If you are considering whether or not you should combine investment accounts, here are the steps you need to take.
Taking the leap and tying the knot can be an exciting moment for couples. Marriage can mean joining your lives, as well as your assets. One issue that very often comes to the table shortly after saying “I do,” is whether or not newly-married partners should combine investment accounts.
While it may not be for everyone, combining investment accounts is one way to become financially honest with your spouse. This can mean a whole new level of commitment, engagement and intimacy in your marriage.
Assuming you want to take that route, what is the best way for you and your partner to combine investment accounts?
Short-term vs long-term goals
What are your goals for both the long-term and short-term? Are they in line with your partner’s goals? Every investor has his or her own unique goals, so if you want to combine investment accounts it’s important to make sure you’re both on the same page. Do you both want to buy a home within the next five years? Is one of you more concerned about retirement than the other? Knowing where you both stand can help you develop a plan that will be mutually rewarding for the both of you in the future.
Make a Plan
I have often spoken to clients and readers alike of the benefits of the 20-30-50 plan as a way of laying out and organizing your income and expenses. This is something you will absolutely have to do with your partner if you decide to combine investment accounts.
Once you’ve set and agree upon your goals (buying a house, saving for retirement) you should allocate your expenses (one of you will pay for heating while the other will pay for electricity, for example) and then discuss how much you will both invest, and what accounts can (and should) be combined. 401(k) accounts, for example, cannot be jointly owned, while other accounts can be. Couples that want to combine investment accounts should examine their investments and choose the options that will minimize their fees.
Seek a trustworthy financial advisor
Before you take the leap and combine investment accounts, make sure you have seen a trustworthy financial advisor that will help you review your finances and set you up to reach your goals.
At LexION Capital we understand that our clients have different needs and are at different stages in their lives. This is why we work hard to develop unique strategies that help them reach their goals – whatever they might be.
Are you interested in finding out how a LexION Capital advisor can help you combine investment accounts? Do you seek financial advice from an advisor you can trust? Reach out to us today and see how we can help you get on the path to success.