Marriage
Marriage is a happy occasion, where two people join and begin a new life together. But it also means a host of new financial considerations, from decisions about commingling assets and debts to conversations about wills and retirement. McRae Capital Management can help you understand the options and plan wisely for what happens after your wedding day. At this life stage, here are some important considerations to keep in mind.
Homeownership
Being married may help you qualify for better loan terms and have increased buying power. But before buying a house, there are some important factors to consider. Will both your names be on the deed and the mortgage? Have you factored in the expected costs of owning a home, like property taxes, homeowner’s insurance, and utilities? What size mortgage can you really afford so that you aren’t “house poor” and living beyond your means? We can help you sort through the chaos and understand what’s realistic.
Creating a Will and a Living Will
Marriage puts two people on the same path, and that means considering if something happens to one of you. Having a will tells the world how you want your assets to be distributed after your death, and a living will details your wishes for medical care if you become unable to communicate them yourself. McRae Capital Management can help you get these documents in order so you can have peace of mind, knowing that if anything happens your wishes will be respected, and your spouse will be taken care of.
Healthcare Planning
As a married couple, you’ll need to ensure you both have adequate health insurance coverage. This means reviewing your individual policies and determining the best path going forward (for example, if one of you enjoys better coverage than the other). You may also want to consider opening a flexible spending account (if offered by your employer) to set aside pre-tax dollars for medical expenses.
Updating Beneficiaries
Marriage widens the group of people you care about. You’ll want to ensure your spouse is properly protected if something happens to you, so consider updating the beneficiaries on insurance policies and retirement accounts. (McRae Capital Management recommends reviewing your beneficiaries periodically, updating them as your circumstances change.)
Paying for a Wedding
Ask anyone who’s ever planned a wedding—it’s not cheap. Creating a memorable occasion without breaking the bank starts with a realistic budget that prioritizes spending based on what’s truly most important to you as a couple. McRae can provide guidance to make sure wedding costs don’t derail your long-term financial goals.
Co-Mingling Assets
When two people become one, what happens to their individual assets? You’ll need to consider how to manage your finances together, including whether to open a joint checking and/or savings account. Whether you share everything or maintain some separation is up to you, but there are tax other implications to consider.
Changing Tax Status
Will you and your partner file your taxes jointly (i.e. together, on the same form) or separately? Filing jointly often provides more tax benefits, but there may be situations where filing separately is advantageous. McRae can help you find the best approach.
Connect your finances to what matters most
College planning is only one of many life stages where smart financial planning can make a difference. If you’re interested in learning more, please read our Saving for College Commentary.
