If you follow our work here at Bespoke Edge, you’ll know that we build quite a few custom wedding suits and tuxedos for our grooms. Consequently, we’re always working to create valuable content on style and groom’s etiquette. But the other day I was thinking that maybe we’re missing a key component: What happens after the wedding.

And a conversation that will come up very soon after the wedding revolves around financial planning. Clearly, financial planning is outside of my wheelhouse, but fortunately, I know a lot of the right people! I reached out to my friend Todd Miller, a registered agent with the New York Life Insurance Company, with some simple questions that I think are on the minds of many newlyweds…

1. [Ryan] For a newly married couple, are there advantages to sharing certain financial accounts? If so, which ones? And where would you recommend that people begin?

[Todd] Yes, most of the time you can share in a tax-free savings (for a home, college savings for kids, vacation planning or retirement planning) that will grow at a better rate. Essentially, these type of plans would be used in conjunction with life insurance and the reason for their value to grow more quickly is simply because of the compounding returns with more money being added to the account. Most IRA’s, investments and annuities people set up individually rather than as a couple because the growth is determined by the market rate of return. I always recommend that a couple start with whatever goals are most important for them. That could be any of the types of plans I listed above. Not necessarily a certain plan because everyone has different goals and situations.

2. I think that a lot of folks, especially millennials, don’t give much thought to things like life insurance and long term financial planning. How should people be prioritizing this sort of planning?

You’re right, but the best planning is the planning that is done early. It is very hard to “make a comeback” when they are so far behind the 8 ball. The biggest financial problem I run into with my millennial clients is that they feel invincible. Or that type of feeling that “nothing will happen to us, or me.” Unexpected expenses or life events happen to everyone and without the necessary planning in place people fall behind and have trouble getting back to their goals/planning. If they can prioritize their goals and put the necessary planning in place, these life events can really help to thwart the unexpected expenses. Sometimes it’s as easy as setting up different insurances: like disability ins., life ins., auto ins., home ins. etc. And sometimes it’s more on the planning side of having an emergency savings or debt management.

3. What’s the best financial advice that you can give to a 20-something couple? Is it different from a newly married couple in their 30s?

Best financial advice for a 20- something couple I would say is to not wait to start something. A lot of younger couples think that they aren’t making enough or don’t have enough to really make a difference. I firmly believe that if you do the best with what you can, you will in turn get the best possible results. For couples in their 30s I do think it is a little different. They usually have more assets they need to be covered for in the event of something happening against their plans. The more assets you have the more “safe-guard” protections you should need. Of course, in both of these examples every couple and individuals situation is different. Some have been in college longer, working longer, traveling, have bigger assets etc.

Have more questions?

Obviously, this article only scratches the surface, so get in touch with Todd and ask him the tough questions!

Tel: 406-698-3015
Office: 303-403-5600 ext. 5612