Within your daily interactions with your partner, discussing long-term finances might not be your priority. Everyday financial matters and expenses are often a source of conflict, contributing majorly to divorces. However, it’s crucial to have discussions on significant financial topics to avoid unpleasant surprises later. Here are five essential financial conversations you should engage in with your partner to align your expectations.
1. RETIREMENT VISIONS
Everyone has an idea of their ideal retirement. Your dream might be to watch your grandchildren play in your backyard, while your partner’s might be to own a bed and breakfast in Costa Rica. An excellent starting point for discussing finance with your partner is your anticipated retirement lifestyle and the necessary savings to realize these dreams. Many dream of exploring the world post-retirement but sometimes their fixed income and budget constraints hinder these aspirations. Ensure you strategize early to fulfill your retirement desires.
2. LIVING TRUST
Have you thought about what would become of your assets if anything happened to you and your spouse? Without a living trust or will, your wealth could get entangled in prolonged legal battles. This is particularly key for couples with young children. A living will dictates what happens to your children and assets if both partners pass. Whoever you assign as your children’s guardian should ideally be the beneficiary of your estate. Ensure to discuss these crucial financial matters with your spouse.
3. CARE FOR YOUR AGING PARENTS
Considering care for your parents in their elderly years is a necessary discussion. Know your parents’ preferences too. While some parents find assisted living facilities suitable, others may prefer care from their own children. Are you and your spouse in agreement on how your parents should be cared for when the time comes?
4. YOUR OWN SENIOR CARE
Imagining the type of care you’d need in your old age, once you’ve enjoyed your retirement, is crucial. Do you and your partner have plans regarding your own senior care? Personally, I wouldn’t want to be a burden on my children and would be comfortable in an assisted living facility in my twilight years, but I know I’d have to draft a financial blueprint for this.
5. CHARITY DONATIONS
Lastly, don’t overlook your charitable deeds. Are you and your partner in sync when it comes to giving back to your community? Start discussing how to contribute to local charities that resonate with your values. If finances are stretched, consider volunteering your time instead to meet your charitable objectives.
Have these financial conversations taken place between you and your spouse? What strategies have helped you align your views on these subjects?
