Money can have an interesting effect on people. Too little of it and the stress on one person can be overwhelming. A great deal of it can have a different effect and sometimes not positive on certain types of people. When you factor in how two people who are either married or in a committed relationship are affected by money, a deficiency or a large surplus of it, then the variables of what can happen will grow in numbers.
If you add in the other aspects of wealth management such as investments, inheritances, taxes, insurance, and so on, then the impact on a relationship can be far reaching and have either disastrous or wonderful effects, depending on the circumstances.
Take for example one couple we have examined. They have real challenges and one spouse is deeply stressed. There is a significant age difference, the older one has been the primary breadwinner and literally keeping the finances largely secret from the younger, non-working spouse. It is unknown what exactly will happen to the younger spouse should disaster ensue for the other. Efforts by family and friends for the couple to seek professional financial help have been met with resistance, and even the younger spouse will not seek help alone to get independent guidance.
We interviewed another couple who also had challenges, but with vastly different outcomes. They both are recently retired, having worked their entire lives with somewhat similar earnings levels. The wife has taken responsibility for the finances for years, and was the primary point person for their relationship with their advisor. They have been open with each other on all financial issues. For several years she has grown worried about the advisor they have been using. While she bore the brunt of the stress, the husband was very upset knowing the impact on his wife was great. She finally dedicated time to research and select a new financial advisor, and they both feel a tremendous weight off their shoulders and state its one of the best decisions they have ever made. They were completely on the same page.
So, what should couples do as best practices when it comes to wealth management? Here are some tips:
- Be aware that all things financial can be very stressful-don’t kid yourself otherwise
- Honesty is the best policy-especially when it comes to your own ego in admitting there is likely much you as a couple do not know
- Share information and feelings about your finances freely
- Take action, even simply reading blogs or newsletters to get started
- Get professional help, ideally from a licensed financial advisor who has clients similar to your specific situation
- If your significant other refuses to share or cooperate, seek help yourself, even if it means doing it in secret. One informed spouse is better than none
- Take a deep breath and try not to stress, as there are many before you that have been in whatever situation you are currently in
All things relating to money will assuredly impact your relationship. By being open and getting empowered with information, your wealth management circumstance can actually improve your relationship and individual well-being.
http://www.MyPerfectFinancialAdvisor.com is the premier matchmaker between investors and advisors using personalized data, proprietary algorithms, and deep industry experience.