Existing families often accompany second marriages. You and your wife may have children from your previous marriages. It will add to your responsibility of supporting the stepchildren emotionally and financially. If the biological father is alive, how involved he is and whether he is providing financial support will weigh into financial aid’s determination. Concerning your children, what is your financial arrangement with your former spouse? These factors will come into play when financial planning your new road map.

Talk to a financial advisor.

You can consult a financial advisor after determining the arrangement you and your wife have. Financial implications are enormous when two families merge. You will need to decide whether to combine or separate your financials. If you are going to separate finances, what will you contribute to your stepchildren? You can estimate the amount by considering your income and the monthly expenses with your new family, and how much your wife will contribute. Having joint finances makes things a little easier, as you can decide how to spend and invest together. All numbers in life are combinations of 0-9. Similarly, situations in life are combinations of choices, intent and actions. To make the best out of your family’s financial needs to freedom, hire a financial advisor who will guide you from where you are to where you want to be.

Update beneficiaries and nominations 

As you start a new life with your new family, don’t forget to change the beneficiaries and nominees on your investments and assets. When an unfortunate incident occurs and the nomination and beneficiaries are unchanged, your wife and stepchildren will not get the benefits. Don’t forget this vital aspect of financial nominations.

Life Insurance 

Analyse your life insurance coverage. The responsibilities accompanying a new family may require you to increase the insured amount or purchase more policies. Update the beneficiary on your insurance policies according to how you would like the amount divided between your current wife and stepchildren and your ex-wife and children.

Update your Will  

If you haven’t done so already, make changes to the Will after your marriage. By doing so, you can distribute your assets according to your wishes. A dispute is more likely to arise in the absence of a Will or an un updated Will. Take this necessary step now to prevent any unpleasant situations in the future. Financial planning includes estate planning. It ensures smooth legacy transitions.

Don’t rush into decisions when you begin a new chapter of your life. Give it time. Relationships are different, and you will realise their true essence with time. You can provide financial support to your stepchildren by adopting them or doing it in good faith, and nobody will question you.

Whether your dreams are big or small, it is never too late to start planning for your finances and building your wealth. We will help build the financial plan and investment strategy you need based on your goals.