I often talk about the importance of having a financial check-up with your advisor at least once a year, more often, depending on circumstances or changes in your life. It is also important for you and your spouse to dicuss finances and be on the same page. So this month, why not schedule a financial meeting with each other.
- Pick a day a week or so in advance. Put it on the calendar and choose a place you can sit and talk without interruptions. Have your financial statements and all documents regarding your finances in front of you to discuss.
- Have an agenda. Usually, one or the other are responsible for certain aspects of your finances. Often the one writing the checks for household expenses is not the one who looks over the investment accounts. There is nothing wrong with that way, but both partners should have some knowledge of the others role in the financial picture.
- Have a list of household expenses. This is very important and should be at the top of the meeting. Both spouses should know what the monthly bills are and when they are paid. Some expenses are on autopilot, so taking time to look at them and discuss where money is being spent often leads to readjusting those funds more productively.
- Have a list of savings accounts. Know how much you have saved in various investments, retirement and savings accounts – as well as other assets such as insurance policies, pension accounts and real estate. It is a good time to review your investments to see the returns or gains you have, and do they still reflect your risk tolerance. Many people, as they age look at investing differently and your portfolio needs to reflect that.
- Know hat debt you still have. This is very important. Especially as you age. If you are still employed but are within a few years of retirement, you want to concentrate on paying off debt and be aware of any large purchases you see might be in your future that need to be planned for.
- Estate planning is a tough subject. There is always anxiety around subjects such as long term care, aging and death. However, you do need to review the planning you have in place, such as, wills, beneficiary designations, and POA’s to be sure everythign reflects your wishes.
Although you are a couple, you are both individuals with personal values and goals. Sharing these with your spouse though will create a much more balanced life and relationship. It has been written that financial tension is the number one issue in a relationship. Setting aside time to discuss matters like these is a good way to maintain a happy, healthy life together.