Did you know the advice that established couples had for newlyweds to help set up their new financial union for success was to avoid unmanageable debt and to start saving early for retirement?*
With the postponement of many weddings over the past two years, the number of weddings in the summer of 2022 could be record-breaking. Many of your clients are probably finalizing the details of this important life event right now. Here are some other tips you can give them to steer them toward a healthy financial
Before the wedding*:
Encourage your clients to discuss their finances. Many couples find it difficult to talk about money, which often leads to problems down the road. Although often taboo, the following topics, along with specifics about salary, should be routinely discussed:
- Assets: Savings, property, investments.
- Liabilities: Debt, mortgage, car loan, line of credit.
- Current financial obligations: Alimony, child support, other (e.g., RESP).
- Financial goals: Travel, retirement plans, purchase of property.
After the wedding:
Propose to your clients that they ensure their family’s financial security and protect their assets:
- Life insurance: Whether term or permanent, this protection will allow your clients to meet their short-, medium- or long-term needs.
- Use the EVO illustration tool to present your clients with the best solution.
- Change of beneficiary: Remind your clients to check the designated beneficiaries for all their individual and group insurance and savings products and to add their spouse, if necessary.
- RRSP: If your clients are not currently homeowners and do not have an RRSP, it may be worthwhile to start contributing to one to help finance the purchase of their first home (HBP). Be sure to let them know!
- Will: If your clients have accumulated assets or if they have a child, advise them to make a will. This will ensure that, should something bad happen, your client will be able to meet their financial commitments worry-free and get through this difficult time.
*2021 Fidelity Investments Couples & Money Study