Before you say, 'I do', it is crucial to have a sit down with your significant other to discuss financial planning to avoid it becoming an issue once the dust has settled. But what does this look like? We help you break down a few things when it comes to financial planning as newlyweds.
Before we begin:
Congratulations on planning your next big step! While we aim to give you tips to empower you, please note that this is a general guideline that we have put together to help you start your journey of financially planning your future and it should not be taken as financial advice. Although these points are great starting points, speaking to a financial adviser will lead you to find the right fit that is suitable to your situation.
Become comfortable talking about money
Many factors come into play when joining your life to another person's life. However, finances can end up making or breaking what you and your partner are trying to build. One of the leading causes of divorce is financial matters. Talking about finances is important, especially when it comes to major financial decisions such as purchases, taking care of family and financial goals. Speaking to a financial advisor can help you and your partner set realistic goals that work for the both of you. It can also be a beneficial way of finding ways to make your finances work for you instead of the other way around.
What are your financial goals?
Knowing each other's expectations when it comes to your financial goals can lead to shared goals and financial planning that does not lead to stress. Your financial goals should consider both short and long term goals and how it will impact your finances. Keep in mind things such as having children, investments, reducing debt and things such as purchasing property. Speaking to a financial advisor can help you plan this out accordingly to give both of you breathing room and smarter ways to navigate your way towards achieving this.
Investments
Making smart money moves often involves choosing investments that can keep you and your significant other protected financially. It is equally important to talk about what type of investments you would like to make and how each can be beneficial towards achieving your financial goals. This will make it easier to navigate your way around investments that will be suitable to your circumstances and also help you avoid investing in things that could be potential time wasters. Your financial adviser can help you choose investments that are aligned with your goals and widen your options to available investments that will be suitable for you and that can grow with you.
Protect your partner
No one wants to think of a moment where their partner dies unexpectedly. However, it is something to consider by creating a financial safety net through estate planning. Having things such as a will, life cover, and funeral cover are just some of the basics that you will need to have in place to ensure that they are protected financially no matter what happens to you. It will also offer you peace of mind knowing that they will be taken care of, even when you are no longer around. Make sure that you both have separate policies to adequately cover each other.
Have your retirement covered
Know what you would like your retirement to look like. Once you have this in mind, it will be easier for you and your financial advisor to plan a way forward for you and your partner to retire comfortably. You can start with the basics of taking out a retirement annuity policy or joining an employer’s pension fund can be one of the ways to safeguard your retirement. The key is to find something that is affordable to your situation to ensure that you can make regular contributions that can go towards retiring comfortably.
Finally, make sure to regularly review your financial plans and goals to see if there is ways in which you can adapt these or if it is still relevant to what you want to achieve. Always remember that financial planning is a juggling act that will require a financial planner to help you navigate your new life together.
