Many Canadian weddings occur between June and September. If you’re planning a wedding, you have a lot to think about right now – going to parties, meeting new family and friends and sometimes combining existing households. With so much going on, it’s easy to lose sight of your financial goals. Here are 6 financial strategies to help you stay on track as your plan your new life together.
Determine short and long term goals – Everyone has a different investment personality and approach. But no matter how much you want to be involved with making financial decisions, it’s important you are both on the same page when it comes to your short- and long-term goals. Work with your financial advisor to identify your retirement goals, and establish investment strategies to help you achieve them together. Figure out how much you need to save and invest each month and set up a monthly budget and emergency savings plan to help you stay on track.
Commit to regular investing – When you begin your careers, you and your spouse may not have a lot of disposable income, but you still need to commit yourselves to putting aside some money each month – even if it’s only a small amount – for investment purposes. Time is money. This isn’t just a saying. The sooner you start saving and investing, the greater the benefit can be, because your savings have the potential to earn interest and grow over the long term.
Reconcile Your Investment Styles – You and your future spouse may have different orientations toward investing. By nature, you might be an aggressive investor, while your future spouse could be more conservative, or vice versa. This divergence does not have to be a problem, but you should communicate your preferences clearly to each other when choosing investments together.
Be co-managers – You probably know many married couples in which one spouse handles all the finances and investments. This isn’t necessarily a good model to follow. You and your future spouse will benefit if you are both are familiar with your investment situation and capable of making decisions.
Get covered for life’s ‘what ifs’ – Work with a lawyer to determine which of the following documents are appropriate: will, living will, power of attorney, health care power of attorney or trust. Update titles and re-register accounts and property to include rights of survivorship. Review life insurance policies and update beneficiaries and coverage to make sure you have an adequate amount.
Review, adjust when necessary, repeat – Meet with your financial advisor annually, or more often, to review your strategy to make sure you’re still on track to meet goals, and readjust if necessary. This includes reviewing beneficiaries of your RRSPs, life insurance, annuities and other accounts. If you have younger children, discuss and update plans for their education.
By following these suggestions, you can make long-term investing a rewarding part of your marriage. And the sooner you get started, the greater those potential rewards can be.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Barbara A Armstrong
Financial Advisor,
Edward Jones Investments
P: 250 384 8722
TF: 1 877 342 3280
Barbara.Armstrong@edwardjones.com
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