Financial Planning for Couples: Get the Female Half Involved

Financial Planning for Couples: Get the Female Half Involved

Advisors often find themselves engaged in developing plans that serve the interests of married couples.

Even these days, when both spouses often have careers and major assets to contribute, one half of the couple often takes the lead role in planning – most often, the male partner. It also bears noting that many women are still working as homemakers and may be used to leaving the man in the driver’s seat when it comes to the family’s finances.

At first glance, this may not seem to pose a problem: you’re planning for both spouses equally, so each should share equally in the benefits. The truth of the matter is often more complicated and the female half of the partnership may wind up with her interests underserved. The solution is to encourage women to step up and take an active role in the planning process.

The importance of this task becomes clear when we contemplate what is being called the Great Wealth Transfer. Likely you’ve heard of it: in the next 30 years, around $30 trillion will move from one generation to the next, but in many cases, this involves money moving from the male half of a couple to the female.

The amount of wealth held by women in America is expected to reach 32% of the total by 2020, part of a rising trend that is expected to continue. However, current information suggests that just 22% of women have completed some form of wealth transfer plan, a major vulnerability that could backfire one day and cause serious financial harm.

Forward-looking advisors must assure that female spouses are fully involved in the couple’s financial planning. Our featured author suggests having each spouse fill out a separate questionnaire on financial goals and risk acceptance. The goals of each party need to be addressed and monitored independently to assure you’re adequately serving both of your clients.

For more information, please read:
Aim for Equality When Planning for Spouses | Wealth Management

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