So you’ve zeroed down on the venues, finalized the guest list, and colour-coordinated the wedding trousseaus, but have you had a chat about finances with your soon to be spouse? The prospect of discussing money with your spouse isn’t nearly as exciting as discussing your next holiday, but it is a very important conversation to have. To ensure a harmonious marriage and tide over any difficult situations you might face as a married couple, here are five money-related questions to ask your future spouse.
#1 Do you have any financial liabilities I should be aware of?
Your future spouse’s financial past may not be your burden to bear, but knowing about their financial liabilities beforehand is crucial. In a credit-driven economy, past liabilities can affect your future credit ability; so it’s best to know how you both will manage things before investing in any major purchases. Refinancing major debts that you can pay off together and keeping bigger purchases for later helps keep the ship steady and prepare for major commitments ahead.
#2 What are your long-term financial goals?
You may want a house of your own while your future spouse might have a car on their mind. But getting married means you’ll achieve these goals together, which is why knowing about them is the key to successful planning.
Since you will both manage your finances together, it is best for both to invest life insurance . This way neither one is burdened by any financial obligations or is able to replace lost income should one of them pass away. Also, with ULIPs (Unit Linked Insurance Plans) easily available online, insurance has become lucrative for younger investors who can invest in market funds with varying risks while remaining insured.
#3 How many children do you want to have?
Children are the biggest financial commitment in a marriage, and to be financially prepared to ensure their well-being it is important to know how many children your future spouse wants to have.
Besides the investments you will be making together for your life goals, financial planning for children will help you come to a consensus on when you can have children. Investing in life insurance plans that offer partial withdrawal is a great way to ensure funds for every major parenting milestone, while also ensuring your child’s well-being in the absence of either one of you.
#4 What are your retirement plans?
Most professions these days offer no retirement security; leaving you to make retirement arrangements yourself. Asking your spouse about their retirement plans helps you gauge potential financial responsibilities and enables you to invest in retirement planning early on. This way you can save up enough to maintain your lifestyle after retirement.
Think of investing in life insurance through Unit Linked Pension Plans that let you invest in a broad range of market funds for anywhere between 15 to 35 years, while providing you with life insurance cover to boot.
#5 Where and how do you invest?
Knowing where and how your future spouse invests is important because it suggests the kind of investor they are. Some of us are okay to take more risk in return for greater rewards. However, some are content knowing our investments are secure, even if they aren’t yielding astronomical returns.
Balance is the key here. If your spouse prefers to play it safe with investments, discuss how they feel about your taking a little risk for greater returns. On the other hand, if your future spouse’s investment portfolio has risky investments, you might want to play it safe with some conservative ones of your own.
Marriage is a life-long commitment and it’s best to know what you are getting into beforehand. Since money is a necessity for most of your life’s goals, financial transparency with your future spouse goes a long way in building trust and commitment — the key to a successful marriage.
