Category Archives: Wedding and Marriage Finances

Getting Married or Cohabitating Later in Life

Posted on by
Reply

Sometimes life gets in the way of love, keeping people from “walking down the aisle” until later in life. If you’re middle-aged or older and are planning to get married or cohabitate with your partner, there are some potentially awkward issues you should probably talk about to make sure you’re on the same page.

Later-in-life marriages often come with strong tethers to people, places, accounts, and things that can complicate decisions and actions—whether it’s your ex-spouse, kids, grandkids, aging parents, debt, personal goals, or something else. It’s a good idea to be sure your trusted partner knows where you stand on these—and that your partner is willing to share similar information with you. Find a comfortable place to sit, chat, and share information about your assets, your goals and expectations. Also, talk about income, bills, and who will pay what—and when—while you’re living together.

Bowling Green State University’s National Center for Family & Marriage Research reports that 28% of 45-to 64-year-olds, and 31% of those 65 plus—are remarried.1 Whatever the reason, there are both advantages and disadvantages to getting married later in life—or to cohabitating, which increased 75% for those 50 and older between 2007 and 2017, according to Pew Research.2

The potential benefits of marrying later in life include:3

  • Problem solving: Your experience and maturity give you and your partner better problem-solving skills and a stronger understanding of the importance of working together to accomplish goals, and overcome difficulties.
  • Combined incomes: Combining incomes and assets—and potentially selling or renting your home or your partner’s home—can create a healthier financial situation.
  • Tax benefits: Getting married gives you and your partner substantial financial and tax benefits. Also, married spouses can receive an unlimited amount of assets from their spouse without having to pay estate taxes.
  • Longer lives: Single men and women don’t stay as healthy or live as long as their married counterparts, according to a study published in the American Journal of Epidemiology.4

The potential problems that can be created by marrying later in life include:5

  • Lack of communication and financial agreements: Some older adults are reluctant to share information about their assets out of concern that the information may influence their partner’s decisions—including about their own healthcare if they become severely ill or incapacitated. For this and other reasons—including the potential for a “gray divorce”—a prenuptial agreement and a well-thought-out estate plan can give you confidence.
  • Higher medical costs: Medical expenses rise as we age, and you will be responsible for your spouse’s debts. Eventually you and/or your spouse may need to go into an assisted living/nursing home.
  • Responsibilities for children from previous relationship: If one spouse has children from a past relationship, the other spouse might have to share the financial responsibility, as a couple.

Other Considerations for Older Couples

A growing number of older couples are choosing to cohabitate instead of get married. Between 2000 and 2020, cohabitation among couples older than 50 quadrupled.6 Reasons included their desire to pass their assets to their kids, and to be able to retain Social Security benefits or alimony from their former spouse.6

Because of potential financial complications for older couples, it’s a good idea to talk to a trusted advisor, accountant, and/or estate lawyer to help you and your partner navigate and avoid potential stumbling blocks that could send you down the road to “gray divorce.” According to the American Bar Association, couples 50 years old and older currently make up a 25% of all divorces, and those 65 and older make up 10%.7

Questions about this topic? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534.  You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

Prior to investing in a 529 Plan, investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

1. AARP, June 2, 2023: Financial Checklist for Remarrying After 50

2. Pew Research Center, April 6, 2017: Number of U.S. adults cohabiting with a partner continues to rise, especially among those 50 and older

3. and 5. Senior Care Lifestyles: The Pros and Cons of Marrying Later in Life

4. NBC News, August 18, 2011: Single people may die younger, new study finds

6. Time magazine, September 19, 2021: Why Older Couples Don’t Need Marriage to Have Great Relationships

7. American Bar Association, March 9, 2022: 70s are the new 50s: How Grey Divorce Differs from a Typical Divorce

This material was prepared by LPL Financial, LLC

Tracking #486571-1

How to Negotiate with Wedding Vendors

Posted on by
Reply

The days leading up to the happiest day of your life can quickly become stressful as the costs of your wedding vendors start to add up. Let’s face it – weddings are expensive. If you and your partner are fronting the bill, it might be among the costliest purchases you will ever have to make as a couple. It’s common to negotiate on the price of certain big ticket item purchases, such as your car or a home – why not negotiate with your wedding vendors, too? As with many things in life, there is a right way and a wrong way to go about it. While you want to have the wedding of your dreams, wedding vendors also rely on their business for their livelihood. Here are some ways to thoughtfully and respectfully negotiate with wedding vendors for your special day.

Do Your Research

Before you contact any potential wedding vendors, and certainly before you negotiate with them – do your research. Once you have identified potential vendors, read their reviews. Reviews will offer a glimpse into the vendor’s offerings, the quality of their services, and the prices that others have paid. Finding out the average price you can expect to pay – will set your expectations as to what an appropriate price range is, ensure that you approach any negotiations thoughtfully, and know when to identify a good deal.

The research doesn’t stop when you begin meeting with wedding vendors. Collect quotes from several that you are considering working with. Whether the vendor is offering a package or individual services, compare prices to identify which has the best-priced option. This can be beneficial if you are considering a counteroffer, as you can explain what you were expecting for the service they are offering.

Honesty is the Best Policy

When you begin meeting with potential wedding vendors, be truthful about your budget. Also ask the vendor to be upfront with you about what is included in their service, as it would not be recommended to negotiate without having a clear understanding about what you are being offered. Being honest with a vendor will ensure that you are not only being respectful of their time, but will also allow you to make an appropriate decision about hiring them and determining if negotiating on the price is appropriate. If you find that a vendor isn’t being clear about their pricing, take control of the situation and ask specific questions. For example – asking a florist, “Can you provide a flower package that fits the parameters we’ve discussed for $5,000?” will force a yes or no answer.

In discussing your budget and expectations, it is important to be considerate of the vendor and their business. This is where good research comes in – don’t meet with wedding vendors that clearly won’t be able to make your dreams a reality within your desired price range. If you were to suggest a budget that is much lower than what their services are typically priced at, it might suggest that you haven’t considered the time, effort, and expertise which go into the vendor’s offering. The more honest you are about your budget and expectations, the more likely it is that you can find one who can provide the service you are looking for.

Don’t Be Afraid to Compromise

Being willing to compromise can help you save when negotiating with wedding vendors. This can be done in two ways – by identifying things you do not need or by substituting for more affordable options. A good way to identify parts of the vendor’s offering you do not need can be creating a wants vs. needs list. Anything you identify as a need, you probably won’t want to compromise on for your special day. However, those wants can help you identify areas of potential savings and where you can cut back. For example, if you don’t have a preference as to having sit-down service or a buffet as catering options – go with the less expensive option. Or if you need a wedding photographer, but don’t want the pictures to be in any specific format – getting digital copies as opposed to printed copies could save you some money.

If the wedding vendor is open to substitutions, consider replacing some of the pricier options for more cost-effective ones. For example, if your florist came up with the idea of putting roses in your centerpieces, but you were looking for a more cost-effective flower – consider asking your florist to make that substitution.

Negotiating can be uncomfortable at first, but if you approach the conversations with respect, consideration, and sincerity – you might be surprised at the different ways wedding vendors may be willing to work with you. If you have been considering options to help with your wedding budget, consider our Financial Helper Loan. With low rates, fixed payments, and personalized service – you can say “I do” with less worry. For more information, contact First Financial’s Loan Department at 732.312.1500 Option 4 or visit a local branch.

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. 

Managing Money as a Couple

Posted on by
Reply

It’s February, and Valentine’s Day is right around the corner. While this might be the month to celebrate love, it could also be a good time to go over your finances with your Valentine. When you marry or share a household with someone, your life changes—and your approach to managing your money may change as well. The good news is it’s usually not so difficult.

At some point, you will have to ask yourselves some money questions—questions that pertain not only to your shared finances but also to your individual finances. Waiting too long to ask (or answer) those questions might have some consequences. It’s also good habit (even if you’ve been together for a long time) to review these questions annually as well.

How do you propose setting priorities? One of your first priorities should be simply setting aside money that may help you build an emergency fund. But there are other questions to ask. Should you open joint accounts? How should you title assets that are owned by both of you?

How much will you spend and save? Budgeting can help you arrive at your answer. A simple budget, an elaborate budget, or any attempt at a budget can prove more informative than you realize. A thorough, line-item budget may seem a little over the top, but what you learn from it may be truly eye-opening.

How often will you check up on your financial progress? When finances affect two people rather than one, statements can become more important. Checking in on these details once a month (or at least once a quarter) may keep you both informed, so that neither one of you have misconceptions about household finances or assets. Arguments can be avoided when money misunderstandings are resolved through check-ups.

What degree of independence do you want to maintain? Do you want to keep some money separate? Some spouses need individual financial “space” of their own. There is nothing wrong with this approach.

Can you be businesslike about your finances? Spouses who are inattentive or nonchalant about financial matters may encounter more financial trouble than they anticipate. Watch where your money goes, and think about ways to pay yourself first. Set shared short-term, medium-term, and long-term objectives.

Communication is key to all this. Watching your progress together may well have benefits beyond the financial, so a regular conversation should be the goal.

If you still have questions, or you’d like more information on how to best manage your finances as a couple – we’re here to help. You can call or email the financial professionals in the First Financial Investment & Retirement Center at 732-312-1534, mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

How to Plan a Budget-Friendly Honeymoon

Posted on by
Reply

Are you dreaming of a romantic getaway but worried about the cost? Planning a honeymoon on a budget doesn’t mean sacrificing the magic. With some savvy strategies, you can have the trip of a lifetime without breaking the bank. Let’s explore 12 tips to help make your dream honeymoon a reality without emptying your pockets.

1. Set a Realistic Budget: Outline your essentials and prioritize experiences that matter most to you and your spouse. With a clear budget in mind, you can make informed decisions and allocate funds accordingly to ensure a memorable honeymoon without financial stress.

If the money isn’t readily available, financing can be an option for some couples. Some things in life are non-negotiables – especially things you’ve been dreaming of for as long as you can remember. At First Financial, we know the money just isn’t always there. With our Financial Helper Loan, you can borrow up to $25,000 to help with the costs of your dream honeymoon at a competitive rate.*

2. Embrace Low Season: Off-peak travel not only offers savings, but also provides a chance to immerse yourself in the destination without the crowds. Take advantage of quieter beaches, shorter lines at attractions, more intimate atmospheres, and lower rates during your honeymoon.

3. Quality Over Quantity: A shorter honeymoon doesn’t mean compromising on luxury or adventure. By focusing on quality experiences over an extended timeframe, you can savor each moment of luxury and exhilaration without losing the charm, all while staying within your budget.

4. Discover Affordable Destinations: Explore hidden gems and emerging destinations where your budget goes a little further. These lesser-known locales often offer unique cultural experiences, stunning landscapes, and authentic cuisine without the premium price tag of more popular destinations.

5. Plan and Book Early: Early booking not only secures the best deals, but also allows for greater flexibility and peace of mind. By planning ahead – you can take advantage of promotional offers, secure preferred accommodations, and tailor your itinerary to fit your budget and preferences.

6. Mix-Up Accommodations: Strike a balance between budget-friendly stays and occasional splurges to create a diverse and memorable honeymoon experience. Consider opting for luxury accommodations for shorter stays or unique locations, while saving on one-night stays to stretch your budget further.

7. Consider Group Tours: Small group tours offer the perfect blend of convenience, affordability, and adventure. With expert guides leading the way, you can explore off-the-beaten-path destinations, participate in unique activities, and forge lasting connections with fellow travelers — all while staying within your budget.

8. Research Dining Options: Planning your dining experiences in advance ensures you enjoy delicious meals without breaking the bank. Look for local eateries favored by residents, explore street food for authentic flavors, and consider cooking your own meals using fresh ingredients from markets or grocery stores to save money while still indulging in culinary delights.

9. Consult a Travel Agent: A knowledgeable travel agent can help you navigate the complexities of honeymoon planning while maximizing your budget. From securing exclusive deals and upgrades to providing insider tips and personalized recommendations, their expertise can turn your honeymoon dreams into a seamless and budget-friendly reality.

10. Create a Honeymoon Registry: Customize your honeymoon registry to include specific experiences or aspects of your trip that guests can contribute to. Whether it’s a romantic dinner, a couples’ massage, or a once-in-a-lifetime excursion – allowing loved ones to support your honeymoon fund ensures meaningful gifts that enhance your overall experience.

11. Opt for a Delayed Honeymoon: Postponing your honeymoon allows for additional time to recover from wedding festivities and save money for your dream trip. By choosing a later departure date, you can take advantage of off-peak travel discounts, seasonal promotions, and special offers to stretch your budget further.

12. Utilize Points and Loyalty Programs: By strategically leveraging loyalty programs and cash back rewards – you can enjoy upgrades, discounts, and exclusive perks that enhance your honeymoon experience without increasing your overall budget. The First Financial Cash Plus Credit Card offers customized rewards that can be used on travel experiences and more – with 1% unlimited cash back everywhere.** You can use our credit card for some wedding purchases you were planning on anyway, make your payments on time, and enjoy the fruitful rewards!

As you embark on the journey of planning your dream honeymoon, remember that financial constraints don’t have to dim the sparkle of your romantic getaway. By following these savvy tips, you can craft a budget-friendly honeymoon filled with unforgettable experiences and cherished memories. For more personalized assistance and tailored solutions – call 732.312.1500, visit a branch, or explore our services online.

*APR = Annual Percentage Rate. Rates are subject to change. Maximum loan is $25K and maximum term is 60 months. Not all applicants qualify, subject to credit approval. A First Financial membership is required to obtain a Personal Loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. See credit union for details.

**APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

Managing Finances and P2P Payments When You’re in a Wedding Party

Posted on by
Reply

Weddings are a time of great joy. But let’s face it, they can also be a bit stressful – especially if you’re in the bridal party. Being in a wedding party can cost you around $1,000 by today’s standards. Here are a few ways to avoid going into debt once you’ve agreed to be there for your BFF on their big day and the surrounding events:

  • Communicate – Before you agree to be in the wedding party, communicate with the bride or groom about expectations and expenses. If you’re currently struggling financially and don’t think you can afford what might be expected of you, be up front and honest about it.
  • Save up – If potentially being in a bridal party is in your near future, start putting aside some money into savings now – every little bit helps. Once you’re asked and accept, definitely start socking away as much as your budget will allow (even if you have to temporarily forego some of your usual treats like meals out, daily coffee, Netflix, etc. and put that money into wedding savings).
  • It’s okay to say no if you really can’t afford something. If you truly can’t afford to be in a wedding party, it’s okay to say no – just do it as gently and kindly as possible and be completely honest. You can politely decline and if you felt you needed to, still thank them for asking you and send them a small gift or item from their registry. Or if you would like to accept but can’t afford a destination bachelor or bachelorette party which you know is in the works, be up front about that from the beginning.

Once you’ve accepted the invitation to participate in a wedding party, it’s time to start thinking about how you might pay for upcoming expenses. Person-to-person (P2P) payment apps are very popular these days, and can make organizing a bachelor or bachelorette party easier – and gifting for the wedding or bridal shower a breeze. It’s also a good idea to brush up on your P2P payment app safety first, before you start planning away.

How to Plan a Bachelor or Bachelorette Party using P2P Payment Apps

Your best friend is getting married and you’ve accepted to being the best man or maid of honor. You’re honored but also a bit nervous, because you want everything to be perfect – including their bachelor or bachelorette party.

Whether the guest of honor decides on a weekend getaway, a staycation closer to home, or a low-key night in, much of the party planning will probably rest with you. Once you’ve been given a list of possible locations, dates, and the invite list, you might want to start a group text or email to the invitees to get everyone on the same page regarding costs and expectations.

Some things to consider, save up for, and communicate may include:

  • Transportation costs: Plane tickets or carpooling to the destination.
  • Accommodation costs: Hotel or house rental.
  • Costs for various activities: Brewery/wine tasting, pool cabana, concert tickets, meals, etc.

Decide up front what the guest of honor will pay for and what the group will cover. It’s important to get everyone’s input because some may have tighter budgets than others, and you don’t want to put anyone in an uncomfortable position. According to a recent survey conducted by Savings.com, 43% of people don’t feel comfortable talking about money or financial status with their friends. This could be why 52% of respondents took on credit card debt and 39% opted out of some parts of the bachelor/bachelorette party due to high costs.

Consider taking an anonymous poll to help determine how much money guests would like to spend. Once that’s decided, how to split bachelor/bachelorette party costs and share expenses should be fairly easy. And that’s where P2P payment apps come in.

As one of the more popular peer-to-peer payment options, you might be surprised at how many guests already use the P2P payment app Zelle®. And those who don’t can most likely enroll through their bank or credit union’s mobile app with just an email address or U.S. mobile phone number. Once they enroll, they can now send money directly to your bank account, even if they bank somewhere different than you.1 As the host, you can easily send payment requests2 to others in the group for their share of the costs you’ve already agreed upon. Plus, money sent is typically available in minutes.1

When using a P2P app, it’s very important to make sure you know who you are sending money to – since once it’s sent, it can be extremely difficult to get it back (if at all) should it go to the wrong place. Always verify the contact’s user name, mobile phone number or email address prior to sending any P2P payment.

More Ways to Support the Happy Couple with P2P Payment Apps

Shower Gifts: P2P payments make it very easy to split the costs of group gifts for a bridal or wedding shower. Plus, splitting costs with coworkers, friends or other family members is a great way to afford those higher priced registry gifts for the happy couple.

The Perfect Wedding Gift: Is the couple trying to buy a new house or save for a dream honeymoon? Sending the gift of money is a great way to help support their goals, whatever they may be. And when you send them a gift using a P2P payment method, it’ll arrive right away if you’re pressed for time (think as soon as they say their “I do’s” on wedding day – simply open your P2P app, click on their contact and hit send!).

Learn more about how P2P payments like Zelle® work in our short video tutorial.

To learn more about P2P payment scams and ways to protect yourself, visit zellepay.com/pay-it-safe.

Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

Setting Financial Goals as a Couple

Posted on by
Reply

Valentine’s Day is next week, and what better time of year than to sit down with your partner and talk about your financial goals as a couple and make plans for your monetary future?

Talk

The first step in achieving your financial goals together as a couple, is to talk to each other. Communication is one of the most significant components of any relationship, and discussing your finances together is super important. As you’re both talking, you’ll each want to mention the goals you both have for the two of you, your individual financial goals, and be sure to jot everything down or save them on a note in your phone or on the computer.

As you’re discussing, be sure you’re each respectful of what the other is saying. If you don’t understand something, ask questions – but you never want to make your partner feel bad about one of their goals or that it’ll never happen. Your financial situation as a couple is something you’ll both need to communicate about, see what’s realistic and what isn’t, and find ways to achieve your goals together.

Prioritize

Once your financial goals have been agreed upon and written down, it’s time to prioritize the order of how and when to achieve them. An important component of prioritizing your goals together is to decide which ones are must-haves, and which ones are nice-to-haves. For example, if your family is growing and you no longer have the space to live in a condo – buying a single family home would be a must-have goal. An annual cruise vacation is a nice-to-have. You’ll both also want to do the same with your individual goals.

Another part of prioritizing is how long it might take to reach your goals. Short-term goals are typically ones that can be completed in under a year (for instance, buying new appliances for your kitchen). Long-term goals typically take anywhere from 3-5 years or more to accomplish (boosting your retirement savings or renovating your home). Once you’ve prioritized your list, you’ll want to choose the first goal to achieve. There isn’t a right or wrong way to do this, just as long as you both are on the same wavelength.

Plan

Now it’s time to plan out how you’ll achieve your financial goals together. The best way to do this is to be specific about what the goal is, measure the goal and track your progress, decide on a way to attain your goal, be realistic about if it’s possible to achieve this goal, and set a time for when you’d like to have the goal completed by. Once your goals are planned out, you can officially begin to put money aside and start working on achieving them as a couple.

Check in on your progress

Once your plan is set and you’ve begun working on your financial goals, it’s important to keep track of your progress and potentially reconfigure your plan if you need to. You’ll want to do this at least once a month if possible. For example, maybe you both have realized you didn’t save as much money during a certain month and didn’t meet your monthly savings goal – but when you went back and reviewed your expenses, you saw that you went out to dinner or bought takeout several times a week. For the next month, try to plan to eat at home instead of dining out. You can meal prep together and plan all your meals in advance so you don’t get tempted to order out if you both come home too tired to cook one night. It’s okay to make mistakes and readjust your budget together – the most important thing is that you are both monitoring your spending, communicating, and changing your financial habits for the better moving forward.

As always, the team at First Financial can help you better manage your money and reach your financial goals. Call us at 732.312.1500 or stop by any of our local branches.

Want to see more articles like this? Subscribe to First Financial’s monthly newsletter for financial resources and advice.

Article Source: CUInsight.com