Division of labor often makes quick work of household chores. One spouse cooks while the other cleans the dishes. One tackles the laundry while the other mows the lawn. Generally, one spouse is also in charge of the family finances, which may include paying the bills, shopping for mortgages and insurance policies, and managing the investments.
Splitting chores isn’t usually a problem, until it is. If the spouse who handles the finances becomes incapacitated or dies, the surviving spouse may not be knowledgeable enough to handle the major money decisions.
As financial advisers, we strive to ensure that both spouses are well-informed and comfortable with their household finances. We create a comprehensive plan unique to your financial situation, considering your short- and long-term goals, and providing guidelines to follow when making investment decisions. Yet, we still hear the excuses, “He’s just not a numbers person,” or “She isn’t interested in these things.”
While your spouse may not care about the beta of your retirement portfolio, there is a very good chance that he or she is concerned about how much risk you’re taking with your financial future. The truth is that your spouse isn’t indifferent to your family finances. It could be that they approach financial decisions or goals on more general terms. For example, your spouse is passionate about supporting a charity or giving regularly to the church. The details are that you can find the most tax advantageous way to give, whether that is donating a highly appreciated stock or making a qualified charitable distribution from your IRA. The key is to meet your spouse on the level at which he or she operates.
A financial adviser can also help mitigate many of the negative emotions that come with family finances. If a reluctant spouse resents being told what to do with his or her money, creating an overarching financial plan with an adviser can incorporate each spouse’s goals with measurable steps and an achievable timeline. If blame is a common argument when it comes to lack of savings, an adviser can project how your spending and saving patterns will affect your long-term goals. If the ambivalence stems from lack of knowledge or skill, a financial adviser should be able to accommodate the client’s desired level of involvement in the day-to-day decisions.
Since money and finances rank as one of the top issues couples fight about, the “uninterested” spouse needs to be included in the financial planning process. Responsibilities and tasks can still reside with the spouse who has an aptitude for finance, but decisions should be made together and in the best interest of both. Should something happen to the one who pays the bills, the surviving spouse should be able to carry on without difficulty.
If you have questions on how to engage your spouse in the family finances, the experts at Henssler Financial will be glad to help:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
This article is for demonstrative and academic purposes and is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
