What Is a Marriage Built On?

Valentines Day is upon us once again and marriage proposals will once more abound. Two people pledge themselves to each other and consider a perfect future together.

Last year at this time I wrote a list of ways to save money on wedding expenses. But those expenses pale in comparison to the magnitude of the money issues the couple may face in the future.

Credit issues in existence today and those incurred in future months may be enough to strain the union and possibly break it. “True love” is truly blind when it comes to financial concerns. Live for today and tomorrow will take care of itself is the mantra. I wish this were true.

I am amazed at the number of my clients who never discussed the credit baggage being brought into the relationship. This can relate to either or both partner(s).

First, they do not discuss the magnitude of the debt being brought to the marriage. Second, there is little discussion concerning the reasons for the debt to exist at all. And lastly, there is no plan to resolve the debt and minimal concern about building future wealth.

Financial stress is the #1 reason for a failed marriage. Our culture is built on the premise that we do not openly discuss our finances. Asking each partner to share their credit report with the potential spouse prior to the wedding is really getting into forbidden territory. Stress is created if there is “bad history” to explain to the partner. And it is human nature to avoid stress. But how much stress is created when income garnishment takes place shortly after the wedding??

Someone needs to take initiative prior to the wedding to make sure each knows the good and the bad of the current financial standing of each.

“Bad history” implies an individual has made poor decisions in the past and those actions are reflected as debt. So the question is: Has the past behavior changed to prevent future occurrences?

The next question is: How are you going to resolve the debt, prevent future debt issues and move toward way to protect against these market adjustments is to have some of your funds and income protected.

Own a fixed annuity. Issued by insurance companies, they are not driven by how Wall Street performs but simply pay a reasonable rate of return. They are not “sexy” as investments go, but I have not heard of a single fixed annuity that did not gain value as the stock-driven accounts floundered! Another solid idea is to purchase enough Disability Income Insurance, Life Insurance and Long-Term Care Insurance to protect and preserve your family’s way of life. There are lots of really great agents in our area so find one and spend a little time to do a complete review of your needs. If your situation calls for it, build a team of professionals to assure all the bases are covered. As you contemplate a gift for your loved-ones this Valentine’s Day, consider showing just how much you care by taking the right steps. Don’t leave your family’s future to chance. It’s liable to get snowed under if you do!

Wayne Lunday, LUTCF, CLU, ChFC is the owner of High Cascades Agency in Castle Rock. Wayne has been an active member of NAIFA, the National Association of Insurance and Financial Advisors since becoming licensed in 1979. High Cascades Agency is an independent agency offering Insurance through many different insurance companies. Wayne can be reached at 360-274-6991 or toll-free at 866-514-3356.