4 Ways to Take the Taboo Out of Talking About Money with Your Spouse

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November 26, 2018
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Money is a commonly held taboo topic, like politics and religion. We just don’t feel comfortable talking about them – especially to people we care about. That’s because these topics are tied closely to how we view ourselves. These topics also garner a lot of judgment, and the last thing we want is to be judged on something that we feel is intrinsically linked to our intelligence or sense of maturity. Yet, by practicing a few simple tips, we can start tackling the taboo topic of family finances and get on that path to financial independence.

Be Honest

It is human nature to want to hide things we may not be proud of or want to avoid. Perhaps you charged a bit too much to your credit cards or haven’t saved as much as you planned for all of your family’s goals. You may want to avoid addressing such issues, but those who are part of your financial household need to know the honest, unvarnished state of your finances. Trying to hide the facts will just compound your issues when they come to light – and they will.

Be Frequent

Don’t just talk about money when money is a problem. That’s when stress levels are high and emotions are frayed. What needs to be a level-headed discussion can quickly escalate into an emotional shouting match. Instead, conversations about finances should become routine. If you schedule a monthly financial date night with your spouse, the frequent exposure will minimize the surprise and anxiety from these talks. Ultimately, there will be fewer surprises and more planning to help when unexpected or hard decisions need to be made.

Be Open to Feedback

You and your spouse are a team. Teams succeed by working together towards the same goals. Teammates, though, don’t always see things the same way and may have different approaches to the same objective. That’s why it’s important to get your spouse’s input on how your finances are being managed. Not only does your spouse’s input ensure you’re working towards the same goals, but different perspectives can also provide multiple solutions to financial issues. Most importantly, your spouse feels heard and validated, which is a precious thing to give to the one you love.

Be Non-Judgmental

What causes many to shy away from discussing finances is the idea that they will be judged for things they did or did not do with their money. Did you mismanage your funds and refrain from saving sufficiently? Were you too risky with your investments or not risky enough to provide for the household? To avoid the judgment, most will just avoid talking about their finances all together, which doesn’t often have good outcomes. Avoidance doesn’t help financial situations – it often just prolongs the mess. To help your spouse open up, it is beneficial to allow them to speak openly and freely and to listen without judgment.

I do believe that it is imperative to take the taboo out of talking about money with your spouse. Both of you should foster frequent and honest financial discussions, free of strife and judgment. Doing these things will allow you to solidify yourselves as a strong financial team and set you on your path for collective financial independence.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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By
Jeff Motske, CFP®
November 9, 2018

I personally believe that one of the advantages of doing well financially is to be able to “give back” to causes that are near and dear to your heart. However, when we feel passionate about a cause, the emotional pull can tempt us to financially overextend ourselves. With some forethought, though, you can utilize creative measures that allow you to be generous without breaking the bank.

Your Time

Before you pull out your checkbook, perhaps consider getting your hands a little dirty. Whether it’s cleaning trash from the beach, working at a food pantry or assembling packages for our troops stationed far and wide, nonprofit organizations are powered by people. Even the simplest volunteer work can make a significant impact on an organization in need.

Your Talent

Some of us have specialized talents and skills that can be of value to a charitable organization. If you have an accounting background, perhaps you can offer your services to a nonprofit close to your heart. If you run a landscaping company, you can choose to donate your services to your alma mater. Such specialized services can be of great value to an organization and not make much of a dent in your personal finances.

Your Treasure

Just as there are different types of non-profit or charitable organizations, there are also different ways to financially contribute to them. Many of us are familiar with direct contributions, donations that may qualify to be deducted from your income tax. You could also contribute via donor-advised funds, which allows you to make charitable contributions to specially designated funds at a specific charity, receive a tax benefit from the contribution and recommend grants to be funded by the charitable fund account. Another option is to donate appreciated stock or appreciated real estate, which provides a significant tax deduction. Some choose to leave a charitable donation after they pass via a trust  These gifts in trust can be tricky, so it is advisable to meet with a professional to avoid any issues. Additionally, there are those who prefer to utilize charitable gift annuities, which allows an individual to receive a fixed income after donating money, securities or real estate.

There are as many worthy charitable organizations as there are stars in the sky. When your funds won’t allow you to do more, there are always other ways to “give”. Doing so thoughtfully and creatively can ensure that everyone benefits.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

  1. https://www.nptrust.org/what-is-a-donor-advised-fund
By
Diane Zing, CSA
May 18, 2018

Some people believe that one of the most frustrating words in the financial world is the word “taxes”. But it doesn’t have to be…and it actually shouldn’t be. Understanding the world of taxation takes enormous amounts of education, understanding and application. The average person doesn’t necessarily want to become an expert on taxes, but they certainly don’t want to pay more than they have to, either. Hence the reason many people and businesses reach out for help. Finding a tax professional can be complicated; hoping to find the right kind of tax professional for the services needed tends to be the number one challenge.

When starting a search to find the right tax professional, there are basically two major things to consider. Firstly, it’s important to understand the differences between the types of tax professionals. Secondly, it’s important to ask the right kind of questions to help discern if a working relationship with a particular tax professional is a good fit.

Start with having a basic understanding of a few different types of tax professionals.

TYPES OF TAX PROFESSIONALS:

Tax Preparer – A tax preparer can help individuals, families, and businesses prepare tax returns. They cannot represent clients during an audit. Their role is limited to tax preparation. A large percentage of the general population might find that a Tax Preparer is a match for their filing needs.

EA – An Enrolled Agent (EA) has passed an IRS examination that puts them in a position to not only help clients prepare tax returns, but they can also represent their clients in the event of an audit. Generally speaking, EA’s may tend to have more thorough knowledge and understanding in regards to tax preparation than that of a Tax Preparer. Individuals, families, and business owners might find that an EA is helpful due to the complexities that their tax preparation needs may entail.

Tax Attorneys – Tax Attorneys can not only prepare tax filings, but they can also represent their clients during an audit, as well as represent clients in court proceedings. Tax attorneys play a significant role in helping their clients through complications with tax liabilities, responsibilities, and other issues that may arise.

CPA – Certified Public Accountants are tax professionals who have a degree in accounting or a related field. They have passed the state CPA exam, and are able to perform a myriad of services for their clients. They can prepare tax filings, represent clients during audits, prepare and certify audit statements. They cannot, however, represent their clients in court.

There are additional types of tax professionals, but the above mentioned tend to be the most widely sought after by individuals, families, business owners, non-profit entities, and others.

Secondly, it’s important to ask questions that are relevant for finding a professional that might be best suited for the specific needs at hand. Here are a few questions to consider when interviewing a tax professional:

QUESTIONS TO ASK:

  1. What is your designation, or professional title?
  2. What industries or types of clients do you have?
  3. How many years of experience do you have?
  4. How many people do you have in your organization, and what are their roles?
  5. Do you help clients with tax planning strategies, as well as tax preparation?
  6. Do you work in collaboration with financial planners and other professionals?
  7. What kind of ongoing service model do you have?
  8. What is your fee structure?

When discerning which tax professional to work with, having a basic knowledge of the types of tax professionals might go a long way with helping to build a productive relationship, and subsequently, possibly more favorable tax solutions. Taxes are a major part of life, and having a strategy around how finances are built, managed, and maintained could possibly help significantly. It’s important to be responsible with taxes, and having a professional that can help discern taxation with efficiencies could have significant importance to overall financial planning.

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