I have interviewed a lot of couples for this series. They have ranged in age from their 20’s through their 60’s. Very few couples that I interviewed were taken by surprise financially by their spouse. Many of them worked together to eliminate the consumer debt that was used to buy “stuff” and have made decisions jointly when taking on new debt. For the most part, we communicate well with our spouses regarding finances.
Money issues can tear a couple apart. Money can also provide choice and freedom. I am happy and relieved that so many of you no longer make money a taboo topic.
“A wise man should have money in his head, but not in his heart”
Jonathan Swift

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Boys and their toys! Not, I really mean toys. I met a 45 year old guy recently that is very into “collectible” toys. He buys a variety of action figures and all of the accoutrements that go with them. He believes in his heart that one day they will be worth a lot more that he has paid for them. There in lies the problem. They are only worth what someone is willing to pay for them no matter what you may think they are worth. If another collector offers a valid price that is not anywhere near what you thought you could get, then you may have dust collectors vs. collectibles.
Another problem that my new friend has is he did not pay cash for any of his collectibles. He is charging every purchase and not paying his charge bill in full when he receives it. As you can imagine, this is causing friction between him and his wife. In my opinion, this is not good consumer debt. There is not a vehicle, house, or education backing the money that is being borrowed. There is only a dream. Spending money on what you deem to be a collectible might make for a great hobby. It is one that has to be funded with cash.

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I know a woman who complained of insomnia. She was awake many days at 2 or 3 in the morning watching TV. She was spending time with what had become her “best friend”, HSN, the Home Shopping Network. She bought so much stuff that she “needed”, had it all delivered while her husband was at work, and worked it into the piles of other stuff already in their house. At the time she was responsible for paying the bills so her “friendship” was kept under wraps. This woman became ill, her husband had to take over the finances and was shocked. It has been many years since the husband has taken over and they are finally recovering. Being a stealth shopper caused many arguments and bad feelings.
One way to avoid this type of problem is to agree upon a dollar limit that either spouse can spend without discussion that will not put the family finances in peril. This is an idea I share with many of my clients that have different spending habits. If you can come to some type of agreement then there may be less sleepless nights for all.

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I have been with my Husband for 30 years. When we first got together, we were both new in business as self-employed investment professionals. We did not have a pot to pee in. We opened a joint account to put our meager earnings into as we started our life together. I did not have any debt, but married student loans. As we built our life, we took on a car loan and then a mortgage. This was debt with backing, not just consumer debt for frivolous purchases. We have made mistakes along the way, but we have done this together. I am finding that this is not always the case.
June is often considered the wedding month. This has made me wonder how many couples are entering into marriage without full disclosure of their finances. I have been interviewing people of all ages and lengths of marriage and will report my finding over the next few blogs. Money tends to be one of the biggest stressors in a marriage. Hopefully, my findings will help you to avoid that stress.

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Q: Through my divorce proceedings I have been awarded ½ of my Ex’s TSP. This amounts to about $150,000. What is the best way to invest this?

A: I hope that you have, or will receive a QDRO. This is a Qualified Domestic Relations Order that creates or recognizes the existence of an alternate payee’s right to receive, or assigns to an alternate payee the right to receive, all or a portion of the benefits payable with respect to a participant under a retirement plan. This will allow you to establish your own IRA into which to roll the proceeds from the TSP.

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There was a new IRS ruling that may impact your employees. Please follow this link to get the full story.

http://www.newsmax.com/newswidget/Obamacare-healthcare-IRS-ruling/2014/05/26/id/573326/?promo_code=142BF-1&utm_source=142BFSun_sentinel_and_Orlando_Sentinel_generi&utm_medium=nmwidget&utm_campaign=widgetphase1

•Let every nation know, whether it wishes us well or ill, that we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe to assure the survival and the success of liberty. -John F. Kennedy

•The greatest glory of a free-born people is to transmit that freedom to their children. -William Havard

•Soldier, rest! Thy warfare o’er,
Sleep the sleep that knows not breaking,
Dream of battled fields no more.
Days of danger, nights of waking. -Sir Walter Scott

A recent survey* showed that participants in 401K accounts that take advantage of professional advisory services end up doing much better than those who do not.
The average participant that uses professional help earned 3.32% more annually, net of fees, than those who did not.
I am qualified to help manage my clients’ 401K accounts while they are still working, while the participant is still working, as long as the balance is at least $100,000. You can contact me at nancy@financialgroup.com for a free second opinion on your 401K.

*Kiplinger’s 5/14/14

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