Summary Of Marriage Series
- Crawford Ulmer
- Dec 28, 2023
- 3 min read
This will be the last post in the marriage series! In this series, we have covered a variety of financial planning topics that are especially important to consider if you are about to get married or were recently married.
Before we move on to a new series, I wanted to summarize what we have covered.
Budgeting is important, because it sets a clear plan for allocating your resources and prioritizing your spending. When two people are becoming one through marriage, it is especially important that they are on the same page regarding how their shared resources will be spent.
I typically use the term “budgeting” as a general term for both budgeting and expense tracking. However, more precisely, budgeting is more proactive with expenses tallied throughout the month as they are occurring and expense tracking just looks at past spending retroactively.
As soon as a couple gets married, they are no longer allowed to file with the single filing status. They must file with either “married filing jointly” status or “married filing separately” status. A vast majority of married people will file jointly.
Whether a couple will pay more or less in taxes depends on a number of factors, but an important one is how their incomes relate to each other:
Similar, low-to-moderate incomes = will likely pay a similar amount as they did when they were single.
Large differences in incomes = will likely pay less.
Both have very high incomes = will likely pay more jointly.
It is always a good idea to periodically review retirement account beneficiaries. However, it is especially important to do so when you experience a major life change, including marriage. As in its name, a retirement account beneficiary receives the account after the account holder’s death.
A common goal I’ve heard from newly married couples is the desire to move to one income when they start having children.
Here are some ideas to prepare for this goal:
Life on just one spouse’s income - Although it may not be possible is all circumstances, the easiest way to plan for one income is to go ahead and start living on one income.
Pay off debt and save/invest - Paying off debt can reduce monthly expenses to make budgeting for a lower income easier. And getting a quick start on saving and investing can help prepare for the future, when savings rates will surely be much lower.
Career planning - Planning for one income is an important reason for the husband to think through his career.
Budgeting for changing expenses - It is also important to adjust your budget and account for expenses that will change during this period.
The IRA income limits for a married couple are not double those of single people.
It is important to think through how your money is invested and if those investments align with the goals of your new household. Here are some ideas:
Consolidating - After getting married, it is a good idea to consider consolidating your investment accounts to one financial institution.
Review your accounts and how they fit together - When evaluating your investments and other assets, a good place to start is by looking at the types of accounts you have and the different rules for those accounts.
Adjusting for new goals - To plan for a couple’s new, joint goals, their investment portfolio’s risk tolerance (how much risk they are willing to take) and corresponding asset allocation (how the portfolio is invested) may need to be adjusted.
If you have any comments, questions, or ideas for future posts, please let me know
I hope you found this post helpful and educational. If you have any comments, questions, or ideas for future posts, please let me know. You can reach me directly via email at crawford@ulmerfinancial.com.
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