DONNELLY WEALTH ADVISORS WELCOMES LAWTON MARKETING GROUP!
GenVest Planning welcomes our new marketing consultants, Lawton Marketing Group. We are excited to begin our work together!
SCULPTING THE MINDS OF FUTURE FINANCIAL PLANNERS!
Sculpting the minds of future Financial Planners! GenVest Planning’s Adam Werner recently led a Career Path Panel for the students of San Diego State University‘s Financial Services Department. Four advisors from different companies and different backgrounds had the opportunity to share their experiences with the financial professionals of tomorrow. #GenVestPlanning
THE 10 “MUST-DOS” AFTER YOU SAY “I DO”
The 10 “Must-Dos” After You Say “I Do”
Start your marriage with a sound financial foundation…
-By Adam Werner, CFP®, April 12, 2017
Congratulations on the nuptials! In the eyes of your family and friends (and the US Government) the two of you are officially a family! New doors have now opened and it’s important to take the time to ensure you’re headed in the right financial direction. Here are some key things to do in order to save money and create a sound financial foundation for your marriage.
1. Medical Insurance – Who has the better plan?
Generally, you have 30 days to add your spouse to your employer’s health coverage. If you miss this window, then you will have to wait until the next Open Enrollment. Make sure you know the ins and outs of your policies so you understand which person has the better plan and/or the cheaper family plan. Remember that cheaper may not always be better.
2. Other Employer Benefits – Can either of you be added for free or for cheap?
Find out whether your employer offers other benefits to your spouse, such as dental or vision insurance. Consider disability insurance, especially if your spouse depends on your income. You may also be able to sign up for a flexible-spending account or health savings account and use the money tax-free for either spouse’s medical expenses.
3. Bank Accounts, Budgets & Debt – Understand where your stand and how you’ll work together.
This topic can get deep real quick, so we’ll stay high level. When you get married, it’s very important to have an open conversation about your combined assets, debts and how you’ll manage your household cash flow. You’re officially and legally on the same team now. Below are some important points to discuss:
• Consider opening a joint bank account to cover household expenses.
• Compare all assets and debts. Talk about what goals each of you have with your assets.
• Make a plan to pay off any debts (note: student loan interest deduction maxes out at $2,500yr and the income limit is $160k for married couples filing jointly).
• Do your separate incomes get combined, stay separate, or a bit of both?
• Contact your bank and credit card lenders to add your spouse as an authorized person to discuss the accounts. Otherwise, in the event of an emergency your spouse cannot access these.
• Check credit scores to ensure there are no surprises (use www.creditkarama.com for a quick free look).
4. Update your Auto, Homeowners, or Renters Insurance – Combine and save!
Talk to your existing insurance providers about combining policies AND shop competitors for a better deal. Many providers offer discounts for multiple cars and multiple policies. Also make sure you’re both on the same page about coverage amounts. Remember that your household’s assets are now combined: cheap, low coverage + a major accident = the potential for your household to lose personal assets from a lawsuit.
5. Tax Updates – Withholdings and tax breaks may change.
Now that you’re married, your combined adjusted gross income (AGI) may change your tax bracket and certain income-based benefits. Below are a few notable ones:
• Tax withholding on your paycheck may need to increase or decrease – Kiplinger’s website has a quick calculator for this, or use the IRS’s Tax Withholding tool.
• The ability to deduct your IRA contributions may change – phase-outs can start at $99k AGI.
• The ability to contribute to your Roth IRA – phase outs can start at $186k AGI.
6. Change your Retirement Beneficiary Designations – These are legally binding!
Update your beneficiaries for IRAs, 401(k)s and other retirement plans. This is a must even if you have a Will giving everything to your spouse. If you named your parents or other relatives as your beneficiaries when you first signed up for your 401(k) at work, for example, they’ll get the money in your account after you die unless you change the beneficiary designation.
7. Life Insurance – Update the beneficiaries and review your needs.
If you have existing policies, be sure to update your beneficiaries for this too. These documents are legal contracts and the proceeds will NOT automatically go to your new spouse.
If you don’t have any policies, it may be a good time to review whether you need one. The first question to ask is: “Will one of you be significantly impacted if something happens to your spouse?” I generally encourage people to think about life insurance coverage amounts in three levels: (1) Enough to cover your debts; (2) Enough to maintain your family’s lifestyle for a while, or at least until the kids are 18; (3) Get the kids through college and your spouse to retirement. For most circumstances, I generally encourage only using Term Insurance. Whole and Variable Life coverages can be beneficial in unique cases, but Term is generally the cheapest and simplest way to go.
WELCOME TO GENVEST JENN!
GenVest Planning and Donnelly Wealth Advisors would like to introduce our newest Paraplanner, Jenn! We are very excited to have her and looking forward to introducing her to each of you!
SUR LA TABLE
We had a great time cooking, drinking, and laughing with a few of our friends. Thank you to everyone who could make it and thank you to Sur La Table for a fun, hands-on experience. We will certainly be back!
I am a Certified Financial Planner that is interested in helping Millennials successfully navigate their financial future.