Of course, relationships don’t always work out as planned, and Ms. Information is provided only as an example and is not a recommendation to pursue a particular strategy.And, like a good marriage, a relationship with a financial planner should be built on trust and a shared vision. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. This does not constitute tax or legal advice. The value of investments, and any income from them, can fall and you may get back less than you invested. For smart advice that’s tailored to you, why not speak to one of our financial advisers today? A financial adviser can help you build a financial plan that works for you, so you can feel confident you’re on the right track. Tackling your finances as a couple can help you avoid quibbles about money and reach common goals, but getting started isn’t always easy. Having a will is especially important if you aren’t married or in a civil partnership – even if you’ve been living together for years, you’ll have no entitlement to your partner’s estate if they die without a will. Writing a will ensures your money and other assets go to the right people and causes, and that your wishes are carried out. This is also a good time to think about drawing up a will. A financial adviser can help you decide on the right policies and level of cover for your circumstances. As a couple, your finances may be closely intertwined, which means if one of you suffered a serious illness or passed away, the other could really struggle financially. Talking about death and illness probably won’t make your list of best-ever date nights, but it’s really important to consider how your finances would hold up if the worst were to happen. Tax can be complicated, so make sure you seek professional advice. Again, couples who are married or in a civil partnership could consider transferring savings between one another to maximise each partner’s personal savings allowance. This is £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers, and nil for additional-rate taxpayers. There’s also the personal savings allowance, which is the amount of interest you can earn without paying tax. Bear in mind that the CGT exemption is being slashed in April 2024 to just £3,000 – you can find out what this might mean for you here. Couples who are married or in a civil partnership can transfer investments between one another tax free, which effectively doubles the CGT exemption to £12,000. If you’ve used up your ISA allowances, the CGT exemption lets you each realise tax-free investment gains of up to £6,000 in the 2023/24 tax year. If you both open an ISA, that’s a combined £40,000 that you could shield from income tax and capital gains tax (CGT) each year. ISAs, for example, let you each invest up to a maximum of £20,000 a year (2023/24) to benefit from tax-efficient income and growth. Tax isn’t the most romantic subject, but there are several tax planning opportunities that could help more of your money go towards your future. This will give your money the opportunity to grow over the long term, helping you reach your goals more quickly. That way, you won’t run the risk of your savings plummeting in value just before you need to access them.įor goals that are ten or more years away, you might want to consider investing at least some of your money in the stock market. If, for example, you want to move to a bigger property in three years’ time, then it probably makes sense to put this pot of money in a low-risk cash savings account. Having goals is important because it helps you decide how much money you need to save, and where to invest it. Agreeing one or two mutual goals will give you something concrete to work towards as a couple. It’s great to have individual goals in life, but you might find it easier to stay on track if you feel like you’re in it together. It can help you to set expectations, work through any issues, create a budgeting plan that suits both partners, and build a more solid financial plan. Talking about your finances may feel awkward, but it’s a really important way of maintaining a healthy relationship. Your habits and attitudes towards money could differ substantially, potentially leading to arguments further down the road. But if you haven’t had an open and honest conversation about your savings, spending, income and debt, you could be in for a nasty surprise. It’s easy to assume you and your partner are on the same page when it comes to your finances. Whether you’ve been together for years or are embarking on a new relationship, here are four financial planning tips for couples.ĭownload: A guide to tax-efficient investingįind out how to invest more tax efficiently and reach your goals in our comprehensive guide Planning your finances with your partner could help you build a more secure financial future.
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