Financial Conversations: How Common Are These Topics in Your Relationship?

When it comes to financial topics, some answers are more clear-cut than others. A discussion about maxing out a Roth IRA (which you should) may be an easier discussion to have than a conversation about whether a couple wants to save for their child’s college expense. Disagreements may arise and not because there is a right or wrong answer, but because we are all viewing our finances through different lenses.

Below are a few common financial topics that may arise from time to time in a relationship:

Asset Allocation

A common discourse that couples have is what level of risk is appropriate in a portfolio’s allocation. One spouse may want to have an aggressive equity exposure while the other spouse favors a safer allocation to fixed income. Understanding what you are investing for (i.e., your financial goals) can help you as a couple arrive at an asset allocation where you both feel comfortable with the level of investment risk.

Alternative Investments

With cryptocurrencies being the latest craze in the investment world, one spouse may suddenly want to introduce these alternatives whereas the other spouse may be averse to this change.

Alternative investments are not limited to cryptocurrencies. In the past, there have been waves of alternatives such as private equity, real estate, commodities, etc. where couples have discussed whether there is room for these types in their overall portfolio. As Napoleon once said “A genius is the man who can do the average thing when everyone else around him is losing their mind.” Sticking to a simple investment plan can reap benefits in the long-term.

Estate Planning

Nobody likes contemplating their own mortality. Another level of complexity is introduced when discussing with your spouse about who gets what or how much could go to one side of the family. This topic certainly has no right or wrong but arriving at a common ground and consulting with an estate attorney will help you check off any estate planning gaps in your financial plan.

Conclusion

While these may be difficult conversations to have, arriving at an answer in unison can help you plan and take actionable steps to achieve your financial goals. Having a fee-only financial planner on your side to facilitate these conversations and guide you in the best path will help you address these financial topics.

Weingarten Associates is an independent, fee-only Registered Investment Advisor in Lawrenceville, New Jersey serving Princeton, NJ as well as the Greater Mercer County/Bucks County region. We make a difference in the lives of our clients by providing them with exceptional financial planning, investment management, and tax advice.