Money and the Battle of the Sexes
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In a survey of affluent married couples, 56% of husbands said they were the primary financial decision makers, but only 20% of wives said their husbands took the lead when it came to money matters.1 In fact, 61% of the women said they made financial decisions jointly, whereas only 42% of the men reported that they made these decisions with their wives.2 In other words, a majority of married couples have different ideas about money. No surprise there.When it comes to your financial situation, are you and your spouse on the same ledger page? Miscommunication in this area can lead not only to confusion, but also to some unpleasant consequences.Retirement Ready?When it comes to retirement, what couples don’t know about each other can hurt them both. More than 30% of couples responded differently to questions about when they were going to retire, the kind of retirement lifestyle they were seeking, and whether they planned to work in retirement.3 Different expectations about these matters can easily lead to a situation in which a couple’s retirement savings may be inadequate to provide the lifestyle they both desire.In fact, 62% of the couples who did not make financial decisions jointly were unprepared for many aspects of retirement, including not having a current will, the appropriate insurance policies, and other adequate estate conservation arrangements.4Death Is Not the End (of Financial Troubles)Unfortunately for couples who neglect to discuss financial issues, the pain of losing a spouse can be compounded by financial headaches. Unless both parties are fully informed about the family’s finances, the surviving spouse could be left with a confusing mess. This could cause bills and taxes to go unpaid, bank and retirement accounts to become lost, and insurance polices to lapse. The survivor could also miss out on collecting any death benefits that are owed to him or her.When both spouses are informed about the household finances, it can reduce the potential for mistakes, misunderstandings, and lost opportunities. It can also help ensure that both spouses are prepared to fund a comfortable retirement.1–2) Financial Planning, June 20073–4) Business Wire, April 17, 2007Fee-Based financial planning 11100 Wayzata Blvd, Suite 161•Minnetonka, MN•55305Phone: 952.277.4259Toll Free: 800.626.7095•Fax: 952.277.4301
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