Duration: 2:41
Making investment decisions is difficult for one person and it is made all the more difficult when another person is involved. It is common to have differing views on risk.
Each person enters the relationship with a different personal history with money and investments. One spouse or partner may be comfortable with being aggressive with investments while the other spouse/partner remains risk-averse.
When the market drops or rises, there’s no easy solution when one partner is risk-seeking and the other person is risk-averse. A period of market turbulence can thrust these differences into overdrive.
Two main steps to help work through these issues:
1) Open communication
2) Consideration of how much risk you can afford to take
One possible solution is to meet somewhere in the middle, taking some risk, but not so much risk that it causes significant issues if the risk does not produce the desired rewards.
Finance Moment…Syverson Strege’s mini-podcasts to provide rapid-fire information on financial topics of the day.