Rochester Brides & Grooms Issue 52 November 2017 - May 2018 - Page 40

F inance Together You And Me Beginning Your Financial Journey In most cases, it is easier for newlyweds to track finances if their checking accounts and credit cards are jointly owned. It is important however that each spouse should maintain at least one credit card in their own name. Have an actual discussion with your significant other about how you see your finances laid out. Money Management ho So the wedding and honeymoon are over. You are settled om y.c together and ready to begin "real life" as a couple! But ph a gr where do you begin? This section will be a guide to to help you begin your financial journey. Taxes Everyone's favorite subject! Newlyweds filing a joint tax return will now encounter an entirely new tax situation; different from the single filing status they are accustomed to. Generally, filing a joint tax return results in a more favorable tax treatment. Early tax planning with a certified public accountant is the best way to maximize tax savings (also see pg 91). Especially your first year as a married couple, we recommended having a tax professional help you out when it comes to filing!  Insurance & Benefits If both of your employers offer a health insurance plan, see if it is cost effective to go under one plan with the broadest benefits. • Disability insurance is critical once you are married because your income can be your greatest asset. Although most people have disability coverage through their employer it may not be adequate. It may only replace 40% to 60% of their income and pay raises, pensions, and 401k contributions all stop! • Life Insurance's primary purpose is to offer financial comfort to a family in the event of death. Typically there are two types of life insurance, term and whole life. A good rule of thumb is to have coverage anywhere from 5 to 10 times your annual salaries. 40 Rochester Brides & Grooms