If you’re planning to get remarried, you have plenty of company: More than 40% of all U.S. weddings are second marriages for at least one of the participants, according to an estimate by the National Stepfamily Resource Center.
Naturally, a second marriage will bring many changes to your life, not the least of which may be changes in your financial strategy and goals.
In fact, your remarriage should cause you to take a close look at these areas:
• Past financial obligations - Before even discussing your investments, you and your new spouse should decide how to handle past financial obligations such as child support, alimony and debts. Consider temporarily managing three accounts – his, hers and ours – to keep track of these various payments.
• Retirement accounts - You and your new spouse may want to examine your respective retirement accounts, such as your 401(k)s and individual retirement accounts (IRAs), to determine if there are areas of duplication you may wish to avoid. If you both have the same types of investments, you may be more susceptible to downturns which primarily affect one industry or economic sector. By diversifying your holdings, you can reduce the effects of volatility on your portfolios. Keep in mind, though, diversification cannot guarantee a profit or protect against loss.
• Insurance - Evaluate your medical insurance plans to decide which policy is more economical and comprehensive for you, your spouse and any dependents. You may also want to review disability insurance to ensure appropriate coverage is in place. Also, review life insurance policies and update beneficiaries and coverage.
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