| Finacial
Future
A listing of the finest Professionals available in the area to
help in planning your Future Together is presented in the table
below. To learn more about each company, click on the Company Name
to see their Ad, click on their Web Site hyperlink to access their
web site, or contact them through the Email hyperlink in the table
below.
To learn more about things to consider in Your Future Together,
please read the article presented following the table.
All phone numbers are in the 805 area code unless
otherwise noted.
Your Future Together
…A New Beginning
It's difficult to imagine now, but there will come a time when
your wedding and reception will have been successfully completed.
All of the parties will be over. You will have experienced that
incredible honeymoon you've dreamed of for years. You will have
even completed writing all of those personalized Thank You notes!
Once the big event becomes a memory, it will be time to begin
some additional planning...planning for all aspects of your future
together. You are no longer single, and that brings with it a
lot of great benefits as well as some new responsibilities. How
do you identify what these benefits are and how do you maximize
them? How do you begin planning your future together? As in planning
your wedding, it is time to get organized and educate yourself.
Some of the first things you should think about as a married person
are:
- Where to live?
- How to manage your money?
- What about income taxes?
Your First Home
Now that you are married, you likely have two incomes! While many
expenses don't change with marriage, one really big one does - the
cost of housing. You now only need one house between the two of
you. With all of the money you will be saving by cohabitating, it
might be time to think about buying a house! There are way too many
benefits from home ownership to discuss in this space, but here
are three biggies: 1) appreciation in value, 2) tax deductions,
and 3) shelter from inflation.
If you are young and just married, buying a home may seem out of
reach. However, when you take into account the new mortgage programs
and the tax benefits of home ownership, you can probably afford
a lot more house than you can imagine...a lot more. Plus, buying
a home is one of the best investments you will ever make. When you
pay rent, that money is simply gone forever. But when you pay a
mortgage, that money continues working for you in multiple ways.
Set some time aside to investigate the possibilities. Interview
some local realtors and loan consultants and select one of each
with whom you feel you can work best. Your realtor and loan professional
will help you to understand how much house you can afford. Your
loan consultant can even get you pre-qualified so that you will
be in a strong position when making an offer on a home.
Your realtor can recommend communities and neighborhoods that fit
your style and budget. Remember that your first home will likely
be a starter home and not your dream home. The important thing in
the California real estate market is to get into your first house
as soon as practical, rather than waiting to be able to afford your
dream home.
Odds are, your savings and salary increases will never surpass
home price appreciation. Resulting in your dream home forever remaining
out of reach. It's wiser to buy a starter home and then use your
home value appreciation to leverage yourselves into a nicer second
home that more closely approximates the home of your dreams. Remember...the
sooner you start down the path to homeownership, the sooner you
can start accumulating equity.
Money Management
Studies show that couples fight about child rearing, sex, and money.
We'll leave the child rearing and sex up to you, but we can give
you a hand with the money issue.
You are likely accustomed to managing your own money, but now its
time to merge your money, to the degree with which you are comfortable,
with your spouse's money. You needn't do this all at once - It's
perfectly ok to phase into it.
You may want to start off by each having a separate checking account
plus one joint checking and savings account between you. Decide
how much money each of you will contribute to the joint checking
account (this may be the same dollar amount or it may be a percentage
of your respective salaries) and which bills to pay out of the joint
account.
Decide how much you want to put into the joint savings account
each month and try to be consistent. If offered a 401k at work,
try to contribute at least the maximum that your employer matches,
as this is a great tax break plus you are saving money. These are
just a couple of classic money management tips from a non-professional!
The best way to learn to manage money is to consult a professional
financial planner. These professionals keep up with all of the strategies
to maximize your income and minimize your expenses. Most planners
also offer complimentary initial consultations where you can learn
much more about the services that they offer. They can provide a
guide map to a financially secure future that is tailored specifically
for you!
Income Taxes
It doesn't matter if you got married on January 1st or December
31st… the IRS considers you married for the whole year. You
may still file a separate income tax return; however you will be
filing a separate return as a married person.
This change in marital status changes your tax burden. Is it now
better to file a joint return or to each file separate returns?
The definitive answer to that question is - it depends.
Tax laws can be complicated. It is advisable to consult a tax professional
in preparing your returns. Particularly when you have a change in
status, such as marrying. The fee that a tax preparer will charge
is often offset by the money they can save you. She can also help
you in tax planning to minimize your future tax burden.
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