In a relationship, it’s essential that both parties face financial planning decisions as a team. But this is easier said than done. Why is it so difficult for love and money to peacefully coexist? 

Finances can be an emotional topic, causing stress and fear, so many couples would rather avoid conversations about money altogether. Not only does everyone seemingly have their own opinions on how to manage money, but most of us also have unique financial personalities: Some of us are savers, some are spenders. Some of us may be conservative, while others are free spirits. 

These differences (or even similarities) can cause friction, which then affects other aspects of the relationship. I’m sure you’ve heard of couples who have split or divorced because of fundamental differences in how they handle money. We’ve advised couples of all types over the years and have found these tips for both younger and more mature couples can lead you to a financial future you’re both comfortable with.

Financial Planning for Younger Couples

Often a young couple moves in together or marries, and then they discover that they have different attitudes about money. One spends when the other wants to save, or an organized person finds his beloved lets the bills pile up. Here are some ways to navigate your finances in the early years: 

We have a four-step process that will build your patience with each other by focusing on communication.

  • We recognize that you both likely have different values, habits, and anxiety levels or triggers. Our planners will listen to each of you, so we can align your objectives with strategies that will address your separate and joint plans. 
  • Our advisors will talk to you about your attitudes toward money and how finances shape how you view your world today. You can talk independently or with our trusted advisors to create a plan that takes into consideration your values and vulnerabilities. 

We understand where your money is going and how to put your financial routines on autopilot.

  • We can guide you as you determine how much money you want to go where and set up the systems that do that for you. We will align your spending and saving habits with your priorities and goals. 
  • Our planning process allows you to figure out your goals and put your plans, such as a savings account or retirement fund, on a regular schedule or autopay. 

Financial Planning for Mature Couples

For more mature couples, financial planning is often focused on how to plan for a shift in income in your pre-retirement and retirement years. It’s an exciting time to set goals and make plans about the future. Here are the steps we suggest taking at this stage of your lives:

We’ll assist you as you consider your financial independence.

  • We can advise on what a shift in income looks like and how you can support yourselves (e.g., pension, retirement fund, Social Security benefits). 
  • We conduct a comprehensive review of your finances, so we design a plan for the future. Our team can lead you as you make necessary decisions about pension elections and Social Security elections, as well as advise on products like long-term care insurance. 

We’ll discuss with you the important decisions you have yet to make about your future.

  • Not only do you have to decide when you’ll retire, but you get to decide what you want this next phase to look like. 
  • Our process will show you the financial impacts of relocating or downsizing and what it looks like if you want to continue working full-time, part-time, or in a consulting role. 

Couples and Financial Planning

Our experience shows the best way to handle money tensions is to work with a professional who has an independent third-party viewpoint. Whether that’s a financial advisor, a marriage counselor, or both, we at Wealth Management Solutions can work with you to review your financial landscape, identify any gaps in your coverage, assist you in establishing short-term and long-term goals, guide you so you stay on track, and provide professional and knowledgeable advice.

If you have questions about your financial situation, desire advice or education on investing, or have yet to get started strategically planning for your future, we at Wealth Management Solutions would be happy to assist. Schedule a complimentary consultation by contacting us at (949) 475-9700 or info@wms-llc.com.

About Wealth Management Solutions

The story of origin: Wealth Management Solutions was created in 2003, following the personal family tragedies felt by both partners of the firm. First, Richard Riva, the founding partner, lost his father unexpectedly and before any legacy planning was done that could have extended his family’s legacy beyond the fourth generation. Secondly, Martin Lombrano lost his father before plans and strategies were designed to protect his family’s wealth and legacy. Our partners and team members all share similar experiences due to a lack of planning for their families and are committed to our clients not experiencing the loss of their legacies due to a lack of planning. This is why we say: Our Planning; Your Future. 

All investing involves risk, including loss of principal. No strategy ensures success or protects against loss

The opinions voiced in this material are for general information only and are not intended to provide specific investment advice or recommendations for any individual.