Thursday, May 13th, 2010
I’ve been talking about a situation that most retired couples are in right now – where one person handles all the financial activities and the other one doesn’t take an interest in it. This is a big mistake many couples make, because if the spouse who doesn’t handle the finances outlives their mate who does, they won’t know what to do with their investments and other money.
Ask yourself now, “What system do you have in place should the uninvolved spouse be the surviving spouse?” “What system and people do you have in place to take care of that surviving spouse so they don’t have to make decisions in an uncomfortable environment that they are not used to making without having you around?”
In my opinion, turning the reins over to a grown adult child is not the best of all systems. Your kids probably aren’t always going to see eye to eye with you, so it’s going to be very difficult for them to put themselves in Mom or Dad’s shoes and give them un-biased, independent, and most importantly, unemotional input. They’re just too closely connected to the family and the situation.
If you are the spouse who handles the finances, it’s time to find and start a working relationship with a trusted financial advisor. It’s important to establish a high trust relationship before anything happens. Don’t wait until after somebody passes away. The time to get that relationship in place is now!
I’m here to suggest that the best approach is to get that trust and confidence level established while you are both still here so you can talk about the relationship with your financial advisor and make sure the spouse that doesn’t deal with financial issues is comfortable relying on that advisor. This makes the transition a heck of a lot easier. There is less emotional stress and strain when your spouse has time to develop a higher level of trust and confidence.
Again, I believe the best approach is that, if you’re working with a professional now, let your spouse get to know them and how you work together. And if you don’t work with a professional, it’s time to find one you both have trust and confidence in.
Tags: brian Fricke, certified financial planner, family finance, finance, financial advisor, Financial Management Concepts, financial planner, Financial planning, retirement, retirement planning, wealth management
