Are you and your spouse on the same financial page? - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Are you and your spouse on the same financial page?

Print
Font Size:
Default font size
Larger font size

William Hertzog

Related Stories

Posted: Monday, March 4, 2013 8:34 am

After 24 years of marriage, Joe and Jane often finish each other’s sentences. So imagine how surprised they were when some differing goals emerged during a recent retirement income planning discussion with their financial advisor. As their advisor led the couple through an exercise designed to help them set retirement priorities, they discovered that Joe was eying a particular pocket of savings to enable his early retirement. Jane, on the other hand, viewed that same account as a fund for their children’s college education.

Such discrepancies are common, even for couples who communicate well. “When you’ve lived with someone a long time, you may assume you know what your partner is thinking,” notes Donna Peterson, senior vice president in retail retirement at Wells Fargo. “If you’re not on the same page, you could thwart each other’s objectives without knowing it,” she warns — as in the example of Joe and Jane.

Taking the long view

Uncovering such differences and deciding how to handle them is a critical early step to building a retirement income plan for both partners. During this first stage, your financial advisor will ask each of you key questions, such as when you want to retire, where you’d like to live, and how you ideally would fill your days during retirement.

The answers to those three questions in particular can affect major financial decisions you make as a couple throughout your marriage, so it’s best to start discussing them well ahead of retirement. For example, if you’re in the market for a new home, decisions about how much to spend and how long you’ll stay there may change when viewed through the lens of retirement.

It may make sense to economize on a house you intend to occupy only until your children are through grammar school, or to invest more heavily in a life-long residence. The size of the mortgage can also affect how much you contribute to retirement savings, as well as whether you enter retirement carrying debt.

Buying a home is just one choice into which retirement can factor. “Responsibilities to family, such as paying for education or caring for older relatives, can influence your plans, too,” Peterson said. And just as circumstances may change, so too can your retirement income plan — but it’s important to start with as complete a vision as possible.

Starting the conversation

Surprisingly, Peterson recommends that you and your spouse meet with your financial advisor to discuss your retirement goals in detail.

This discussion may stretch over a few meetings, since there’s a lot of ground to cover. Your advisor will not only help you discover your ideas about retirement, but also begin to educate you about issues that can affect your income plan, such as:

• Health care costs

• Risk tolerance

• Market and economic realities

• Inflation and taxes

“Very few couples have considered all these elements before consulting a professional,” Peterson said.

Your financial advisor can suggest ways to integrate these considerations into your joint retirement income plan. You may walk out of the session with a stronger strategy, as well as a greater understanding of your spouse’s hopes and dreams — knowledge that can make your partnership even stronger.

• This article was written by Wells Fargo Advisors, LLC, for use by William J. Hertzog, CIMA, first vice president of investments for Wells Fargo Advisors, LLC, in Ahwatukee. Reach him at (602) 952-5133 or www.TheHertzogGroup.com. Wells Fargo Advisors, LLC, member SIPC, is a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company. Note: Investment and insurance products are not FDIC insured, not bank guaranteed and may lose value.

More about

More about

More about

Stiff competition for new marijuana licenses in Arizona

Marijuana as a business in Arizona will grow, especially if voters pass Prop 205 and make recreational marijuana legal this November for peopl…

Published: August 23, 2016 - 6:48 pm @ http://www.fox10phoenix.com/news/arizona-news/1952…

Mayor Stanton And Phoenix Community Leaders Go Door-To-Door To Help High School Dropouts

Published: Tuesday, August 23, 2016 - 3:03pmUpdated: Tuesday, August 23, 2016 - 4:34pm downloadPhoenix Mayor Greg Stanton Tuesday joined a gro…

Published: August 23, 2016 - 6:17 pm @ http://kjzz.org/content/354778/mayor-stanton-and-p…

Feds to purchase 11 million pounds of surplus cheese

PHOENIX — The federal government has announced a plan to buy literally all the extra cheese. The U.S. Department of Agriculture said Tuesday t…

Published: August 23, 2016 - 5:47 pm @ http://www.usatoday.com/story/news/nation-now/2016…

Tucson Becomes an Unlikely Food Star

TUCSON — There are food deserts, those urban neighborhoods where finding healthful food is nearly impossible, and then there is Tucson. When t…

Published: August 23, 2016 - 5:47 pm @ http://mobile.nytimes.com/2016/08/24/dining/tucson…

Hundreds of applications pile in for Arizona medical marijuana dispensary licenses

PHOENIX, Az.– State officials say they received hundreds of applications for approximately 30 new licenses for medical marijuana dispensaries.

Published: August 23, 2016 - 5:46 pm @ http://www.thecannabist.co/2016/08/23/arizona-medi…

What’s Next For Canada’s First JW Marriott Resort

Toronto Hotel Toronto Hotel Hotel industry vet Michael Sneyd has launched his own firm and come on board at the JW Marriott in Muskoka to guid…

Published: August 23, 2016 - 5:46 pm @ https://www.bisnow.com/toronto/news/hotel/whats-ne…

Wanna play pro basketball? Phoenix Suns, D-League affiliate to host open tryouts

Wanna play professional basketball? Here's your chance. The Phoenix Suns and their NBA Development League affiliate, the Northern Arizona Suns…

Published: August 23, 2016 - 5:16 pm @ http://www.abc15.com/sports/sports-blogs-local/wan…

Jen Wahl TV - Timeline

See more of Jen Wahl TV by logging into FacebookMessage this Page, learn about upcoming events and more. If you don't have a Facebook account,…

Published: August 23, 2016 - 4:47 pm @ https://www.facebook.com/JenWahlTV/videos/11708911…

Wall Street’s Protection Racket: Mandatory Arbitration

By Pam Martens and Russ Martens: August 23, 2016  What people across Wall Street cannot figure out is why the Board of JPMorgan Chase, America…

Published: August 23, 2016 - 4:16 pm @ http://wallstreetonparade.com/2016/08/wall-streets…

Just 16 counties are fueling America’s use of the death penalty

Just 16 counties in the US are driving the use of the death penalty, despite a nationwide movement away from the sentence, a new report from t…

Published: August 23, 2016 - 3:46 pm @ http://www.businessinsider.com/16-counties-are-out…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…