Dave Ramsey’s 6 Investing Tips for Married Couples To Reach Their Retirement Goals

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As a married couple, it’s essential to work together to set some joint goals and invest in things that contribute to your future financial stability. But you don’t have to wait until you’ve been married for several years or decades to do this. In fact, the sooner you start talking about what you both want and investing in your future, the better off you’ll both be.

In an article on his website, readers are given the best investing tips for married couples who are preparing for retirement. Here are the big ones.

1. Get Everyone on the Same Page

One of the very first things the article on Dave Ramsey’s site recommends for married couples to do is to get on the same page. Ideally, you’ll do this in the early stages of your relationship. But if you haven’t had the opportunity to sit down and talk about your retirement goals, now’s the time.

Here are a few questions to ask yourself and your partner:

• At what age do you want to retire and how much time do you have until then?
• What types of retirement accounts are you interested in using?
• What’s your risk tolerance when it comes to investing?
• Do you want to take more of a hands-on or a hands-off approach?
• What do you want to do once you retire?

As the article points out on his website, you’re not likely to agree on every little detail with your partner. But as long as you can discuss things openly and compromise on the things that matter, you can work things out together. And once you both know what your dream retirement looks like, you’ll be able to get there much more easily.

2. Know Which Types of Accounts You Can Invest In

The article recommends setting up a fully-funded emergency savings fund with at least three to six months’ worth of expenses saved up. It also suggests that you start investing around 15% of your combined pretax income each year, but only after you’re debt-free (excluding your mortgage).

Once that’s done, the next step is to figure out which types of investments are available and which ones are best for your household. In particular, you may want to consider using tax-advantaged accounts like a Roth IRA or 401(k). Along with this, research growth stock mutual funds and invest in those with a solid track record of returns.

Speak with your spouse about their investment options as well, and see where you can find common ground. While you’re at it, open joint retirement accounts as long as it makes sense — typically after maxing out your individual retirement accounts.

3. Get Life Insurance

The last thing many couples want to discuss is the subject of mortality. But it’s still an important part of life and retirement planning.

Life insurance, in particular, is a vital part of building a financially secure future. This is because it can protect your loved ones if you’re no longer around to provide for them.

Dave Ramsey’s site suggests that both you and your spouse get either a 15- or 20-year term life insurance policy. Each policy should be worth at least 10 times your annual income, if not more.

By investing in life insurance now, as well as by setting aside 15% of your gross income for retirement purposes, you’ll be much better prepared by the time you actually do retire. And if both you and your spouse live to a ripe old age, you’ll have greater peace of mind and more financial stability because of this decision.

4. Update Your Retirement Accounts

If you have a 401(k) account with an employer you no longer work for, now’s a good time to go back and update it. According to Dave Ramsey’s site, leaving old 401(k) plans around could lead to expensive fees and unneeded stress down the line. To prevent this, gather all of your older 401(k) accounts and roll them into a new retirement account.

There are several ways to roll over your 401(k). The way Ramsey’s site suggests doing it is to do a direct transfer of your older accounts into a brand new IRA. One benefit of doing this is to avoid the 10% penalty that comes with early withdrawal. Another advantage is that you’ll have more control over the IRA than you did with the 401(k).

5. Keep Your Beneficiaries Up to Date

Ramsey also suggests that married couples update all their financial and retirement accounts in terms of their beneficiaries. This is something that you shouldn’t wait on — in fact, Ramsey suggests doing it as soon as you return from your honeymoon.

Keep in mind that many retirement plans, particularly those that are employer-sponsored, will list your spouse as the primary beneficiary. Even so, it’s a good idea to check this information and make sure the beneficiary — or beneficiaries — are the ones you want to be on the account. If they’re not, you’ll need to update that information.

6. Consult With a Professional

Last but not least, Ramsey’s advice is to speak with an investment professional about your joint retirement goals. After all, it’s tough to do it alone, especially if neither you nor your spouse are current on tax and legal implications.

An investment professional can help by providing financial or investment advice so that you can better prepare for retirement. They should also be up to date on any legal matters that might affect your investments down the road.

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