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Partners in Wealth: Making Financial Decisions Together

Summary:

How frequently do you and your partner collaborate on financial decisions to reach mutually satisfying outcomes? Research shows that couples experience greater relationship satisfaction and longevity when both partners actively participate in financial planning and decision-making.

How frequently do you and your partner collaborate on financial decisions to reach mutually satisfying outcomes? Research shows that couples experience greater relationship satisfaction and longevity when both partners actively participate in financial planning and decision-making.

​Let's explore strategies to help you and your partner work together more effectively in managing your wealth and achieving your financial objectives.

The Benefits of Financial Partnership

There are compelling reasons why couples should join forces in addressing their investment and financial matters:

  • Enhanced Goal Commitment: When partners establish financial goals together, they're more likely to stay committed to those objectives, compared to situations where one partner dictates the financial direction.
  • Emotional Support During Market Volatility: Even well-crafted financial plans can falter during market turbulence if emotions lead to hasty decisions, such as selling investments after a significant decline. Partners can help each other maintain perspective and avoid reactive choices.
  • Planning for Longevity: Statistics show that women typically outlive men, meaning wives may need to manage finances independently for several years. Waiting until widowhood to learn about financial management could lead to serious complications, even with professional guidance.
  • Mutual Accountability: Regardless of which partner has stronger financial aptitude, both should contribute to financial decisions. Solo decision-making places undue burden on one partner and can breed resentment if outcomes are unfavorable.
  • Relationship Health: Financial disputes are consistently identified as a primary factor in divorces, with some studies suggesting they're the strongest predictor of marriage dissolution. Collaborative financial management can help minimize money-related relationship stress.

Strategies for Successful Financial Collaboration

If you're looking to improve your financial partnership, consider these practical approaches:

  • Enhance Financial Literacy: If one partner feels less confident about investment knowledge, start with reputable educational resources to build a foundation of understanding before exploring more complex topics.
  • Share Decision-Making Authority: Effective collaboration requires both partners to participate. If you're the primary financial decision-maker, examine your reasons and explore ways to include your partner's perspective more meaningfully.
  • Align Your Objectives: Schedule regular discussions about your individual and shared goals. People's aspirations often evolve, so maintaining open dialogue is crucial. Try creating separate lists of major goals, ranking them from 1-10 by importance, and comparing notes. Clear objectives can guide better decisions and compromises. When evaluating financial choices, consider how they align with your stated goals.
  • Address Risk Tolerance Differences: Partners often have varying comfort levels with investment risk. When one prefers aggressive investing while the other favors conservation, consider these factors to find common ground:
  • Financial Position vs. Goals: If you've accumulated sufficient wealth to meet your objectives, you might prioritize wealth preservation. Alternatively, substantial wealth might allow for more aggressive investment approaches.
  • Emotional Well-Being: Consider whether one partner's preference for financial stability outweighs potential returns. Sometimes, relationship harmony is worth adjusting investment strategies.

There's no universal solution—the key is having thoughtful discussions to develop a strategy both partners can embrace.

5.   Leverage Professional Guidance: A trusted financial advisor can facilitate productive discussions about crucial             
      financial matters and help couples reach consensus. They can clarify complex issues, allowing you to focus on the
      practical implications of financial decisions.


Conclusion: Financial management, like marriage, thrives on partnership. Taking steps to collaborate effectively with your spouse on financial matters can lead to improved relationship satisfaction, financial outcomes, and peace of mind throughout your lives together.

Tim McNeely
Advisor to Dental Entrepueriers 

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This material is intended to be used for educational purposes and does not constitute a solicitation to purchase a security or investment advisory services. Some material on this site has been researched and prepared by BSW Inner Circle and its affiliates, CEG Worldwide, LLC and AES Nation, LLC. Timothy J McNeely has retained AES Nation to conduct research and prepare informational materials for his use. Mr. McNeely is a member of CEG Roundtable and pays an annual fee for these services. Mr. McNeely is involved in these activities through The LifeStone Companies.

Some materials is published by the VFO Inner Circle, a global financial concierge group working with affluent individuals and families and is distributed with its permission. Copyright by AES Nation, LLC. This report is intended to be used for educational purposes only and does not constitute a solicitation to purchase any security or advisory services. Past performance is no guarantee of future results. An investment in any security involves significant risks and any investment may lose value. Refer to all risk disclosures related to each security product carefully before investing..

*Timothy J McNeely is an Investment Advisor Representative.  All investment advisory services are offered through a RIA. The LifeStone Companies are not owned or legally affiliated with RIA and the activities conducted by Mr. McNeely under The LifeStone Companies are considered educational activities and are separate outside business activities.

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