Getting married can be one of the most momentous occasions in one’s life—and, for many, having two people working toward a common financial goal can also be the key to helping secure your financial future. If you and your spouse are on the same page when it comes to investing, you’re already a step ahead of the game. But for those who are new to investing or whose financial philosophies or goals might diverge a bit from their spouse’s, it’s important to keep a few things in mind.
Keep an Open Dialogue
Money—or money-related arguments—can be one of the biggest points of contention in any marriage.1 Though you and your spouse may have some philosophical differences when it comes to saving, spending, and investing, it’s crucial to maintain an open, respectful dialogue and to commit to working through differences together. In many cases, seeing a financial professional can help tease out your individual goals and help decide on goals to work toward as a couple.
Consider Tax Implications
The first federal income tax return you complete after your marriage can look quite different from the ones you’ve filed in years past. If you and your spouse earn similar incomes, you may find that your eligibility for certain tax-deductible contributions (like an individual retirement account or health savings account) has expanded, helping you put away twice as much tax-advantaged money each year than you could as a single filer.2 It’s worth looking into these deductions to see how much you’ll be able to save on next year’s tax payment by putting aside some pretax money now.
Time is Money
If, like many, you married in your 20s or 30s, there’s never been a better time to start investing. Each dollar you invest now has far more time to grow than a dollar you invest in your 40s or 50s, and putting away more now (especially if you have the benefit of a stepped-up household income) can mean dialing back your savings later if unemployment, a move, or family obligations cut into your disposable income. By committing to invest a certain percentage of your pay now, you can benefit from these funds for decades to come.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. 1 https://www.businessinsider.com/divorce-money-issues-financial-relationship-couple-2019-7 2 https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
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