I love love. I’m not embarrassed about it. It’s one of the best parts about being human. I love to hear about client’s love stories and how they met. I love to hear about the romantic vacation two clients took in the first year of retirement. I love to hear stories of second chances at love after a divorce or a loss of a spouse. I love to see a married couple who boasts that they have been married for thirty years but look at each other with that sparkle in their eyes still. It’s one of my favorite things to connect with people about. It’s all that fuzzy, feel-good stuff that puts a smile on your face – what’s not to like? I don’t care that Valentines Day was possibly created to sell more cards at Hallmark, I love to participate.
So you’re in love… how does that fit into your financial picture? Too many ways to fit in a short five minute blog post is the answer! To be onboarded as a client into the Mancino-Utz group one of the non negotiables is that we start out with a written financial plan, know as the Masterplan. In my opinion, if you are in love and have a partner in life this something you should participate in together.
There are a lot of considerations when merging financial assets, and this isn’t a recommendation to put your boyfriend of the month as a co-owner of your bank account. However, there has been research that suggests that couples that view their finances as a joint venture, have happier and more successful marriages (Source: Indiana University, Kelley School of Business). Truly, if you are committed enough to someone that you want to spend your life together, it’s time to come up with a joint, written financial plan.
What this looks like is having an open and honest conversation about goals, financial assets, savings rates and liabilities. This means discussing with your partner what assets are brought into a marriage and what needs to be kept separate. This means having a conversation about risk, how much cash we keep on hand for emergencies, and protection in the event that something does not go as planned. These conversations are essential to have with your partner, and as a financial advisor these are the things we talk with couples about every day.
Having a financial plan is essential when you’re in love. Let’s celebrate Valentine’s Day by creating one together :)