Yours, Mine, and Ours: Achieving Financial Goals as Individuals and a Couple
August 28, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
Making sound financial decisions is challenging enough when it’s just you – one person deciding on what’s best for his or her short-term and long-term goals. But add in a spouse, and the choices multiply! You now have two more sets of goals – your spouse’s and your combined goals as a couple. Plus, we all bring our own habits, attitudes, and history with spending, saving, bookkeeping, and planning for the future.
How do you accomplish what’s most important to you together and as individuals?
First, establish shared financial goals – this should be a combination of each of your individual priorities that you have discussed. This process generally works best if each person writes down his and her own goals before sharing them together. You will need to prioritize your financial resources toward meeting the ones that are most important to each of you.
Second, create the action steps and spending plan that support your goals. Depending on your history with spending and saving, you may want to consider setting up automatic savings contributions, shifting spending in certain areas to cash only, getting rid of credit cards, or other techniques that work for you.
Third, manage the day to day. Each person should have some responsibilities for managing your financial lives. Even if one person handles the majority of the financial tasks, the other person should still take the time to understand their overall financial situation, where all accounts are held, how investments are allocated, bills paid each month/year, etc.
Fourth, review your progress monthly and yearly. Set a monthly date to review progress on spending, saving, other action steps, and day-to-day financial management. Once a year, review your net worth statement and take stock of how overall progress is coming towards achieving your goals.
Money is a powerful tool to fund the lives we envision, and it can also be a source of friction and great pain in relationships. Sometimes involving a neutral professional – either a counselor or financial planner depending on the nature of the issue – can support you in moving the relationship and your financial goals forward.
To go more in depth on this topic, plan to attend my free workshop on Couples and Money at the Keller Public Library on Tuesday, September 20 at 6:30 pm. The library requests registration to library@cityofkeller.com or (817)743-4800.
August Personal Finance Newsletter
August 15, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The August personal finance newsletter is now available. It features a Q&A on the debt ceiling, downgrade, and market response. Plus there’s a follow-up on the ABCs of Trusts article from last month’s newsletter, suggestions on talking with your high school student about college costs, an analysis of the real costs of keeping your long-term investment assets in cash, an overview on the difference between Medicare and Medicaid, and more. To read the newsletter, click here.
College Savings Workshop for Texans
August 9, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
Learn how to save for your child’s college cheaply and save on taxes at the same time. I am presenting a free financial planning workshop on tax-efficient college savings for Texans at the Keller Public Library on Tuesday, August 16 at 6:30 pm. As kids head off to schools for the fall and the focus is on education, it’s a great time to look ahead and make plans for funding college tuition.
Workshop attendees will learn:
- Options available to save for college
- How college savings affects financial aid
- What unique opportunities we have as Texas residents
- How to skip paying sales commissions on your college savings investments
- How to minimize investment risk as your child gets close to college
Registration is encouraged for planning purposes to library@cityofkeller.com. I hope to see you there!
Insurance When a Child Goes to College
August 1, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
As you send your child off to college, you probably have a lot of things on your mind, such as whether your child will eat right and get enough sleep, how to pay tuition, and what to do with that empty bedroom. And although insurance may seem like a low priority, there are some important issues you should consider.
Health Insurance
Even if your child isn’t a student, the Patient Protection and Affordable Care Act requires your medical plan to extend dependent coverage for your adult child up to age 26. But if the plan is an HMO and your child’s college is far from home, you should check in advance on whether HMO-approved providers are available in the area. If they aren’t available, one option is to purchase health insurance coverage through your child’s college. Many colleges and universities offer low-cost health insurance for students.
Property Insurance
If your child will be living in a dorm or other university housing, his or her personal property will typically be covered under your homeowners insurance policy. However, you may want to check your policy for coverage limitations on certain items (e.g., computers and stereos). If your child moves out of the dorms and into an apartment, his or her personal property will usually no longer be covered under your policy. In that case, he or she should purchase a renters insurance policy to cover his or her possessions.
Auto Insurance
If your child will be taking a car to school, make sure that the car is properly insured. If the child owns the car, the insurance policy must be in his or her name. If the child is “borrowing” a family car, he or she must be listed as a driver on the insurance policy. Some insurance companies may require the child to be listed as the primary operator, since the car is in the child’s possession and not the parents’.