Search
Archives
Categories
Recent Posts
Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments
The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial
Read More
Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on
Read More
Maximize Your Charitable Impact with These Four Strategies
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There
Read More
6 Essential Money Tips for Unmarried Couples
When it comes to managing finances, unmarried couples face unique challenges. Unlike their married counterparts, they don’t have the legal framework to fall back on, making it even more crucial to have a solid financial plan in place. Here are six essential financial tips for unmarried couples that can help pave the way for a secure future.
For an in-depth look at financial considerations for unmarried couples, you can read the original article here.
1. Open and Honest Communication
Discussing money matters may not be the most exciting conversation, but it’s necessary. Make time to sit down and discuss your individual financial goals, income, debts, and future plans. Transparency and honesty are crucial for building a foundation that will support your joint financial endeavors.
2. Establish Boundaries and Ownership
Clearly outline who owns what, especially when it comes to property like a house or car. This also extends to debts. Establishing ownership will help avoid any potential legal disputes in the future. One effective way to do this is by drafting a cohabitation agreement, a legal document that specifies what belongs to whom.
3. Create a Joint Budget
After having an open discussion about finances, consider creating a joint budget. This budget can help manage joint expenses like rent, groceries, and other shared costs. Make sure you agree on how much each partner will contribute and how the expenses will be split.
4. Set Up an Emergency Fund
Life is unpredictable, and emergencies can be costly. By setting up a joint emergency fund, you’ll have the financial security to handle any unexpected situations. Make regular contributions and agree on when and how the fund can be used.
5. Plan for Retirement
Even if retirement seems like a distant dream, it’s never too early to start planning. Consider how your retirement goals align with your partner’s and explore different investment opportunities like a Roth IRA or a 401(k). Consult a financial advisor for tailored advice that best suits your needs.
6. Review and Update Financial Plans
Financial goals and situations change over time. Make it a habit to review your financial plans at least once a year. Reassess your budget, update your emergency fund, and re-evaluate your retirement plans as needed.
In Summary
Managing finances as an unmarried couple can be complex, but it doesn’t have to be daunting. By taking the right steps, you can build a secure financial future together. At Shah Total Planning, we specialize in providing comprehensive financial planning and legal advice tailored to your individual needs. If you have any questions or require professional guidance, we encourage you to reach out to us.
Remember, the journey to financial security starts with a single step, and we are here to guide you through each one. So, don’t hesitate. Contact Shah Total Planning today to ensure your financial planning is on the right track.