Couples That Invest Together, Retire Together.

Investing is a necessary part of marriage. As important to a couple deciding to get hitched in the first place, setting and obtaining financial goals is vital to building a long, happy, healthy, and financially secure life together.

Investing can feel like an emotional roller coaster, leaving the investor with extreme highs, some lows, and every now an again, things can be flipped upside-down. It can be the best of times, and it can be the worst of times…

So, how can couples invest together without letting their emotions from their marriage or the stress of investing affect their relationship?

Investing as A Couple

As couples build and diversify their investment portfolios, they can keep their cool and alleviate emotional tension during investment volatility by communicating proactively and being transparent with each other.

Steps for couples to consider when investing together.

One spouse may be risk seeking and one spouse may be risk averse… Couples that invest together should have individual and joint investment accounts. Without the compound growth of investments, couples may not reach their financial goals.

Communicate

As with most relationship decisions, communication is essential to successfully investing together. In fact, “open and honest communication (about money) may be the key to happiness,” says Jason Thacker, head of U.S. deposits and consumer payments at TD Bank. According to TD’s 2018 Love and Money survey, 80 percent of couples who characterized their relationships as “extremely” or “very happy” talk about money at least weekly, he says. [1]

Define Success

Next step is for the investing couple to outline and define what success looks like for them individually, then to compare, combine, and prioritize their goals. Housing, providing for children’s education, quality of lifestyle, retirement plans, level of income (active and passive), life insurance, should all have a fixed dollar amount. “When investing conversations become challenging, use your agreed-upon goals as guideposts”, says Mark Astrinos, CPA financial planner member of the American Institute of CPAs’ PFS Credential Committee. “Revisit your life goals and values to remember why you’re embarking on this financial journey to begin with.”

Build A Strategy

Goal setting is often the fun and more easy part of financial planning. But when investing couples back their goals with a strategic plan to reach those goal, the roller coaster can start to get a little bumpy!

No two investors are alike… So, chances are, that couples that invest together have different ideas about how to invest together. However, when couples can agree, upfront, how to invest together, their more likely to stick to their big-picture investment plan. They are also more likely to avoid marital spats over investment returns.

Consider first, paying off high-interest debt. While it is essential to invest as early as possible, if investors are considering investing to gain 7% interest and they are paying credit card debt at 14%, they may be going backwards in terms of finances. Couples that invest together should plan to eliminate credit card debt, so they can free up the payment amount, and amount they spend in interest can go to investing in their future financial goals. [2]

Use A Mediator

Choosing the right financial advisor might seem daunting for our investing couples, but the value is worth the inconvenience. It is important investors do their own due diligence and makes sure that all third parties involved in their finances are properly vetted. Having a natural mediator saves investing couples from turmoil and provides peace of mind.

Value in Money & Relationships

“Investing should be a joint venture with both spouses feeling like they have an equal say,” says Michael Landsberg, member of the American Institute of CPAs’ Personal Financial Planning Executive Committee. “There are synergies to be had when combining forces so take advantage of those potential benefits.”

When couples work side by side with their spouse towards a common goal, there’s almost no limit to what they can do— including building an outrageous wealth that’ll change their families lives!

May all of your investments bring you happy returns!

Credits:

1 – “How to Invest Together and Stay Happily Married” Coryanne Hicks, U.S.News, February 26, 2019

2- “10 Tips for Couples Who Are Investing Together for the Firs Time” David Wealth Management, LLC, September 30, 2018

2 Replies to “Couples That Invest Together, Retire Together.”

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