CALIFORNIA, USA — Wedding season is here and it can be an expensive time for the happy couple and their guests.
But besides love and a lifetime of happiness, the institution of marriage promises certain financial benefits.
Let’s take a look into the money side of marriage and why tying together your finances makes sense when tying the knot.
If you have two incomes coming in, meaning both people in the couple have jobs, you can reap the benefits of what finance folks call “the economy of scale.”
This means two incomes covering only one set of expenses such as one internet bill, utilities bill or one rent or mortgage.
Also, you might be able to negotiate better rates for health, car or home insurance.
“Often times insurance companies will look at married individuals as being lower risk. Generally, they look at married people as being more stable economically. So oftentimes when you’re married, over time, you can secure more attractive premium payments," said Joseph Eschleman, the president of Towerpoint Wealth.
Don’t forget the multiple tax benefits of filing jointly as a couple.
Eschleman says when it comes to retirement plans couples can fund an IRA and if a spouse isn’t working, the other working partner can still fund an IRA even for a non-working spouse.
Remember to prioritize saving, investing and paying yourself first. Keep in mind, adding kids to the mix is a whole other story.
But for now, if you are a couple with double sets of income coming in., Eschleman says you’ll be able to grow your nest egg faster and potentially negotiate better deals on insurance and tax rates.
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