Marriage and Money
Is it true that those who plan together stay together? Does speaking about your finances have an impact on how happy you are together? Finances are the leading cause of stress in American couples. Among respondents with relationship stress between ages 44 and 54, 44% said money was the primary cause of the issues they were having.
In a recent poll of Americans by TD Bank that explored the impact finances have on a relationship, it was found that couples who talk about money regularly are happier than those who don’t. Forty-two percent of respondents said they talk about money at least once per week and described their relationship as “extremely happy.”
It is not just about communication. Trust is key. If you cannot trust your partner with financial matters, then that puts your survival on the line, and it is no wonder it is a cause of stress. So even if you do talk about money, you have to know that you are working together, and your partner is not doing sneaky things on the side with the cash. The cold fact is that couples hide transactions from each other. One fifth of Americans in a relationship say they have spent $500 or more and not told their partner, and 6% maintain secret accounts or credit cards. The same survey found that 36% of partners in a relationship do not consult their significant other about large purchases.
Over one-third of couples disagree on the amount of their household’s total investible assets. These sorts of communication and planning issues with couples are important. The fact is that if you are planning on retiring together, you have to make sure you will be able to do so and have a plan as a priority no matter what. For that to happen, honesty has to be the watchword of the day and transparency will be part and parcel of the planning. If you do not know what you are able to invest, you can’t make an educated decision, and that could prove costly.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC