Most newlyweds know that investing can be riskier than just stowing money away into a money market account or CD. As a couple, you may have very different ideas on how to invest your earnings. Instead of every man and woman for him or herself, you should talk to your partner and find out what he/she would like to do as well as inform them of your own ideas. Together, you will be able to find a comfortable investing balance.
Studies show that men are bigger risk takers than women (no surprise there, right ladies?). Some husbands may want to go all in like a poker game – “I have a good feeling about this!” Most wives, on the other hand, would rather their retirement savings stay where they are, safe and sound earning a small but steady percentage in the bank. So how do you find a balance?
By talking to one another (it’s always about clear communication!), you can figure out what your long term and short term goals are. Examine your budget and decide what sort of investment risks you are actually able to take. If money is tight, it’s best to avoid any sort of risk until things are more stable. If you have plenty to play with, you can try jumping into the pool and seeing what happens.
Overall, both of you need to agree on where you stand and how to handle your funds. Don’t just talk about what you want either – if he wants to invest a lot of money now and you keep saying, “But we don’t have the money!” it may not sink in. You should actually have the numbers in front of both of you so you can see where your money is being spent, how much is coming in, what is spent on bills, and so forth. When money is mapped out, it’s much easier to organize it and control it, rather than just talking about it arbitrarily.
You do both have the option of investing separately; he with his money and she with hers. If you decide to go this route, agree upon which funds should not be toyed with; these can include emergency funds, retirement funds, and the amount needed for basic living expenses.
Whether you invest together, separately, or not at all, you should consider coming together once a year and reevaluating your portfolios and budget. Make sure it all balances out and that the risks are worth taking.
What investments (risky or not) have you and your spouse taken? Did they pay off or cause too much tension in your relationship? We’d love for you to leave us a comment!