Financing Your Special Day

If you are among the majority of couples these days, you are responsible for paying for at least part if not all of your wedding and reception costs. Since the cost of an average wedding is $17,000, it is important to establish a financial plan as soon as possible.

Your timetable and where you keep your money are important considerations. If time allows you may want to begin a systematic savings plan. Saving is much easier when it is done every pay period or every month, whatever works for both of you. You may want to consider short-term investments like certificates of deposit or money market accounts.

If your timetable does not allow for you to save enough to cover your costs, you can look into financing options. If you or your future spouse owns a home, you may want to consider using a home equity loan or line of credit to pay for your wedding. Using the equity in your home would allow you to keep your savings and other investments in place and may provide you with tax-deductible interest payments.

Organizing Joint Finances

While weddings often involve months of preparation and attention to ceremony details, many decisions you make after you tie the knot can also have a very big impact on your future together. It is important to organize joint finances from the very start. Here’s a checklist of considerations:

• Determine if you are going to have a joint or individual bank account. If you would like to establish a joint account, contact your financial institution to find out what steps you need to take such as adding your new spouse to your signature card and ordering new checks.

• Rent a safe-deposit box to keep all your important papers (marriage certificate, birth certificate etc).

• Update your W-4 form to reflect the new number of dependents.

• If there is a name or address change, notify Social Security, your financial institutions, the IRS, the motor vehicle bureau, credit card companies, and employers.

• Rethink your tax situation and make the necessary adjustments. Choosing the right tax form and filing status will help you save money.

• Review insurance coverage – life, disability, car, and home.

• Change beneficiary designations on life insurance, pension or profit-sharing plans and bank accounts. Make sure your spouse is named as your primary beneficiary. This step is easily overlooked in the paperwork deluge that often coincides with marriage.

• Coordinate medical and hospital benefits. Maximize your benefits by eliminating duplications in coverage.

• Reevaluate investments. Review your combined portfolio to make sure it’s meeting your goals and that you can get your hands on money quickly if needed. At a minimum you will want to ensure that your long-term investments do not overlap significantly and that your combined retirement funds are properly diversified.

• Review your life insurance coverage. While marriage alone is not a reason to get life insurance, there are certain circumstances under which it may be a good idea. If you are purchasing a home or if you contribute significantly more income to your relationship, life insurance will help your spouse cover expenses should something happen to you.

• No matter what your financial situation, setting up a simple will upon marriage is also generally recommended. A will can prevent legal complications should an untimely death occur and make any financial transitions more clear.