This post is part of our week-long series on Creating Financial Transparency for Couples.
5. There’s no unified financial plan.
Jay cuts right to the heart of the problem when he says, “It makes it very difficult to plan our future when half of the money isn’t really visible for planning.” Jay and his wife need to create a Joint Portfolio. This Joint Portfolio should provide balance across all their retirement plans. For example, if Jay has a large share of his company’s stock, his wife could avoid that market sector/market cap size/etc in her own portfolio, thus balancing Jay’s portfolio. At the very least, Jay and his wife should be aware of each other’s holdings. Perhaps they could balance the entire joint portfolio once, then each be responsible for re-balancing their own portfolio each quarter. Creating a Joint Portfolio takes a lot of time and effort, so it should probably be a long-term goal. We are just now outlining the steps we’ll take and starting our research. Jay and our other readers can follow our progress as we go.
This concludes our series on Creating Financial Transparency for Couples. I hope that Jay and his wife will find our suggestions helpful. It’s worth it to check out the books I referenced as well. Though they are not all specific to finances, they offer suggestions on how to communicate and set boundaries to build a strong foundation in your relationship. When you are comfortable, it is much easier to work out money issues. Best wishes to Jay and his wife!
Other posts in this series:
1. There are two different methods of documentation being used. (Monday)
2. There are unclear privacy boundaries. (Tuesday)
3. There are two different spending styles at odds. (Wednesday)
4. No dedicated time exists for talking about finances. (Thursday)