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Investing as a couple: Getting to a compromise

Posted February 04, 2015 in Advice Column, Urbandale

With Valentine’s Day just around the corner, many Urbandale couples are thinking about the perfect gift to get their sweetie. Celebrating this special day with your partner is one of the fun moments of being part of a couple.

However, as we all know, being in a relationship requires compromise. That give and take is present in many aspects of couple hood, and investing is often one of them. In a perfect world, both halves of a couple would share the same investment goals and agree on the best way to reach them. In reality, this is rarely the case. So how do you bridge that gap?

First, define your goals

Understanding your joint financial goals is the first step toward developing a road map for dealing jointly with investments.

Make sure the game plan is clear

Both spouses knowing how and why their money is invested in a certain way can help minimize issues if investment decisions don’t work out as anticipated.

If you’re the more conservative investor:

·         Do your homework. Though past performance is not a guarantee of future returns, understanding how an investment typically has behaved in the past or how it compares to other investment possibilities could give you a better perspective on why your spouse is interested in it.

·         Consider whether there are less aggressive investments than what your spouse is proposing, but still push you out of your comfort zone. Compromise.

If you’re the more aggressive investor:

·         Listen to your spouse’s concerns. Additional information may increase a spouse’s comfort level, but you won’t know what’s needed if you automatically dismiss any objections.

·         Concealing the potential pitfalls of an investment you’re interested in could make future joint decisions more difficult. Particularly if your credibility suffers because of a loss.

·         Spreading the investment out over time may help your spouse get more comfortable with taking on additional risk.

What if you still can’t agree?

Consider investing a certain percentage of your combined resources aggressively, an equal percentage conservatively, and a third percentage in a middle-ground choice. This gives each partner equal input and control of the decision-making process.

Information provided by Frank Mokosak, 2900 100th St., Ste. 102, Urbandale, 515-223-5404.

Registered Representative, Securities offered through Cambridge Investment Research, Inc. a Broker/

Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research

Advisors, Inc., a Registered Investment Advisor. Cambridge and Mokosak Advisory Group are not affiliated.

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