FINANCIAL FOCUS
KRISTI TREVINO Financial Advisor Edward Jones
Work with LIFE PARTNER to achieve MUTUAL GOALS
When you and your life partner work together to achieve your important long-term goals , such as a comfortable retirement lifestyle , the experience can be greatly rewarding . However , your success will require commitment and discipline . So , what steps should you take along the way ?
One key move is to decide early in your relationship how you will handle money . Many couples merge their finances and make joint decisions on major purchases . But some couples like to keep at least part of their finances distinct , perhaps by maintaining separate checking or savings accounts . There ’ s really no one correct solution for everyone , but whatever you decide , you ’ ll want to be assured that all the bills will be paid and that neither one of you feels the pressure of an unfair financial burden .
Here ’ s another suggestion : Try to avoid keeping financial secrets from your partner . That means disclosing your debts , hidden funds or uncommon investments . These types of surprises can lead to difficulties and mistrust . Even if you ’ re entering the relationship carrying something like a heavy student loan , it ’ s best to get it out in the open right away so , together , you can strive to gradually eliminate it .
Of course , there ’ s also a practical side to not keeping secrets . Your large student loan could affect your credit rating – an issue that may arise when you and your partner are seeking a mortgage or some other type of loan . Clearly , you both should be aware of this potential stumbling block before you begin the application process .
Now , let ’ s consider your investments . You each may have your own IRA and 401 ( k ) or similar employersponsored retirement plan , but you might also share a joint investment account . However , you might not share the same risk tolerance – perhaps one of you tends to be more aggressive , willing to take more risks in exchange for potentially higher returns , while the other is more conservative , preferring to keep down the risk level of a portfolio , even if it means lesser capacity for
growth .
Again , neither you nor your partner is necessarily “ right ” or “ wrong ” in your views on investing – and nobody ’ s feelings about risk should be ignored . But once you ’ ve clearly identified your retirement goals and estimated their cost , you may find that compromise is possible . In other words , perhaps the conservative partner will realize that a too-cautious approach could hinder progress toward the desired retirement goal , while the partner who focuses on maximum growth will learn that a somewhat less aggressive approach can still yield the desired results . This type of compromise may affect the investment choices you make in your individual accounts as well as your joint accounts . And the way you choose your investments may even change over time , especially if your financial goals evolve .
Ultimately , communication is the key . As long as you ’ re talking to each other and openly expressing your wishes and concerns , you and your partner can find a way to keep moving toward your mutual goals .
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor . Edward Jones , Member SIPC
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