Investing for Newlyweds sounds crazy right now? Believe it or not- now is the time to start planning for you and your soon to be spouse’s financial future. Often a new Bride and Groom get a large amount of cash gifts for their wedding presents. Of course, we have already spoken of budgeting and avoiding debt so we are sure that you will use the money wisely. If you are lucky enough to have a surplus though, investing for newlyweds can be a great way to build the wealth. You need to understand the basics, make informed decisions and do the research first! There are many different types of investment products and each carries their own level of risk. There are no guarantees when it comes to investing; you will either lose or earn money based on the performance of the security in which you invest. Therefore, you must become a SMART investor!  (For those of you who have not caught previous articles, SMART means making goals that are specific, measurable, attainable, relevant and time-constrained.)

But how do you become a smart investor, especially when you are investing for newlyweds? To get started, answer the following three questions before entering any investment opportunity:

-Why are you investing? Your reason for investing will influence the type of products you want to invest in. For example, as a couple you may be planning ahead for retirement, funding your child’s college education or saving for a down payment on a house. The most suitable investment product will differ based on each scenario.

-How long do you want your money to be invested? Are your goals short-term or long-term? Some investment products like Certificates of Deposit (CD) are designed for short-term investing whereas others like annuities are designed for long-term investing. Help your money work for you by making sure the product is suitable to your timeframe.

-What is your risk tolerance level? Your risk tolerance level is essentially how comfortable you are with big gains and losses versus smaller gains and losses. You and your partner may not share the same risk tolerance level so be prepared to openly discuss and compromise investing styles.

You are investing for newlyweds now but over time your investment goals, investing timeframe and risk tolerance level may change. Re-evaluate these questions on a regular basis and adjust your investment strategy accordingly.

Finally, ALWAYS remember to investigate before you invest! Call the Indiana Securities Division at 1-800-223-8791 to make sure your agent is licensed and that the investment opportunity is registered. Also be sure to check out Indiana Investment Watch for more great information on investing for newlyweds!