Financial planning in marriage isn’t one-size-fits-all, but there are critical areas where couples should align their strategies. When it comes to managing retirement finances, a collaborative approach is essential.
The Importance of Joint Financial Planning
Even if you prefer managing assets separately, certain financial aspects require a unified approach:
- Social Security Strategy: Social Security benefits are complex, with claiming strategies that impact both spouses. The Social Security Administration doesn’t always make these nuances clear, so couples need to coordinate.
- Retirement Income Planning: Retirement is fundamentally an income problem. Couples should collaboratively:
- Discuss retirement lifestyle expectations
- Understand combined expenses
- Align on desired retirement income
Managing Separate vs. Joint Assets
Some assets can remain individually managed. Retirement accounts must stay individually titled due to required minimum distribution rules, which are tied to each person’s age and life expectancy. Inherited assets might have specific purposes that are unique to one spouse, allowing for some individual management.
Choosing a Financial Advisor
When selecting financial guidance, couples should prioritize services over fee structures. It’s important to consider both fee-based (percentage of assets) and commission-based approaches, understanding that each has its place depending on the specific investment strategy. The ideal approach is to seek advisors who provide comprehensive retirement planning and who are willing to meet with both spouses to develop a holistic financial strategy.
Key Takeaway
While financial autonomy has its place, retirement planning requires a collaborative approach that considers the household’s overall financial health. Couples who communicate openly and work together can create more robust and secure retirement plans.
At GenWealth Financial Advisors, we work hard to meet your needs. By getting connected to a financial advisor, you can plan with your partner for true financial independence!
This topic was featured on the Get Ready for the Future Show. Be sure to subscribe to our YouTube channel to hear more financial insights on a weekly basis, and ask your own question by emailing it to show@getreadyforthefuture.com or calling or texting your question to 501-381-5228.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
