Dream. Plan. Live.
Step Family Financial Planning
Step families or blended families, can bring about different physical, emotional, and financial needs and stresses to all involved. Financial Planning is especially important to protect all parties involved, yet often times gets overlooked amidst all the extended family chaos.
Generally, we are defining a step family as a marriage between a man and a woman that were married previously and had children with their previous spouse. Now a new family is created with step-siblings…and step-parents…and step-grand parents…step uncles…step aunts…cousins, etc…and that’s all before your previous spouse gets married! Then there’s that family adding to the dynamics!
We can’t help with all the family dynamics, but we can help ease some of the financial stress with blended family financial planning! Let’s consider a simple case of a step family involving the two new parents and their respective children from a previous marriage. What are the financial planning considerations?
Step Family Financial Planning Considerations
Each step family is unique and there are many things to consider. Here are some common step family financial planning topics that I put into three buckets. Your specific situation may be more or less:
A Shared Vision
- Values on giving, spending, and debt
- Shared goals; shared expenses
- Organizing your checkbook(s)
- Developing a college funding strategy
- Goals for your long-term
- Preparing your legacy
Retirement Planning
- Blending two retirement plans into one
- Maximizing your Social Security
- Developing an income plan for your essential expenses
- What about an emergency or reserve fund?
- Options for your Long-Term Care expenses
Legacy Planning
- Protecting the legacy of the children of the first spouse that dies
- Protecting the income needs of your surviving spouse
- Beyond a will – a trust may be appropriate to protect all your loved one’s interests
Help is Available!
This book will give you an excellent feel for financial planning considerations both before and after you decide to blend a family together. I’ve used this book for my own financial planning considerations and highly recommend it to others. It will give you some foundational ideas!
Click on image to review or get the book on Amazon!
“Blended Family” workbook for you and your spouse or soon-to-be spouse to work on together!
- Brainstorm your family and money values
- Formulate your “Together Plan”
- Document your income, savings, and deductions
- Understand your current debt situation
- Build your personalized spending plan
- Your financial status on 1 summary page!
Click on image to download the complimentary PDF!
Whether you are just starting out, reading Ron’s book, filling out the worksheets, or in need of personal financial coaching, we are here to help!
We can also do a workshop in your area for a small group of like-minded blended families!
Contact Us to schedule a workshop in your area or for a personal consultation. Fiduciary, fee-only advice. No products or commissions!
Step Family Financial Planning
Financial Planning is difficult even under the best of circumstances. Retirement projections, Monte Carlo simulation, bucket strategy, risk tolerance, Long-Term Care, are just a few of the industry terms that apply to a professional Financial Plan or Retirement Plan. As much as you may want to do-it-yourself, it really isn’t practical without the right tools and professional advice.
When you add on top of that the complexities of a step family situation, it is best not to rely on only yourself. Planning is critical to avoid surprises and catastrophes down the road.
Step family financial planning is one of our core expertise, both from a personal standpoint and also professionally. We will apply all of our standard financial planning tools and resources plus the added value of having been there ourselves.
Especially with retirement planning and legacy planning, it is more important than ever to protect your loved ones with a solid Plan. See more Retirement Planning information.
Whether you are a young step family just starting out or mid-career with significant assets, we can help you with a personalized Plan to help you reach your goals. Contact Us for a no-cost and no-obligation consultation to determine if what we offer is a good fit for you!
