Baby boomers: We need to talk about money

Love and money: For a committed couple, don't they mix?

Among thirty- and forty-somethings, yes. Baby boomers, not so much.

Fidelity Investments last week issued a stunning survey revealing that many older couples don't talk frankly with each other about money.

And nearly half of baby boomers responding had no idea how much they will earn from Social Security.

Fidelity's study of 1,051 couples expanded by including 154 Gen X couples (ages 35 to 46) and 301 Gen Y couples (25 to 34) in addition to 596 retired and pre-retired couples (ages 47 and up).

Though the majority of all couples (72 percent) said they communicate exceptionally or very well, more than four in 10 (43 percent) failed to correctly identify how much their partner makes. Of that, 10 percent got it wrong by $25,000 or more.

Other disconnects: Thirty-six percent disagreed on the amount of the household's investable assets. When asked how much they would need to save to maintain their current lifestyle in retirement, nearly half (48 percent) had "no idea" or were in disagreement about the amount.

Boomers, you control the bulk of America's financial assets. Care to share with your significant others?

Asked to estimate their Social Security payout in retirement, 60 percent of couples either didn't know or weren't sure. Even more disturbing: Almost half (49 percent) of boomers fell into this category.

(Survey respondents had a minimum household income of $75,000 or at least $100,000 in investable assets).

We aren't here to judge. My husband and I married knowing that, between us, we had a ton of school debt. But small triumphs include contributing to an IRA every year, whether we're employed or not.

Also, we know what the other person is earning, what we can budget, debt we are servicing, beneficiaries on insurance and investment policies, and where the important documents are located.

Then there's the present value of money. It's what you keep after inflation and taxes that's key.

Your $1 million today won't be worth $1 million in 10 years.

"In after-tax dollars, and factoring in 2.25 percent annual inflation, you'd need $1.25 million in 10 years to have the spending power of $1 million today," says Julia Fisher, JPMorgan wealth adviser in Center City.

Jacqueline Basso, a Downingtown certified public accountant, maintains a list of budgeting websites, apps, even downloadable spreadsheets, on her Pinterest page (www.pinterest.com/jmbasso/money-matters).

The Pennsylvania Institute of CPAs has a Tax Help Page, a helpful hub for consumers during tax season (www.picpa.org/taxhelp).

Find a budget methodology that works for you, whether it's LearnVest, Mint, Mvelopes, Gazelle, Quicken - or even a paper notebook, my personal favorite.

Know your income and expenses, and save for retirement, whether in an IRA, Roth IRA, 401(k), or college education savings fund.

"Can't get much simpler than that," Basso says.

Results of another survey suggest that many members of Generation Y are thousands of dollars in debt but still manage to save.

A survey by MoneyUnder30.com in April found nearly 50 percent of American twentysomethings are saving for retirement this year; 46 percent contributed money to a retirement account such as a 401(k) or IRA, down from 49 percent in 2014.

Student loan debt remains the biggest concern. In 2015, 19 percent reported repaying student loans as their Number One financial priority, up from 12 percent in 2014.

Forty-seven percent have student loans, with an average debt of $36,584, up from $35,921 in 2014.

Thirty percent have credit-card debt, with an average balance of $3,718, down from $3,993 in 2014.

Twenty-six percent have car loans, with an average balance of $12,273, down from $14,157 last year.

The survey results also show that today's twentysomethings have an average of $6,713 in liquid savings and $7,453 in retirement accounts.

About two-thirds of millennials are saving less than 15 percent of their income. Fourteen percent aren't saving at all.

Then again, roughly three-quarters of millennials earn $50,000 or less.

215-854-2808 @erinarvedlund