wishes of parents. And if one spouse is not used to handling the family finances, they may need additional assistance understanding their new role should the other pass away first. 

3. Retirement Planning

Finally, do you expect to retire with your partner? If so, start planning for that retirement life together. This doesn't mean you must make all your choices together, but it should include some unified decision-making about key elements. 

For instance, do you want to retire together or one at a time? Both options are valid, but they require different approaches to retirement planning and withdrawals as well as a more thoughtful timetable. Planning without the participation of both parties could put both retirements in jeopardy. 

Where to Start

Ready to get started making the key financial planning decisions as a couple? Begin by meeting with a financial planner in your state today. With their guidance and expertise, you and your partner will be able to make the most of your tax options, retirement savings, and estate planning.