There are so many factors that come into play when planning for your financial future as an individual. You may choose to join your life with someone else and possibly go on to grow your family. Creating and maintaining a financial plan with loved ones in mind can be quite intricate and involved. As a young partnership or family just starting out – you most likely do not have a financial plan in place. Initiating a dialog about your finances can be daunting.
First, consider whether your household will consist of either one or two incomes. Will that change at some point? This will have a great impact on your budget, which in turn will affect your lifestyle.
Secondly, lay any large debts on the table. Credit cards, student loans, auto financing – These are major factors that will play into how you will spend and more importantly, save your income. Taking time to map out your household expenses is a great first step toward coming to mutual financial decisions. Mortgages, bills, savings, financing. These are all things to consider while figuring out a household budget that everyone can stick to.
Planning for retirement is something that every young working person should be thinking about at the very least. We have time on our hands – Start saving! Whether you are taking advantage of your employer’s 401k plan or opening your own retirement account, the earlier you start saving, the better. Planning for a life stage that seems distant now will save you from headaches and financial turmoil in the future. One tool available to anyone looking to start a retirement account is an Intelligent Investment Portfolio (IIP). An IIP account provides users an online-based platform that automatically manages your investments based on your risk tolerance at a very low cost. This is a perfect fit for younger investors looking to get their feet wet. See our Direct Investing tab on our website for more information.
Life insurance is another tool your financial advisor may suggest. In the unfortunate event that you or your spouse passes away, you want to make sure your family is taken care of. As you grow your family, you will undoubtedly want the best for them. This tool provides peace of mind that they won’t have worry over finances if something happens to one of the income earners.
To summarize, communicating with your partner about sensitive topics such as finance is imperative to gaining prosperity as a family. Maintaining a solid, mutual understanding of your financial needs and goals will ensure financial success in the long-term. Seeking out the advice of a financial advisor can help kick-start those tough conversations. Having a reliable resource for such an important factor in life will ultimately save you time and stress. We are all busy building careers and raising our families, we can all use a little help when it comes to building and securing our financial futures. A financial advisor always has the knowledge and experience to walk you through every potential path of your financial journey.