Phil's Personal Finance Tip of the Day:
Are You Planning a Big Life Change This Year?
By Andrea Coombes | The Wall Street Journal – Fri, Jan 25, 2013
Life goes on. If you are anticipating some major changes in 2013, you'll need to do some planning.
Here's a checklist of essential money strategies to consider before you take one of these five key steps in your life.
So, if you're ...
... Getting Married, Then
Talk with your intended about money. Discussing finances before the wedding can help forestall disagreements that can ruin a marriage.
"Money is an area of intimacy that a lot of couples heading into marriage have not yet addressed," says Maura Griffin, chief executive of New York-based Blue Spark Financial. The conversation should include a discussion of the couple's money values and earliest money memories. That "sets the stage for being open about money," she says.
[More from WSJ.com: How Good Is Your Company's 401(k)?]
Get specific. Create a budget for managing expenses, discuss how to pay down debt outstanding, talk about specific savings goals and compare investing philosophies.
Decide how to merge finances. Some planners suggest separate checking accounts in addition to a shared account, but Randy Warren, chief investment officer with Warren Financial Service in Exton, Pa., says all of a couple's money should be pooled.
"If you want your marriage to be solid, then you need to work as a team," Mr. Warren says. Put all the money in one account, and agree on an amount above which neither spouse will go without talking to the other first.
Update beneficiary designations and add your spouse's name to accounts. "That's especially important for second marriages," says Keith Beverly, principal with New Paradigm Advisory Group in Durham, N.C. "If they haven't done proper planning, they don't necessarily know where their assets will be directed if something were to happen to them."
... Having a Baby, Then
To read the entire article from Andrea Coombes | The Wall Street Journal:
Here's a checklist of essential money strategies to consider before you take one of these five key steps in your life.
So, if you're ...
... Getting Married, Then
Talk with your intended about money. Discussing finances before the wedding can help forestall disagreements that can ruin a marriage.
"Money is an area of intimacy that a lot of couples heading into marriage have not yet addressed," says Maura Griffin, chief executive of New York-based Blue Spark Financial. The conversation should include a discussion of the couple's money values and earliest money memories. That "sets the stage for being open about money," she says.
[More from WSJ.com: How Good Is Your Company's 401(k)?]
Get specific. Create a budget for managing expenses, discuss how to pay down debt outstanding, talk about specific savings goals and compare investing philosophies.
Decide how to merge finances. Some planners suggest separate checking accounts in addition to a shared account, but Randy Warren, chief investment officer with Warren Financial Service in Exton, Pa., says all of a couple's money should be pooled.
"If you want your marriage to be solid, then you need to work as a team," Mr. Warren says. Put all the money in one account, and agree on an amount above which neither spouse will go without talking to the other first.
Update beneficiary designations and add your spouse's name to accounts. "That's especially important for second marriages," says Keith Beverly, principal with New Paradigm Advisory Group in Durham, N.C. "If they haven't done proper planning, they don't necessarily know where their assets will be directed if something were to happen to them."
... Having a Baby, Then
To read the entire article from Andrea Coombes | The Wall Street Journal:
Empty pockets never held anyone back. Only empty heads and empty hearts can do that. - Norman Vincent Peale
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