Weddings and Financial Planning with Joe Grochowski
In this episode of Vector's Well Balanced podcast, Ezra Firkins and Joe Grochowski discuss the financial aspects of planning for weddings, particularly focusing on how parents can support their children while managing their own retirement plans.
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About this Episode
In this episode of Vector's Well Balanced podcast, Senior Wealth Advisor Joe Grochowski discusses the financial planning aspects of weddings, particularly focusing on how parents can support their children while managing their own retirement plans. We explore the rising costs of weddings, the importance of budgeting, and the emotional significance of these events.
7 Key Takeaways:
The average cost of a wedding is trending upwards. $30K+ on average.
Parents often want to help make their child's wedding special.
Planning for the costs of a wedding should ideally start in advance.
Begin assessing available financial resources for wedding expenses.
Avoid tapping into retirement funds or high interest debt for wedding costs.
Setting a realistic budget that includes some overages.
Planning for milestone events can enhance the joy of the occasion.
Chapters:
00:00 Introductions and Setup
00:42 Scenario: Kids Get Married. Mom & Dad Spend.
01:04 Planning for Wedding Expenses
03:18 Bucket Base Approach to Planning
04:58 Avoid High Interest Loans
06:39 Setting Aside the Funds
09:21 Start Early - Final Thoughts
🎙️ Transcript (adapted for readability)
Ezra Firkins:
Hello and welcome to another edition of Vector’s Well Balanced podcast. I’m Ezra Firkins, Communications Director at Vector Wealth Management, and I’m here with Joe Grochowski, Senior Wealth Advisor at Vector. Welcome, Joe.
Joe Grochowski:
Thanks, Ezra. It’s great to be here.
Ezra:
Today, we’re diving into weddings—a major life event, especially for families with adult children. It’s joyful, emotional, and often, expensive. Joe, let’s unpack what this means financially for the parents, particularly those nearing retirement.
Joe:
Absolutely. Weddings are often one of the most memorable events in a family’s life. But the financial side can be overwhelming, especially for parents in their late 50s to 70s who may also be preparing for retirement. Balancing the emotional desire to contribute with long-term financial security is key.
Ezra:
Let’s start with the numbers. In 2025, the average cost of a wedding in the U.S. hit $33,000—up from $30,000 in 2022. Here in Minnesota, costs may be a bit lower, but it’s still a significant outlay. If the couple contributes around $5,000 to $10,000, that leaves $20,000 to $25,000 for parents to cover. Where should that money come from?
Joe:
That’s the big question. Ideally, it comes from thoughtful planning, just like any other financial goal. We recommend taking a bucketing approach, similar to retirement planning. Start by reviewing cash reserves—what’s available without compromising your emergency fund. Then look at liquid investment accounts, such as taxable brokerage accounts. Gifting from grandparents is also a possibility, with the 2025 annual gift exclusion set at $19,000.
Ezra:
What should families avoid when funding a wedding?
Joe:
We strongly advise against tapping into retirement accounts or using high-interest debt like credit cards. Borrowing at 15%–20% interest is rarely a good idea unless it’s repaid quickly. Even personal loans typically carry higher rates than secured borrowing options. If you can’t afford a $100,000 wedding, that’s okay—you can still have a wonderful celebration within a realistic budget.
Ezra:
Right. It’s about setting expectations early and planning accordingly. How do you help clients model these decisions?
Joe:
Through our Sojourn Wealth Plan. We can model out a $25,000 withdrawal and project its impact over 20 years. If it’s feasible, we then align the portfolio with that timeline. This includes investment selections that support planned withdrawals for wedding expenses—like venues, deposits, and vendors—often paid well in advance of the event. That proactive approach helps reduce financial stress for families.
Ezra:
I imagine a lot of families don’t think about planning for a wedding until it’s happening.
Joe:
That’s very common. The event often materializes first—then the financial adjustments begin. That’s why we encourage clients to bring their advisor into the conversation as early as possible. Whether it’s a wedding, anniversary trip, or other milestone event, we help them plan for joyful moments while maintaining their long-term financial well-being.
Ezra:
That’s such a valuable perspective. Joe, any final thoughts?
Joe:
Just that these are some of the most rewarding experiences we share with our clients. Helping families plan for a once-in-a-lifetime event, reducing their financial stress, and seeing it come to life—it’s a joy and a privilege to be part of that process.
Ezra:
Absolutely. Thanks for sharing your insights today, Joe.
Joe:
Thanks for having me, Ezra.
These discussions aim to spark dialogue about enhancing retirement readiness and making more informed financial decisions. At Vector, we delve into the nuances of scenario planning, offer insights and guidance tailored to each client's unique circumstances. If you or someone you know is pondering their financial future or seeking clarity on their retirement plan, we're here to help.
This discussion is between Joe & Ezra.
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