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Agreeing upon how to manage money is a crucial aspect of any successful marriage. Deciding how much to spend, how much to save and planning a budget can be a challenge. Discuss, as a couple, how you want to combine funds, pay bills and manage your money. Remember to compromise!
You can open a regular savings account with very little money and make deposits at any time. Interest is earned on average daily balances. Be sure to check with your financial institution regarding any fees for balances that fall below a required minimum or for electronic withdrawals. Once this is established you will be able to set up joint checking and other accounts.
Certificates of Deposit: These lock savings for one month to five years. CDs offer guaranteed rates and insured safety.
Fixed Annuities: Similar to CDs but obtained through insurance companies, you can earn market-linked gains without risk.
Roth IRA: The benefit of a Roth IRA is tax-free earnings growth. Contributions are not tax-deductible, but can be removed at any time without federal taxes or penalties. Withdrawal of earnings is tax-free if certain distribution rules are met.
Stocks: Liability-limited ownership in a company where your investment may be riskier, but is highly liquid and can yield strong long-term or short-term growth.
Mutual Funds: Considered less risky than stocks as they consist of a professionally-managed, highly-diversified mixture of stocks and other investments.
In the future, times will arise when you’ll need to consider a lending solution. Most financial institutions offer various lending plans for new and used auto loans, home equity loans, home equity lines of credit, personal loans, credit cards and recreational vehicle loans. Discuss these options with your banker, who may have some creative ideas to save you money.
Buying or building a home is one of the smartest decisions you can make. It may also be one of the largest financial transactions for which you are responsible. Whether buying your first home or building the home of your dreams, check with your financial institution for the following lending solutions.
Fixed Rate Mortgages: These offer fixed rates and low down payment options.
Adjustable Rate Mortgages (ARMs): Can be a great option if you plan to live in your home for less than 5-7 years. Interest rates can fluctuate throughout the loan term.
Building Lot and Construction Loans: Buy a lot, hire a contractor and build your dream home. Move to a permanent financing solution upon completion.
Home Equity Loans and Lines of Credit: Low closing costs and deductible interest.
Bridge or Temporary Loans: Short-term financing using the equity in your existing home to buy a new one without waiting.
Down Payment Loans: These allow you to use a marketable asset to insure the loan.
Debt Restructuring: Enables you to reduce your monthly expenses by consolidating your debt into one monthly payment, or restructure your existing debts to lower your monthly payments.
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