ummer is a popular time for weddings. If you’re getting married soon, you’ve got a lot on your mind, but after the honeymoon is over, it’s time to start thinking of the key activities of building a life together — one of which is creating a long-term investment strategy.

       To build such a strategy, you and your spouse will need to take several steps. Here are some of the most important ones:

       • Identify your goals. People can enter marriage at different stages of life. But whether you’re a young newlywed or a baby boomer entering a second marriage, both you and your spouse will have a set of goals you want to achieve, such as saving for a down payment on a home, saving for college for your children, building resources for a comfortable retirement, purchasing a vacation home, supporting charitable organizations and so on. It’s important that, as a couple, you identify those financial goals that are most important to you.

       • List your debts and assets. Generally speaking, the fewer “surprises” you and your spouse bring to a marriage, in terms of financial issues, the better. If you haven’t already done so, put your debts and assets “on the table” so you’re both aware of what you owe and what you own. This knowledge will be invaluable when you begin making the investment moves necessary to achieve your goals.

       • Discuss your investment styles. You and your spouse no doubt share many traits, but you will also have some differences — and one of those differences may be in your investment styles and preferences. For example, you may be an aggressive investor, while your spouse might be more conservative. What you choose to do with those differences is up to you. You could, for example, arrive at some common ground between your two styles and use that approach in your joint investment accounts. Then, for your individual accounts, such as your IRA or 401(k), you and your spouse can follow your individual investment styles.

       • Start an emergency fund. Of all the investment-related moves you can make early in your marriage, none may be quite as important as building an emergency fund containing six to 12 months’ worth of living expenses in a liquid account. Without this emergency fund, you could quickly go into debt or be forced to dip into a long-term investment if you have to meet an unexpected, and unexpectedly large, expense, such as a major car repair, a new appliance or a medical bill.

       • Get some help. If you can make the right investment-related moves right from the beginning of your marriage, you’ll almost certainly make your lives easier. But investing can be complicated, so you and your spouse could very well benefit from getting assistance from a professional financial advisor — someone who can help you create and maintain an investment portfolio that’s appropriate for your specific goals, risk tolerance and time horizon.

       By making the right investment moves, right from the start of your marriage, you and your spouse may be giving yourselves a “wedding gift” that may benefit you for years to come. So plan your moves carefully — and enjoy your lives together.  n

PROTECTING YOUR INCOME -

PART 1

By Samuel N. Wilson, Jr., C.P.A.

f you are in business, you probably insure the components of your business against loss beyond your control. You insure your premises against fire, accidental injury, and theft of property. Your equipment is probably insured. You probably have business interruption insurance to compensate you if your property is rendered unusable due to accidental damage. Whether or not you own a business, you probably insure your car so you can be sure that you’ll always have the means to get to work. You probably insure your dwelling so you can be sure that there will be a roof over your head in the event of a catastrophe. Life, homeowners, and other types of insurance policies provide important kinds of coverage, but they will not safeguard you from financial impact if a disability prevents you from working. The stark reality is that without disability income insurance, a serious injury or illness could be financially devastating to you and your family.

       You may believe you’re less likely to become disabled than to die prematurely, but statistics show exactly the opposite is true. According to tables prepared by the Society of Actuaries in 1985, at any given time in your career, the chance that a long-term disability will occur is several times the likelihood of death. For example, at age 37, the odds of a long-term disability vs. death is 3.3 to 1. At age 42, the odds are 3.5 to 1, at age 47, they are 2.8 to 1, and at age 52, they are 2.2 to 1.

       Before you read further, please get a piece of blank paper and a writing utensil. On the paper, write the names of 20 people that know each other. Some examples are members of your family or members of a club, service, or religious organization. Once you have finished, circle the ones who have had a disability lasting 90 days or longer. My experience has shown that more than 90 percent of you will have circled at least one name on your lists.

       If you earn $50,000 per year, in 20 years you will have earned 1 million dollars. Without you in it, will your car earn you that kind of money? Will any of the other things you insured enable you to continue receiving your income? Disability income insurance, also known as disability income replacement insurance, is an important vehicle that will help replace a portion of your income in the event that you become disabled due to accident or illness.

There are several types of disability insurance policies. A properly licensed agent or financial representative can explain what may be appropriate for you.  n