Small Tweaks, Big Wins: 5 Financial Questions Every Couple Should Ask

Little tweaks on a baseball swing can mean the difference between a single and a home run. The same is true for your finances. Consistent steps, not drastic overhauls, lead to significant financial wins over time. This isn’t about hitting a grand slam with one big move — it’s about consistently playing the game smart.

Let’s look at ways you and your partner can make small adjustments by asking the right questions. These questions will help you make informed decisions about your financial future, especially regarding taxes and retirement.

1. What are our long-term financial goals, and how can we prioritize them considering our current income, assets, and tax situation?

First, consider your long-term goals. Before you can make any adjustments, you need to know where you’re headed. Are you aiming for early retirement? Planning to support your children’s education? Dreaming of a second home? Once you’ve defined your goals, consider your current financial picture. And don’t forget taxes! A good financial plan takes into account your tax bracket and looks for opportunities to minimize your tax burden from the start. At Black Oak, we help our clients prioritize their goals and develop a roadmap that considers all the variables, including the ever-changing tax landscape.

2. How can we minimize our tax burden now and in retirement, and what tax-efficient strategies should we consider given our income level and investment portfolio?

Next, explore tax-efficient strategies. Taxes are a significant concern for high-income earners and don’t disappear in retirement. This is where you’ll want to ask about tax-efficient strategies. Are you maximizing your deductions? Are your investments structured in a tax-smart way? Have you considered tax-free municipal bonds? We often see clients who haven’t fully explored these options. Don’t leave money on the table! 

3. What are our options for generating reliable income in retirement, and how can we ensure it will last throughout our retirement years, even considering potential healthcare costs and inflation?

Then, think about your retirement income. Retirement income planning is more than just withdrawing money from your 401k. It’s about creating a sustainable income stream that will support your desired lifestyle for decades. This question prompts you to consider all potential income sources, including Social Security, pensions, and investments. And let’s be realistic: healthcare costs and inflation are significant factors.  

4. How should we coordinate our estate planning with our overall financial plan to minimize estate taxes and ensure our assets are distributed according to our wishes?

Also, address your estate planning preparedness. Estate planning ensures your assets are protected and distributed according to your wishes. This question encourages you to consider how your estate plan fits into your financial plan. Are you minimizing potential estate taxes? Do you have a will or trust in place? At Black Oak, we can help you coordinate your estate planning with your financial goals, ensuring a smooth transition for your loved ones.

5. How often should we review our financial plan, and what triggers might necessitate adjustments, such as changes in our income, family situation, or tax laws?

Finally, schedule regular reviews. Financial planning is not a “set it and forget it” process. Incomes change, families grow, and tax laws evolve. This question emphasizes the importance of regular reviews and adjustments. We believe in building long-term relationships with our clients and can help you navigate life’s changes.

These five questions are a great starting point for a productive financial conversation with your partner. If you’re aiming for the fences, contact us today to schedule a free consultation to see how we can help you with goal planning and your financial future.