Brian and Angela, both 52, have traveled through life together for 28 years, first as high school sweethearts. Now nearing the empty nest phase of their lives, the couple wrestles with a major financial challenge. They make $188,000 annually. Because of their almost $900,000 in investments, they have a total net worth of $1.57 million. Their financial plan has bought them a life where Angela feels personally miserable.
Brian and Angela are certainly living with a very nice income and wealth. They do bear the burden of $294,000 in debt from their mortgage and car loans. The burden of this debt is exacerbated for her as their fixed costs make up 72% of their monthly income. Angela hopes to retire in the next five years. At the same time, Brian fears that he will have to work until 80.
The couple’s conflicting views on money lead to anger and stress in the marriage. Angela, who manages their finances and shopping, states, “I just worry that life is passing us by, and we can be doing and spending more on life.” She admits that their frugality can even go to the extreme. “We don’t ever eat out. Vacations are once a year. He always thinks we are poor. Then I need you to tell him that we’re fine financially.”
Brian approaches all spending with caution, because he believes in financial security. This mindset has led him to fear that he and his family are living too much on the edge. He confesses, “I have to be a better husband.” He’s willing to meet them halfway and restore the ground of their relationship. He is the first to admit that being cheap is destroying his lifestyle with Angela.
Financial expert Ramit Sethi makes a powerful point about connection in the context of preparing to manage finances jointly. To strengthen their partnership, he encourages couples to try different approaches for a better marriage. The thing about the two of you is you’ve got all these different areas you can go. So augment, reassess. I don’t think any of it is possible unless you’re truly connected, beginning today. Sethi encourages fun and connecting activities that increase bonding, like taking a class together or having new experiences as a pair.
Now that Brian and Angela are on the cusp of being empty nesters, they look to the future. If they continue to invest like they have been, that will be amazing growth. By the time Angela retires in five years, their combined investments might be worth close to $1.5 million. On the other hand, waiting another five years could drive their investments over $2 million.
As great as their finances look, Angela says they’re living life to the fullest in other ways Time Machine. “We’re not living enough of a life, is the issue,” she states. The married couple now finds themselves in an unfortunate new stage of life. It’s a delicate dance of prioritizing stable financial prospects with vibrant, dynamic lives.
The conflict between financial responsibility and emotional satisfaction is evident in Brian and Angela’s tale. They still find themselves at a crossroads where choices made today will determine their future. Keeping an open mind and learning about each other’s goals and needs goes a long way. This clarity will guide them down a path to greater financial success and life contentment.