Photo: Gregory Jordan
Perhaps not the most romantic of topics, but managing your money successfully with your partner will help you go on more beach getaways in retirement. Here are a few tips on Valentine’s Day:
Agree On Your Goals
Research has shown that many couples disagree on fundamental topics such as the age they plan to retire at, and the sort of lifestyle they expect to have in retirement. It’s easy to assume your partner shares your financial goals, but if you haven’t discussed it, then there’s no way to be sure. Agreeing on what you’re trying to achieve is the obvious first step in getting there, and all it takes is a simple discussion.
Plan Your Portfolio Collectively
If you both hold separate investment portfolios you may be making mistakes you aren’t aware of. Perhaps you are jointly holding too little of a particular asset class assuming the other owns a lot of it, or together you are holding more stock in one company in total than you realize. There may be tax advantages to holding separate portfolios, so you don’t necessarily need to merge them, but you should look at them in combination to be sure the investment choices make sense when looked at together.
Make Tax Efficiency Trade-Offs
If you are both working and have 401(k)s and the employer matching being offered. If one scheme is more generous, then consider saving more in that scheme to take full advantage of the employer matching on offer. Employer matching can be a fast way to grow your savings, and it’s an employment benefit worth taking advantage of.
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