The Ultimate Marriage as an Investment Quiz

By: Staff
Image: refer to hsw

About This Quiz

You're getting married. How exciting! But as the big day approaches, the wedding costs start to add up and all of a sudden you are wondering if getting married is really worth the cost. You may be thinking there are better ways to spend the money you are putting into this one big day. But there are also some financial benefits to being married. Take this quiz to see whether or not marriage is a good financial investment for you.

What was the average cost of a wedding in the U.S. in 2008?

In 2008 Americans were paying an average of $28,000 for a wedding, including everything from the ring to the honeymoon. This is double the average amount that was being spent on weddings in 1990.

What do newly married couples often buy that further adds to the marriage costs?

A house is another big expense that often comes with getting married.

How much were Americans paying on average to buy a new house in 2008?

Despite the slump in the U.S. real estate market in 2008, the average cost of buying a new house would still have set you back $296,400.

What does financial author Jeffrey Strain suggest may be a better option than spending on a big wedding?

Jeffrey Strain suggests that putting money into an IRA (individual retirement account) will leave you with plenty of money for a comfortable retirement, rather than incurring the loss of revenue, or even debt, from getting married.

What does the phrase "marriage penalty" refer to?

The marriage penalty is an unofficial phrase referring to the increase in taxes a couple incurs once they get married.

Why do you incur more tax once you are married?

Both incomes are added together, pushing the couple into a higher tax bracket. Therefore, they pay more tax than they would if they were single, even though they are earning the same amounts.

What are the options for a married person when filing a tax return?

There are two options for a married person when filing a tax return. The first is to file as married but separately, and the second as married and jointly. You'll incur less tax if you file as married but jointly.

Why was 2003 a good year in the U.S. for married couples in terms of tax?

In 2003 married couples in the 10 and 15 percent tax brackets were taxed the same as if they were single, no longer incurring the marriage penalty.

How does being married become a benefit when selling a house?

A married couple doesn't pay capital gains tax on up to $500,000 in sale profit on a house, whereas a single only gets $250,000 profit tax free.

What is another aspect of life that may be financially improved by being married?

When two people earn toward a retirement savings fund they can earn up to 20 percent more than a single, according Gerry Simon of the Edward Jones investment company.

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