If you said, “I do,” be sure your +1 is active in your retirement planning.
Federal retirement might not be on your list of the topmost romantic conversations for Valentine’s Day date night, though I’d argue otherwise. Ensuring your spouse is the named beneficiary on your paperwork says I love you better than a box of chocolates.
Conversations during “financial date nights” are one of the best times to talk with your spouse and make important family decisions, like when to buy a house, saving for your kid’s college, or remodeling the kitchen. Retirement planning should be elevated to the top of the list for financial date night.
To help you get started, here are three important questions you and your spouse should answer together LONG BEFORE you retire:
1. When do we want to retire?
Your personal timeline will play an important role in creating an actionable financial plan for retirement. Do you and your spouse see yourselves retiring at or around the same time? Or will one of you leave the workforce before the other? Knowing your numbers helps you decide.
2. What do we want to do in retirement?
Planning to travel and pursue activities together, or will you do your own things? If one of you wants to spend your time volunteering and the other wants to fish in tournaments around the country, sit down and talk about how you’re going to make that happen. What’s involved? What’s the financial investment?
Be honest about what you envision, and be intentional in your planning and follow-through. Date night is the perfect time to hold each other accountable. Knowing your numbers helps keep it real.
3. How much will retirement cost us?
As a couple, your savings target will depend on your retirement vision and timeline. Begin by estimating what your annual expenses will be when you stop working. This won’t be an exact calculation—the goal is to get a ballpark idea of what your retirement will cost. Be specific and write your expenses down.
Important: Your financial futures deserve more than one conversation, and your plans will invariably change over the years depending on how far from retirement you are. Setting aside time for a financial date night helps you share your vision of how you want to spend and save before retirement and in retirement, and it will make a huge difference in the long run.
Be open. Be honest. And recognize that compromise is part of the marriage contract. Knowing your numbers helps set boundaries.
Focus on Looking Forward
Talking about finances with your significant other on Valentine’s Day probably doesn’t sound very romantic. However, given that money is one of the top stressors in relationships, it’s a habit worth embracing. Discussing finances with your partner can build trust and create bonds over shared financial aspirations when you work toward common goals.
Your agenda for a “financial date night” doesn’t need to be long or complex. The objective is to get a pulse on where you are today, what you are working towards, and the specific actions to get there.
Remember: Financial date night should be focused on the future, not dwelling on the past. Though it’s important to understand how money has been spent in the past, do not start the conversation there (have the conversation, but not on date night!).
Dwelling on who spent how much and where is a surefire way to spark defensiveness in your partner, resulting in a halt to the conversation altogether. Look forward, not back. Knowing your numbers helps focus on the future.
This Valentine’s Day, don’t just dream about a lifetime with the one you love. Talk to your spouse about your dreams for the future—and craft a plan for how you will reach those goals together.
And even better, schedule your financial date night to coincide with a FedImpact Retirement Workshop in a city near you (though our workshops are technically during the day)!
*********************************
For an introduction to a financial professional in our network: FedImpact.com/request-to-meet
View all Articles: FedImpact.com/articles
Find a comprehensive retirement workshop for your area: FedImpact.com/attend
