Contributing Author: Annabelle Harris
Finding a new life partner later in life can be immensely rewarding. Of course, there are special considerations to keep in mind when it comes to formalizing your relationship in terms of cohabiting or getting married. Finances, long-term care planning, and estate management should all be discussed in advance. Marie’s Gold Relationship & Communication Coaching can help you identify the most important things to consider when you’ve found that special someone later in life.
If you’ve been living on your own for a while, you likely have many years of belongings accumulated. If you’re looking to downsize, you have several options, including liquidating via an estate sale or auction, donating, or giving away household items and possessions you no longer want, need, or have room for. You may have adult children or grandchildren who would like family heirlooms or special mementos. If you’re unsure of what to do, you can always rent a storage locker to hold your possessions until you make your decisions. According to Houzz, communication throughout the process is key.
Sell, Rent, or Buy?
If you’re planning to live with your newfound love, you may decide to move into one of your existing homes, sell both homes and buy something new, or rent one or more properties for additional income. There are pros and cons to both approaches, and much depends on your preferences. For example, selling property frees up cash, while renting a property can generate an investment property income. You will have to manage the property yourself or hire a company to do it for you. Typical management needs include vetting renters, collecting rent, and managing repair issues.
Starting a Business
If you do opt to rent, you might decide it’s worthwhile to launch an investment property business. Form an LLC, or limited liability company, as a way to protect you from some kinds of liability. An LLC will also make it easier to file taxes and will give you flexibility. You can hire an attorney to file the papers, do it yourself, or the best option – save time and money by retaining a formation company to handle all of the details on your behalf.
According to U.S. News, if you enjoy the extra income, other viable business opportunities can allow you to capitalize on your previous experience – for example, consulting or freelancing. All states have different rules around LLC formation, so learn yours in advance.
Even if both you and your loved one are healthy today, there’s always the possibility one or both of you will need long-term care at some point in the future. Have an honest talk about your wants and needs, and discuss things like your insurance, your savings, your retirement income, disability, and long-term care insurance. This will help ensure you are on the same page about what the “next stage” of life might look like. Once married, you’ll want to notify Social Security, and potentially make changes to your will. Some older couples keep separate beneficiaries, particularly if they have an estate and they want to provide an inheritance to children or grandchildren.
When you make major life decisions later in life, there are some personal conversations you’ll need to have. This includes discussing how you will treat one another’s children, manage your investments, together and separately, and how you plan to spend your golden years. Being on the same page with your spouse – and with your respective families – will help ensure ongoing open communication, set realistic expectations, and allow everyone to feel heard. Best of all, there will be no surprises!
Finding a new love later in life can be a wonderful second act. Go in with your eyes open and with honesty at the forefront, and enjoy your time together. Remember, communication is key, regardless of your age. Marie’s Gold Relationship & Communication Coaching can help you go into your newfound relationship with clear eyes and open hearts. Visit the site today or reach out for a personal consultation.