Citi Personal Wealth Management
You and your future spouse are not only romantic partners—you are financial partners, too. As a result, you'll need to address several questions: How far will you go in merging your finances? Should you have a joint checking account, separate accounts or both? Who will pay the bills? If you're both working, whose employer–provided health plan should you use? Perhaps most important, when it comes to spending and taking on debt, do you have similar attitudes-and, if not, what's a sensible compromise?
As you tackle the financial issues that come with marriage, here are some steps you may want to consider:
To get off on the right foot, you should probably each disclose everything about your finances, including portfolio balances and debts. For example, if one or both of you have a lot of debt, tell your partner how much it is and how you plan to pay it off or reduce it to a manageable level. If there is a substantial difference in your net worth or this is a second marriage for one or both of you, you may want to consider a prenuptial agreement.
To cover the utilities, rent or mortgage, groceries, and other shared expenses, you might set up a joint checking account. Each of you may also want your own bank account and credit cards that you can use for your own spending. However, be careful about applying for too many credit cards: depending on how you manage your debt, that could hurt your credit score.
If you're both working, you may be able to save money by eliminating any duplication of health care benefits. Just figure out who has the best coverage for the cost involved. Review your benefits to find other offers, like life insurance for your spouse at a reduced cost, for example.
While you're dealing with employee benefits, consider whether you ought to change the beneficiaries listed on your company-paid life insurance and on your employer's retirement plan.
You may want to revise the beneficiaries on any individual retirement accounts (IRAs) and any individual life insurance policies. Remember, these beneficiary designations—and not your will—typically determine who inherits these types of assets. Also, if either of you has a new name, you'll need to change employee records and contact investment companies, banks and Social Security Administration. Don't forget to change the name on your driver's license, passport and credit cards.
You may need insurance beyond what your employer provides—especially if one spouse is coming to the marriage with dependents, you intend to have children quickly, or you plan to take out a mortgage to buy a home together.
If this is a first marriage and you have relatively modest assets, simple wills may suffice. If you have greater assets or there are children from earlier marriages, you may need to engage in more sophisticated estate planning.
If you both work, you could be unpleasantly surprised to find that your income tax bill may be higher as a married couple than if you had stayed single, particularly if you have above-average incomes. Consider speaking with your tax advisor to understand the potential impact on you and your spouse.
Overall, as you and your future spouse review your personal finances, a Citi Personal Wealth Management Financial Advisor can help create a financial plan to pursue your financial goals.
Citi). Not all products and services are provided by all affiliates or are available at all locations. CPB personnel are not research analysts, and the information in this Communication is not intended to constitute
research,as that term is defined by applicable regulations. to footnote reference 1
Citi Personal Wealth Management is committed to helping you work toward your financial objectives and a more secure future. To learn more about strategies that may help you reach your goals, speak to a Citi Personal Wealth Management Financial Advisor.
To improve financial aid eligibility for your child, consider these four points.
Consider taking certain steps before and after the baby arrives to make the financial side of parenting a little easier.
Get ideas on how much you should set aside for a financial emergency and sources of funds to tap into.
The above content is for informational purposes only and contains a summary of the topic and is not intended to be a comprehensive discussion, including any legal or tax ramifications of the strategies or concepts described herein.
This is not an offer to buy or sell any of the securities, insurance products, investments, or other products named.
This material is derived from sources believed to be reliable, but accuracy and completeness are not guaranteed.
Citigroupand its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Citi Personal Wealth Management is a business of Citigroup member .
Citigroup Life Agency (
CLA) offers insurance products. In California, does business as Citigroup Life Insurance Agency, (license number 0G56746). Citibank, CGMI, and are affiliated companies under the common control of Citigroup
© CitigroupCiti, Citi and Arc Design and other marks used herein are service marks of Citigroup or its affiliates, used and registered throughout the world. 7/20