Doctor Dinero

OYE MAGAZINE
DOCTOR DINERO: DON'T FIGHT WITH YOUR HONEY OVER MONEY

Not a year goes by that I don’t have several weddings to attend. Over the years I’ve seen a lot of couples walk down the aisle. And one of the things I’ve noticed about couples is that when they plan their future they usually focus on things like what kind of house they want, what city they want to live in, and how many kids they’re going to have. Yet for some reason, couples tend to overlook one very important topic: MONEY. Unfortunately—as you may have heard—many marriages end up in divorce over financial issues. With this mind, I put together the following guide that should help you minimize any future (or current) pain relating to finances with your spouse, fiancée, or girlfriend. If nothing else, read it to prove to your gal that you don’t buy Open Your Eyes just for the pictures.

THE PRE-WEDDING PLANNER
Marriage, like all other life changing events, can be made less stressful through communication and sound, realistic planning. There are many details to consider and papers to sign. Everyone agrees that Form SS-5 (social security name change) is not very romantic, but it is a fact of life. Couples need to first understand each other’s attitudes and concerns about money and then concentrate on the strategies and tools they will use to organize their financial affairs.

Have a pre-wedding financial discussion. I always encourage couples to go on a picnic or take a walk in the park (or some other peaceful setting) to have their first serious discussion about money. Share past money management experiences honestly. Discuss where you want to be financially in five, ten, and 20 years. Express any fears you might have that are associated with money and brainstorm ways those fears can be alleviated.

List your financial goals. Compare the lists that each of you make independently, and then form a single list. This is a good way to find out what’s important to each of you. Rank the items on the list according to importance so that when the lists are compared and consolidated it will be easier to concentrate on the most important issues. Also, make sure to assign a price to each goal. This will make it easier to sharpen the focus of your combined list. Then decide where the money will come from to meet these goals, how and where it will be saved, and who will earn and contribute towards what.

Make a budget that works towards meeting these goals. Many people cringe when they hear the word budget. They equate it with a military regiment that will transport them into a spartan world of penny-pinching, a world without luxury or spontaneity. You do not have to deny yourselves the things you love, just work them into the budget.

NEXT STEP
Once you’ve made a joint financial plan and are huddled together for strength, you are ready to face the world. The first thing this means is filling out a new Form W-4. The form is easy to get. You can ask your employer for a new one, copy it from IRS books at your local library, or download a copy from www.irs.ustreas.gov.

Each of you will have to fill out this form and decide beforehand who will claim what. The number of allowances does not indicate the numberof people in your family. When specifying your allowances you will want to consider retirement plan contributions, mortgage interest, and childcare expenses, all of which can reduce your federal income tax obligation. The IRS suggests that the spouse with higher income claim all of the allowances and that the lower income spouse claim zero allowances. This will help to ensure a more precise withholding calculation.

POST-MARRIAGE DISCUSSION
When the honeymoon is over, it is time to update your public records. Items that may need to be updated include:
• Passport
• Driver’s License
• Military Records
• Employer ID Card
• Insurance Policy (group and individual coverage)
• Adoption Record
• Health Insurance Card
• Marriage or Divorce Record
• Vehicle Titles
• Real Estate Titles
Most importantly, if either of you change your name you will need to inform the Social Security Administration. If they are not notified before April 15th your tax return may be delayed. Use form SS-5 to do this. It can be obtained by calling (800) 772 -1213 or you can download it from www.ssa.gov.

SEPARATE OR JOINT RETURNS?
There are many factors to consider when deciding whether you and your spouse should file joint or separate tax returns. Filing separate returns may help you avoid the "marriage penalty," but you will also not be eligible for certain benefits. Special provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 provide "marriage penalty" relief starting in the year 2005. If you are planning to file separately, you should consider the following rules that apply to you:
• Credits for adoption costs are not allowed.
• A greater portion of Social Security benefits must be reported as income.
• No credits will be allowed for the disabled or elderly.
• You will be unable to claim child or dependent care expenses.
• The earned income credit is not allowed.
• Both of you are required to use the same deduction method. If one spouse uses the itemized deduction method, the other spouse must follow suit.
• Neither spouse can qualify for a Roth IRA if separate returns are filed.
Filing separate returns can be beneficial, especially when neither spouse is eligible for any of the credits listed above and one spouse has to make deductions for casualty losses or medical expenses.

YOUR WEDDING COSTS ARE NOT DEDUCTIBLE
The cost of wedding invitations for you or your child, legal fees, and payments to your minister are not deductible on your tax returns. However, some business owners have been successful in deducting the cost of inviting business contacts to the reception.

REVIEW HEALTH INSURANCE OPTIONS
You will probably need to alter some aspect of your health insurance. This will depend on your present coverage, options, and the number of dependents. The cost of being non-insured can have a devastating impact—this is a high priority item. A personal visit to your employee benefits office or your insurance agent is the best way to get things moving.

While you may not want to talk about money during what’s supposed to be the most romantic period of your life, remember that a little bit of planning before you take the plunge may help you avoid huge problemas down the line.

OPEN YOUR EYES MAGAZINE
THE HOTTEST LATINO MAGAZINE IN AMERICA!

© 2004 Tlahtoani Media Group, LLC
The Latin Magazine featuring hot Latinas, beautiful Latinas, Latina models, Latin girls, Latin women, Latin models




	OYE MAGAZINE	DOCTOR DINERO: DON'T FIGHT WITH YOUR HONEY OVER MONEY
		Not a year goes by that I don’t have several weddings to attend. Over the years I’ve seen a lot of couples walk down the aisle. And one of the things I’ve noticed about couples is that when they plan their future they usually focus on things like what kind of house they want, what city they want to live in, and how many kids they’re going to have. Yet for some reason, couples tend to overlook one very important topic: MONEY. Unfortunately—as you may have heard—many marriages end up in divorce over financial issues. With this mind, I put together the following guide that should help you minimize any future (or current) pain relating to finances with your spouse, fiancée, or girlfriend. If nothing else, read it to prove to your gal that you don’t buy Open Your Eyes just for the pictures.

		THE PRE-WEDDING PLANNER Marriage, like all other life changing events, can be made less stressful through communication and sound, realistic planning. There are many details to consider and papers to sign. Everyone agrees that Form SS-5 (social security name change) is not very romantic, but it is a fact of life. Couples need to first understand each other’s attitudes and concerns about money and then concentrate on the strategies and tools they will use to organize their financial affairs. Have a pre-wedding financial discussion. I always encourage couples to go on a picnic or take a walk in the park (or some other peaceful setting) to have their first serious discussion about money. Share past money management experiences honestly. Discuss where you want to be financially in five, ten, and 20 years. Express any fears you might have that are associated with money and brainstorm ways those fears can be alleviated. List your financial goals. Compare the lists that each of you make independently, and then form a single list. This is a good way to find out what’s important to each of you. Rank the items on the list according to importance so that when the lists are compared and consolidated it will be easier to concentrate on the most important issues. Also, make sure to assign a price to each goal. This will make it easier to sharpen the focus of your combined list. Then decide where the money will come from to meet these goals, how and where it will be saved, and who will earn and contribute towards what. Make a budget that works towards meeting these goals. Many people cringe when they hear the word budget. They equate it with a military regiment that will transport them into a spartan world of penny-pinching, a world without luxury or spontaneity. You do not have to deny yourselves the things you love, just work them into the budget. NEXT STEP Once you’ve made a joint financial plan and are huddled together for strength, you are ready to face the world. The first thing this means is filling out a new Form W-4. The form is easy to get. You can ask your employer for a new one, copy it from IRS books at your local library, or download a copy from www.irs.ustreas.gov. Each of you will have to fill out this form and decide beforehand who will claim what. The number of allowances does not indicate the numberof people in your family. When specifying your allowances you will want to consider retirement plan contributions, mortgage interest, and childcare expenses, all of which can reduce your federal income tax obligation. The IRS suggests that the spouse with higher income claim all of the allowances and that the lower income spouse claim zero allowances. This will help to ensure a more precise withholding calculation. POST-MARRIAGE DISCUSSION When the honeymoon is over, it is time to update your public records. Items that may need to be updated include: • Passport • Driver’s License • Military Records • Employer ID Card • Insurance Policy (group and individual coverage) • Adoption Record • Health Insurance Card • Marriage or Divorce Record • Vehicle Titles • Real Estate Titles Most importantly, if either of you change your name you will need to inform the Social Security Administration. If they are not notified before April 15th your tax return may be delayed. Use form SS-5 to do this. It can be obtained by calling (800) 772 -1213 or you can download it from www.ssa.gov. SEPARATE OR JOINT RETURNS? There are many factors to consider when deciding whether you and your spouse should file joint or separate tax returns. Filing separate returns may help you avoid the "marriage penalty," but you will also not be eligible for certain benefits. Special provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 provide "marriage penalty" relief starting in the year 2005. If you are planning to file separately, you should consider the following rules that apply to you: • Credits for adoption costs are not allowed. • A greater portion of Social Security benefits must be reported as income. • No credits will be allowed for the disabled or elderly. • You will be unable to claim child or dependent care expenses. • The earned income credit is not allowed. • Both of you are required to use the same deduction method. If one spouse uses the itemized deduction method, the other spouse must follow suit. • Neither spouse can qualify for a Roth IRA if separate returns are filed. Filing separate returns can be beneficial, especially when neither spouse is eligible for any of the credits listed above and one spouse has to make deductions for casualty losses or medical expenses. YOUR WEDDING COSTS ARE NOT DEDUCTIBLE The cost of wedding invitations for you or your child, legal fees, and payments to your minister are not deductible on your tax returns. However, some business owners have been successful in deducting the cost of inviting business contacts to the reception. REVIEW HEALTH INSURANCE OPTIONS You will probably need to alter some aspect of your health insurance. This will depend on your present coverage, options, and the number of dependents. The cost of being non-insured can have a devastating impact—this is a high priority item. A personal visit to your employee benefits office or your insurance agent is the best way to get things moving. While you may not want to talk about money during what’s supposed to be the most romantic period of your life, remember that a little bit of planning before you take the plunge may help you avoid huge problemas down the line.
	OPEN YOUR EYES MAGAZINE THE HOTTEST LATINO MAGAZINE IN AMERICA! © 2004 Tlahtoani Media Group, LLC The Latin Magazine featuring hot Latinas, beautiful Latinas, Latina models, Latin girls, Latin women, Latin models