Discuss Finances with your Spouse
My friends in the financial planning business routinely tell me about couples who do not share information with each other about their finances and how one spouse or the other has no clue about what would happen to them financially if the other spouse were to suddenly pass away. A another friend of mine was looking for some advice about investments, so I sat down with him to go over what his options were.
I expected his wife to join in and at least listen. She not only did not join in she said she had no interest in the subject and felt that her husband would make all of the right decisions. What a mistake in my opinion.
Get in Involved
Even my own wife will not get involved in the details, although I have introduced her to our financial adviser and I routinely discuss investment changes with her, I know she is only half listening.
It is a well established fact that women live longer than men, and chances are that your wife will have to deal with the aftermath of your investment planning. Doesn’t it make sense that she should know what is going on? I purposely used these genders in the previous sentence, since this appears to be by far the norm. With baby boomers now retiring in droves it is even more important that everyone take more interest in planning their retirement years.
Men and Women have Different Goals and Objectives for Retirement
It should not be surprising that men and women have different ideas about retirement. Even though you have been with your spouse for many years your plans and opinions about what you would like to do in retirement may be quite different.
The only way to get at this is to start talking about your finances and your plans. Using a financial plan as the catalyst is a good way to start. A financial plan requires assumptions to be made about your needs for retirement, so discussing these assumptions will go along way to getting each other engaged in planning your finances.
Two Heads Better than One
Two heads are better than one anyways and I have definitely found that with my own spouse. Although some of her desires are different than mine, she has come up with ideas and suggestions that I would not have thought about.
And sometimes when you state an assumption and someone asks you to justify that assumption, you are going to find out that you cannot. This challenge is good in that it makes you think things through better, so take challenges in a positive light and not as an affront to your planning skills.
Who Is Dominant
This subject may seem archaic, however in every relationship one spouse will be more dominant than the other in various areas. If one cares more or has more expertise, let them take the lead, however never relinquish the topic solely to the other spouse. You need to stay involved for the reasons I mentioned earlier and make a contribution to the discussion.
Your dominant spouse will appreciate your input and thoughts if both of you have a mature attitude about the subject and do not let your emotions get the better of you.
It is not easy to do a financial plan emotionally with your spouse but it is well worth the effort. Once you have all of your assumptions made and the facts about your current situation, developing the financial plan is pretty simple!
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