Money is often cited as one of the biggest sources of conflict in relationships. It’s no secret that finances can be a sensitive and challenging topic for many couples to navigate. But that’s where a financial advisor can come in.
If you’re in a partnership and have questions around the following five topics, you may want to hire a financial advisor.
How to Navigate Different Financial Goals
Every individual has their own unique attitudes, habits and financial goals. But when two individuals come together to form a partnership, there can be discord.
Navigating differences to find common ground requires a clear understanding of your priorities and a well-defined plan. A financial advisor can help you and your partner outline short-, mid- and long-term financial goals, as well as define the specific steps needed to achieve them. These are personalized plans that take into account your income, expenses and overall financial situation. Then, as time passes, a financial advisor will regularly reassess your progress and adjust your plan as necessary to ensure you both stay on track.
Juggling the financial needs of two people is a lot easier if you know what each other’s priorities are, both now and into the future.
How to Work With Your Partner to Reduce Debt
Whether you keep your finances separate or hold everything jointly, your partner’s debt could impact you. But, if you decide to work together as a couple to reduce debt, you may be able to accelerate the debt repayment process.
Working with a financial advisor will allow you to open up the conversation around debt and create a plan to pay it off – in the end, helping you manage your finances more effectively.
How to Save for Retirement As a Couple
Planning for retirement can be overwhelming, as it requires communication, planning and commitment. A financial advisor can help couples create a plan that takes into account their unique needs and goals.
That could suggestions such as:
- Opening a joint retirement account, such as a 401k or IRA, and contributing regularly.
- If one partner has access to a retirement plan through their employer, ensuring both partners are taking advantage of any available matching contributions.
In addition, financial advisors can provide guidance on factors such as Social Security benefits, tax implications in retirement, estate planning, and more.
Related: 5 Reasons Why Pre-Retirees May Need a Financial Advisor
What to Do If Two Partners Have Unequal Financial Knowledge
It’s possible that one partner may have more financial knowledge than the other, which can lead to power imbalances and potential conflicts related to trust, security and self-worth. A financial advisor can help educate both partners on a variety of subject matters, ensuring they’re both on the same page.
How to Manage Complex Financial Situations
There are endless complex financial situations that can come about in a partnership. For example:
- Income disparities/job loss.
- Business ownership.
- Owning multiple properties.
- Receiving inheritances.
- Unexpected expenses.
Couples in these situations may benefit from the expertise of a financial advisor who can help them navigate these complexities.
At some point, everyone needs to develop a long-term financial plan that maps out what it will take to reach their life goals. Why not start now?
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