A couple married for over 40 years wonders if they should have kept their money separate, currently maintaining joint accounts except for their IRAs. The Moneyist advises that if the current arrangement works, there’s no need to change it, but open communication about financial goals is crucial. Maintaining separate IRAs is highlighted as a smart move for individual retirement planning.
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Times have changed. If you are married, do you keep your money separate from your spouse’s? I have been married over 40 years, and we are old school. We have all of our financial accounts joint except for our IRAs.
Happily Married
Dear Happily Married,
You’re not alone. Many couples of your generation took a joint approach to finances, and it worked well for them. However, it’s a question that’s increasingly being asked as financial dynamics evolve. Keeping finances completely merged can create a sense of unity and shared purpose, but it can also lead to complications if one partner has different spending habits or financial goals.
The fact that you’ve maintained separate IRAs is a smart move. It allows each of you to have some financial independence and control over your retirement savings. As for the rest of your accounts, if it’s not broken, don’t fix it. However, it’s worth having an open conversation with your spouse about your financial expectations and goals for the future.
Consider discussing things like:
- Emergency funds: Do you have a joint emergency fund, or do you each have your own?
- Large purchases: How do you handle big expenses?
- Financial goals: Are you both on the same page about retirement, travel, or other financial aspirations?
If you’re both comfortable with the current arrangement, there’s no need to change it. But if you’re starting to feel uneasy or if your financial goals are diverging, it might be time to explore more separate financial arrangements.
Do you have a question about money? Email The Moneyist at q.moneyist@marketwatch.com and please include the state where you live.
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