Building a Life Together
Sharing your financial journey with a partner and growing a family together brings a whole new world of opportunities and challenges. It’s essential to communicate with each other and work together — not only in dealing with everyday financial decisions and transactions, but in identifying your priorities and pursuing your long-term goals.
Protect your assets
Consider the impact on your finances if you or your partner were unable to work. Could you pay your bills? Would your children be provided for?
While no one enjoys talking about it, life insurance can provide essential financial protection for a family in the event of loss — for example, paying off a mortgage and providing income for survivors. Disability-income insurance can replace a portion of your income if you become unable to work due to an accident or illness. And property and casualty insurance — like homeowner’s or renter’s policies and auto insurance — can help you protect your most valuable assets against damage and loss.
Manage debt wisely
Understanding the difference between debt that may be acceptable — such as a home mortgage or car loan, and debt that is unacceptable — like high credit-card debt — is vital to managing it wisely. An interest-bearing, money-market savings account can help you put aside cash for planned purchases as well as emergencies. If you find yourself paying only the monthly minimum on two or more credit cards, a low-interest debt-consolidation loan, along with a commitment to eliminate your dependency on credit, can help you improve your financial well-being.
Plan for retirement
Be sure to take advantage of salary-deferral 401(k) programs and other employer-sponsored retirement planning options, especially if your employer matches your contributions. But don’t assume that will be enough to fund your retirement. You may also consider contributing to an Individual Retirement Account (IRA), or a spousal IRA for one-income married couples, and take advantage of tax deferrals on earnings. If you’re self-employed, you can contribute to a SEP-IRA or other small-business retirement plan.
Save for a child’s education
Whether your goal is to fund a traditional four-year college education, trade or technical training, or elementary or secondary private education expenses, “the earlier, the better” is sound advice in education planning. A variety of investment options are designed to enable you to invest for education-related goals while also providing tax advantages.
Invest for other life goals
What’s important to you? Do you see yourself opening your own business one day? Enjoying a once-in-a-lifetime world tour? Settling into your dream home? Investing today’s discretionary income towards tomorrow’s dreams can help you pursue those goals.
Talk to a qualified Financial Advisor
Through knowledgeable advice and a personalized financial plan, a First Command Financial Advisor can help you as you begin your financial journey — with solutions for building up your financial resources, reducing debt, managing financial risk and planning for your future. To learn more, contact a trusted First Command Financial Advisor today.