A Special Commitment

Nobody has to tell you that marriage is a big step in your life. When you begin your lives together, not only is there an emotional commitment, but a financial one as well. Although love may conquer all, money can often stand in the way. It's best if you can set common goals and boundaries about money from the beginning so that it doesn't become a troublesome issue later in life.

Here are some of the considerations that will come into play as you put together your plans for financial wedlock.

Building wealth
All of us have dreams we share that will require sufficient assets to make them happen. It's important for both of you to agree to make a commitment to those dreams, and make common sacrifices in order to see them become a reality.

An important step is to begin saving money at every opportunity. Set up a systematic savings plan — for instance, having a set amount of money moved directly from your checking account into a mutual fund, variable annuity or money market account, so that you begin to build your pot of gold. The longer you put it off, the longer it will take for your goals to become a reality. Set a goal and a strategy to get there.

Protecting each other
Whatever financial plans you have, those plans are most likely dependent on both of you being there to make them happen. However, if either of you should die prematurely, those dreams may be dashed. An untimely death could mean the end of college plans for a child, of plans to start a business or the ability to purchase a dream home. But it doesn't have to be that way with proper life insurance coverage.

Now, more than ever, you need to take a careful look at what it would take to support your family and its long-term goals if you are no longer in the picture. Insurance protection is an affordable way to assure the future security of your family.

Investing for the long run
The future is closer than it seems. Now that you have found each other, it is time to think more seriously about different stages in your life. Do you want children and how many? Do you want them to go to college? What about your plans later in life? Do you want to retire early, and in another location?

You need to consider putting money to work in investments that can offer you the long-term growth potential you need. For instance, equity investments (such as mutual funds, variable annuities) can grow significantly over time, helping you overcome the effects of the ongoing increase in the cost of living.

The growth of value in stocks can far outpace inflation
Growth of $10,000 invested 1975 through 2000
Stocks	$467,645
Bonds	$126,390
Cash	$65,196
Inflation	$33,530
Stocks based on annual return of the Standard & Poor's 500 stock index, an unmanaged index of stocks. Bonds represented by Lehman Corporate Bond Index. Cash represented by 3-month CD yields as reported by the U.S. Federal Reserve. Inflation based on the Consumer Price Index, issued by the Bureau of Labor Statistics. No fees, expenses or taxes are assumed. These indices do not represent specific investments.

Managing your finances
Now you are in a position where it's important to think more carefully about spending decisions and their impact. What can you do to reduce your tax burden? For instance, can you:

• Purchase a home and deduct mortgage interest?
• Contribute as much as possible to pre-tax accounts for retirement and health care expenses?
• Find tax-advantaged ways to save for college education needs?

Content is for informational purposes only and may not accurately reflect your specific situation. Information is not intended to provide financial, legal, tax, or accounting advice. You should consult a qualified advisor for advice specific to your own circumstances.