Insuring a New Marriage

Financial Reporter for Babyboomers.TV

Since the last newsletter, I have had the joy of walking my daughter down the aisle in the course of her marriage to my new son-in-law. They spent a considerable amount of time in the planning for that memorable occasion. However, re-evaluating their insurance coverage wasn’t one of the items uppermost on their minds and neither is it in the minds of most newlyweds. But the right insurance programs can go a long way toward shielding you against the kinds of financial calamities that can strain and sometimes break a marriage. In that regard, we thought we would indicate several key insurance areas that we recommend newlyweds (and all married folks, for that matter) review.

It’s a given that couples should have life insurance if they have or expect to have children, or if one spouse earns most or all of the couple’s income. But, it is often suggested that life insurance is not needed where couples have no dependents and where both spouses work in comparable-paying jobs. This may be suitable in some cases, but you may still want to consider additional life insurance beyond what is offered at work.

The fourth advantage of getting life insurance early for many newlyweds is that they can lock in low premiums while they are young and healthy. Lastly, while group term insurance is probably available at work, it can’t go with you if you leave your job, and it often is inadequate. Also, you don’t want to need additional life insurance at a time when you’re uninsurable for an individual policy.

If either one or both spouses bring existing life insurance to the marriage, they’ll probably want to name their new spouse as beneficiary. Otherwise, death proceeds could end up going to an ex-spouse or parents.

Competing with life insurance premium dollars are other insurance needs for newlyweds, and high on that list should be disability insurance. This insurance is designed to partially make up for lost wages should you not be able to work because of an injury or long-term illness. Statistically, young people are more likely to suffer a lengthy disability than to die prematurely. Group disability coverage at work typically is not sufficient, so you may want to augment it with a private policy. While any worker, single or married, should consider this, it becomes even more important when you have a spouse, particularly one who may be dependent on your income. Newlyweds commonly live in apartments or rented houses before buying their first home or condo, yet they often mistakenly believe that the landlord’s insurance will cover damage to their personal property. Renter’s insurance is inexpensive and easy to get.

So, for newlyweds, it is clearly the time now to assess your insurance coverage and ensure its adequacy. The wedding planning came to its conclusion and the serious side of the new marriage in terms of financial planning must come into focus. If we can be of any assistance in answering your questions, please do not hesitate to give us a call.

Neal A. Deutsch is a Certified Financial Planner™ & Registered Securities Principal, offering securities through First Allied Securities, Inc., member FINRA/SIPC. Neal is President of Chestnut Investment Group in Suffern, NY, helping people with financial planning since 1984. Please feel free to call Neal at 845.369.0016 or email him with your questions at neald@chestnutinvestment.com. Visit his website at www.chestnutinvestment.com

Packing Right for Your Winter Honeymoon

Packing Right for Your Winter Honeymoon

(ARA) – You made it through the wedding, so now comes the relaxing part — your romantic honeymoon in a faraway destination. But what do you pack and how much do you need? Gone are the days of multiple suitcases stacked at the doorway to accompany you on your flight. With airlines charging fees for checked luggage, today’s friendly skies will only allow you just so much, so you’d better make the most of your checked bag and your carry-on.

There are three basic honeymoon destination types: the beach, the mountains and the city. Each one requires careful pre-planning on your part to make sure you have enough, but not so much that you wind up forking over extra cash at your airline’s check-in counter.

If the beach is your destination — a great choice for all the northerners who spend most of the winter digging their driveways out from under mounds of snow — there’s a chance that you may have to carry on all your items if you or your spouse want to bring along the golf clubs. But have no fear, it can be done.

“Chances are you’re just going to be at the pool most of the day, so two swimsuits, a wrap or two and flip-flops will take care of most of your daytime needs,” says Anne Hankey, a fashion marketing & management instructor at The Illinois Institute of Art – Chicago.

Hankey also suggests neutral T-shirts, sexy dresses that can be dressed up or down, shorts, a couple of skirts and a pair of casual and dressy sandals. Don’t forget your sunglasses, a small, unique “statement bag” and a big bag you can use as a carry-on, on the plane and as your beach bag once you get to your destination. If you have room, Hankey also suggests a big collapsible hat, but you can always buy one when you land.

And what do you wear on the plane when you’re taking off in sub-zero weather and landing in a heat wave? “My favorite trick is to wear black exercise clothes,” says Stephanie Schuller, fashion marketing and management instructor at The Illinois Institute of Art — Chicago. “They’ll insulate you so in cold weather they’ll keep you warm and they can keep you from sweating in warm weather because they are designed to regulate your body temperature when you work out.”

If you decide to head to a winter ski resort on your honeymoon, you can still keep your bulkier winter wear to a minimum. Hankey suggests you pack your ski boots with your skis in your checked luggage. “Wear your ski parka on the plane with a nice pair of jeans, a sweater and casual boots.

Bring two pairs of leggings and a few thermal T-shirts to layer under your parka when you hit the slopes and don’t forget your socks, gloves and ski goggles. “Pack a few sparkly tops or tank tops that you can pair with the jeans you wore on the plane and don’t forget your swimsuit for the hot tub,” says Hankey.

Schuller also suggests a matte jersey dress that can be rolled up and won’t wrinkle for one special night out. Just throw in a pair of dressy heels to wear with the dress and jeans and a pair of flip-flops for the hot tub and you’re ready to go.

If you decide to jet off to a destination like Paris or New York for your honeymoon, Schuller stresses you should not forget to bring along a pair of comfortable and stylish shoes on your journey.

“You can pack a little more, because you won’t have golf clubs or skis in tow,” says Hankey. She suggests you wear jeans and flats on the plane, along with a simple sweater and dressy jacket or coat. Bring a pashmina in a fashionable bag as your carry-on.

Your suitcase should contain a couple of simple dresses. “Wrap dresses work very well because you can roll them up,” says Hankey. Don’t forget your basic black slacks and a variety of thin tops and sweaters that can be dressed up or down. “Jewelry and a Hermes scarf can really transform an outfit,” she points out.

No matter the destination, Hankey stresses that you should always take along travel size toiletries — they’re usually under the three-ounce carry-on limit and take up little room in your checked bags.

Schuller adds, “Don’t forget to allow room for souvenirs, because if you over-pack, you can’t bring anything new home.”

Both Hankey and Schuller have one last piece of advice: don’t forget the lingerie. As Schuller points out “it’s not like it takes up a lot of room.”

To learn more about The Art Institutes, visit www.artinstitutes.edu/nz.

Courtesy of ARAcontent

Bliss-building Money Tips for Newlyweds

Bliss-building Money Tips for Newlyweds

(ARA) – You’re finalizing wedding plans and are eager to sip champagne with your guests. But are you and your fiance prepared to marry your financial lives together once the “I do’s” are said, and you’ve returned home from your honeymoon in paradise?

Poll after poll shows that disagreements over finances are the No. 1 cause of divorce in America. Finance and family counseling experts alike encourage couples to discuss and plan their finances together before tying the knot.

“Communicating about investing, savings, paying monthly bills and how you’ll divvy up fun money with your future spouse helps you to start your life together on the same foot,” says Scott Oberkrom, director of Community Investments at American Century Investments.

Visit www.YesYouCanOnline.info and click on “Healthy Ideas” to learn more about financial planning for soon-to-be married couples.

Some tips engaged couples can follow to get those money discussions under way include:

1. Pick a non-emotional time to talk about finances. This discussion could potentially be stressful, and doesn’t mix well with the stresses of wedding planning. Make sure you pick a quieter time without the distractions of guest lists, hotel reservations or flower arrangements to interrupt.

2. Talk about your finances. Determine if you and your fiance are spenders, savers, or a mixture of the two. Also discuss what you’ll be bringing into the marriage — debts, child-support payments, lack of credit, etc. Look up your credit reports and scores together, and determine if you’ll be better protected by joining your accounts or keeping them separate.

3. Decide how you’ll track and pay for expenses. Who is going to be paying what bills? What is your family budget going to look like? Can both of you live comfortably off that budget? These are important decisions that should be made before the grand march down the aisle occurs.

4. Establish joint investment goals. You need to consider both short-term and long-term goals, ranging from buying a new car to putting your future children through college. If you’re combining families, decisions about investing need to be taken care of immediately. For all your investing goals, talk about your time frame for reaching each goal, the different views you may have toward taking investment risks and then choose the vehicles, such as mutual funds, to invest in to help reach those goals.

5. Diversify your portfolios. The adage “Don’t put your eggs in one basket” comes into play here. As the recent economic crisis demonstrates, having finances invested in multiple areas prevents you from feeling as much pain when the markets suffer a set back. Go over your individual investments and investigate where you might be doubling up. You want to have a mix of investments to even out overall portfolio risk, although diversification cannot ensure against loss.

Time will pass by quickly, so make sure you and your intended are prepared ahead of time for financial hurdles. Visit www.YesYouCanOnline.info for additional tips.

Courtesy of ARAcontent

Before Your ‘I Do’s,’ Do Financial Review First

Before Your ‘I Do’s,’ Do Financial Review First

(ARA) – One thing you can definitely say about the current credit crunch – it sure isn’t romantic. But for couples about to exchange “I do’s,” a clear understanding of each other’s credit history as singles, and how they will use credit as a couple, is vital to ensure their future wedded bliss.

All signs point to the reality that credit is likely to be difficult to get for a while, even for those with good credit scores. Getting married is a life-changing event that will impact your credit rating. It’s important for couples to be open and honest with each other about their credit histories, credit-use habits and plans for using future credit.

Credit has become an integral part of the American institution of marriage. If you are newlyweds, you’ll likely require credit to fund some of your basic needs and dreams – from buying your first house to financing the minivan you’ll need to transport the big family you plan to have. Your blended credit rating will decide how easy or difficult it is to secure those loans at favorable rates.

So how can you prevent the credit crunch from putting the squeeze on your plans for building a life together? Here are some basic tips:

First, exchange credit reports. As a single person, your credit score was a private matter between you and the people you borrowed money from. When you’re married, your credit history becomes linked to your spouse’s and he or she deserves to know ahead of time how you rate with lenders. Knowing what’s on your credit report is the first vital step toward reaching your personal financial goals as a couple. Get a copy of your credit report at www.FreeCreditReport.com and present it to your intended.

Next, set mutual priorities and goals. If you both have significant debt, perhaps your goal will be to pay that off before incurring any new debt. Pool your earnings to pay off the highest interest debts first – his $9,000 credit card debt may actually cost you more in interest each month than her $14,000 auto loan.

If you both are relatively debt-free, good for you. You can turn your attention to setting savings and spending priorities, including saving for a down payment on a house (the low-rate, zero-down loan is virtually extinct), putting money aside for your retirement or building up your cushion of savings in case the economy gets worse and one of you loses a job. Decide which priority is highest on your list, agree on a time frame for reaching that goal and organize a game plan for getting there.

It’s important to have these discussions before the wedding. You’ll both enjoy your big day more knowing you’re on the same page regarding your financial future.

It is easy to check your credit reports. Web sites like www.FreeCreditReport.com allow you to get your credit report and credit score which gives you more control over your personal finances.

Courtesy of ARAcontent