Help clients realize their retirement dreams in a time of economic uncertainty
Because of economic pressures and market volatility, many pre-retirees believe their retirement will be different from their parents and grandparents.
Key Takeaways:
When two people get married, they often bring diverse financial backgrounds, habits, and goals to the partnership. This convergence of finances can create harmony or discord, depending on how it’s executed. For many couples, the thought of combining finances might seem straightforward—until they are met with the intricate dance of legal, tax, investment, and retirement planning. In this guide we’ll highlight how financial professionals can approach the sometimes-difficult task of combining marital assets.
Merging finances is more than a simple confluence of numbers—it’s an emotional and strategic endeavor between two people building a life together. It’s no secret that many couples struggle to combine finances, and it can be a source of stress in a marriage. The Institute for Divorce Financial Analysts reveals that money issues are a leading cause of stress and divorce among couples.2 Additionally, its estimated that 1 in 7 Americans ends a romantic relationship because of conflicts over money with their partner.3 Knowing this, it’s imperative to help your clients get on the same page early and begin to build financial security with one another as they merge accounts, share debts, and budget for their lives together.
Fostering healthy financial communication between couples can be a great way to achieve a successful merging of assets in a marriage. Encouraging clients to have open and honest conversations about their financial history, current financial situation, and future plans and aspirations can be a great place to start. Couples will probably want to consider the costs of raising children, where to retire, and what lifestyle they want to maintain in these conversations.
Regular financial check-ins can help couples tackle money challenges that come up before they escalate. You can help by mediating conversations about cash flow management, debts, and investment strategies, transforming a potentially uncomfortable conversation into a productive one. Below are key tips that financial professionals can share with their clients to help facilitate a smooth transition into joined financial living:
Married clients stand before an incredible opportunity to build something together that wouldn’t be possible alone. You can play a crucial role in helping couples achieve their dreams. From tax considerations to retirement planning, financial professionals have the tools and knowledge to guide clients towards a mutual payoff that can fortify both their financial health and their marriage. Investing in the fiscal diligence of combined assets now, financial professionals can yield dividends not just in their client’s portfolios, but in the quality and endurance of their clients’ marriages.
Nationwide and its representatives do not give legal or tax advice. An attorney or tax advisor should be consulted for answers to specific questions.
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