Sara Rathner
Appearances
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Luckily, there are financial planners who specialize in all different areas, not just, for example, small business owners, but your particular type of small business. And in any small business, succession planning is so important. Finding a way that you can transition out of the day-to-day operation of your business in a way that makes sense for you. Uh-huh.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
And in your case, it sounds like a succession plan that you could execute more gradually over time. There are two resources we wanted to point out for anybody listening who is asking the same questions you are. If you are looking for a financial planner that specializes in a specific area, you can check out the Garrett Planning Network and also the XY Planning Network.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Both of those networks can connect you with fee-only financial planners. And also NerdWallet has content and tools that can help you find financial advisors.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Hey, everyone. Let's tell listeners how to avoid being a hot mess. Well, financially anyway, I can't help you if you're a hot mess in other areas of your life.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
So on average, about $20,000. That's a lot, so it's pretty forgiving. And even more forgiving, a lot of people would actually be OK if their partner has any amount of debt.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
I mean, luckily, there are benchmarks like these when it comes to retirement saving and also estimating how much you might spend in retirement versus how much you spend while you're still working full time anyway. play with a retirement calculator.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
We have a good one at NerdWallet, and that can help you map out a couple of different scenarios and maybe start formulating some ideas with real numbers behind them. Many people can live off of around 70% to 80% of their pre-retirement income in retirement because there are some decreased costs. A lot of times, people are no longer paying a mortgage.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
That's not always the case, but in many cases, if you've lived on the same property for a long time, it could be You're not paying payroll and social security taxes. Work-related expenses like buying equipment or if you work in an office like dry cleaning, parking, things like that are no longer a factor.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
But you are potentially paying more for travel if that's part of your plan, but also for healthcare because that's the unfortunate reality is healthcare costs obviously go up for many people as they age. And so there are some interesting benchmarks for many people saving between 10 and 15% of their gross income is a good goal. you may want to save even more as you get close to retirement.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
So in case you have some catching up to do, this can help you increase your likelihood of hitting your goal number.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Me too, but I think what I'd also be looking for in a potential partner is what sort of plan they had for dealing with their debt. If they're paying it off, if they're not asking to borrow money from me, I mean, I would consider that a green flag or maybe at least a beige one.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
85% of Americans say that financial responsibility is an important quality in a romantic partner. Hard agree with that, of course. I'm one of the 85% for sure.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
What does that mean? What is financial responsibility in this context? So that includes things like living within your means, saving toward your goals, investing for the future. If you put it another way, few people are attracted to overgrown children who can't handle the logistics of their own lives.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Yeah, if that sounds pretty harsh, well, maybe this is a wake up call for some of you out there who can't handle the financial logistics of your own lives.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Well, as we've said, the fact that you're in debt for any reason is likely not going to hurt your dating prospects, which is a good thing because, like we also talked about, there are a lot of reasons why people end up in debt that have absolutely nothing to do with their character. But prospective partners like to see progress on financial goals. Are you making regular payments towards your debt?
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Are you adjusting your spending habits to free up more of your cash every month to pay off your debt more aggressively? Those types of actions communicate to other people that you're not sticking your head in the sand. You are addressing your debt head on.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Yeah, and just because the red flags are entertaining from the outside, just when you're living it, it's not great.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
I want to mention that. But a big thing is honesty, being honest about your financial situation, being honest about your plan to pay off your debt and meet all of your financial goals. Those are the green flags. People just want to know that you're going to be a life partner, not a financial burden.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
But if you lie about how much debt you're in, if you lie about your financial situation, big waving red flag right there. Around two-thirds of Americans say they would not continue to date somebody who lied about how much debt they have.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Yeah, if you happen to be the one who's in debt, it's totally fine to use dating as a motivation to get out of debt. But ultimately, pay down that debt as a gift to yourself, not to somebody else. Because if anything, if you do find a partner later on, you'll feel more like you have your life in order and you have more to give to another person.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
But even if you don't find another partner later on, then you've done yourself the tremendous service of paying off your debt and gives you lots more options in life. I'll also say something to all those couples out there who struggle to talk about money.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
A big thing to do is to try to create a culture of safety within your relationship because it's really hard to be honest about being in debt if you think your partner is going to judge you instead of hear you. If you're safe to talk to, your partner will talk to you.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
And if they lie to you, it could actually be because they're a dishonest person, but it could also be because you can't handle the truth and they're afraid to tell you the truth.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Before we get started, I just want to remind you that everything we talk about today is just for educational purposes and is not specific financial advice. And while Sean is a CFP, he's not your CFP. So does that sound good?
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
All right, great.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Tell us a little bit about the farm itself. So before we get into all the money stuff, give us an idea of your work.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Are these to like restaurants and other clients like that?
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
I feel like that's really common for small business owners, regardless of what industry you're in. When you first start the business, it's very informal when it comes to managing your personal finances and your business finances. And then as you become more established, you formalize things more and more.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
And then you begin to do things like pay yourself a salary rather than just take money when you need it, things like that, and handle your accounting differently and your accounts differently. I think listeners who maybe don't run a farm, but who do run a small business can see a lot of themselves in your experience.