Your Financial Partnership
Given the choice, none of us would choose to learn about financial
issues during a crisis like divorce, job loss or death of a spouse. However, that's what
many of us do.
Sometimes, we think we're helping our partner when we handle the finances alone. But
nothing could be further from the truth. Like any business partnership, your partner in
home finance needs to know how to carry on in case you die or become disabled.
It takes more than having a credit card in your name or knowing your net worth to control
your finances. You should have:
 | A loan in your name that establishes a credit history |
| Individual and joint savings and investment goals |
| Your own income replacement plan in case of disability |
| Your own financial strategy for retirement, and |
| An understanding of joint Social Security and pension benefits for both you and your spouse. |
| You and your spouse should discuss the financial issues that you normally do yourself. Cover what you do month-to-month, why you do it, and where you keep the records. And don't forget any stocks, bonds, mutual funds or CDs you may have. |
In addition to short-term issues, review the big picture - long-term asset growth. Don't
make the common mistake of confusing day-to-day money management with building your
savings.
Many of us are reluctant to even think about a disability or death - let alone actually
doing something about it. But procrastination can literally leave you without the nest egg
and safety net you need. Take advantage of finance classes, investment clubs and public
seminars. Your library can also be an excellent resource.
Don't leave your spouse in the dark when he or she is least able to cope. By sharing and
preparing now, your partner can avoid the struggle with an unfamiliar financial jungle
later.
