Investments are a very important part of retirement planning. This is also a very tense area that needs to be covered by couples. There are several studies conducted that show that bad investment planning is the reason for stress between many couples. For many, investment is just a monthly expense and they don’t feel the need to give it adequate attention. Hence, they are not treated as a priority by many couples in their early years. By the time they start, too many investment plans and options exist, and the stress of their management takes a toll.
To avoid such tense situations, we at Fibe have compiled a list of ten mistakes that are commonly made by couples.
Ten Avoidable Investment Mistakes by Couples
1) Playing the One-Man Game
Teamwork takes the top spot on this cheat sheet, it is the key to making a successful investment decision among couples. Usually, couples forget to share their investment plans and strategies with each other, especially when there is only one person who handles finances.
But always remember under unusual scenarios (like untimely death and accidents), leaving the other in the dark can lead to serious consequences. So, make sure both partners are aware and knowledgeable about it.
2) Missing Regular Review and Planning Sessions
Investments can turn complex if not reviewed frequently. Make sure you check your investment plan and update your accounts once every month.
This not only helps you to keep a check on your finances and find unnecessary blockages, but also creates a sense of trust with your partner. Make sure that both of you agree with the strategy to avoid future problems.
3) Skipping the Long-Term Goals Conversation
Discuss what you expect from your investment in the future and how you plan to grow them. Make sure both of you give in to your inputs and the other agrees with it.
Does your spouse plan anything for that money? Do you agree? Do you think there are better plans? Make sure you clear the air between you.
4) Accepting Each Other’s Spending Habits
Spending habits is a very common reason for fights between partners. Ensure that you give enough space to your partner, but there is no harm in advising each other if one tends to over spend.
However, constant nagging may lead to distress in the relations and also impact the financial health.
5) Giving Control to One Person
In most homes, finances are handled by the breadwinner of the family. But this could be a very irresponsible mistake. To understand it simply, can a relationship work if 100% power is in one hand? Nope! Similar rules follow for financial decisions, too.
6) Handling Urgent Money Needs
Urgent money needs are common. Unexpected scenarios can come anytime so be prepared for them in advance. Discuss them with your partner and make sure you both agree with the terms.
It’s always advisable to have a corpus of your 6 months salary as “Emergency Fund” locked up safely.
7) Not Having A Solid Plan
Planning saves lives and in this case money! Have plans for your investments and if you plan to expand your family in the future, you must discuss your investment strategy accordingly.
8) Not Diving Deep
Communication is the key here. Be good at communicating and do not skip the little details. Be transparent with your investments and make sure you both agree with them.
9) Having Insurance Cover for Only one Person
Do not miss your partner if you’re handling your finances alone. It is important that both of you are covered under proper plans.
10) Jointly Handling Personal Finances
Agreed, this is contrary to what we’ve preached until now. But it is important to understand what decisions must be done separately and jointly. If you know some financial decisions are going to cause problems, then avoid them.
Plan Your Investment Strategy
Investment planning is a very essential part of any relationship. It gives you a sense of security and help the partners trust each other. But it can turn messy if not given proper attention. Avoid these ten mistakes to have a truthful and successful investment plan with your partner.