When I help people manage their U.S. investment accounts, I often see a familiar dynamic where one spouse has a more active role in the family’s finances… to the point where the other spouse doesn’t really know what is going on.
I recently met with an older couple where the husband had handled the family’s finances. However, with the infirmities of old age, he was no longer able to do so. His wife struggled with acknowledging the new reality of her partner no longer being able to take the same role, and was unsure of how and where to begin to deal with investing and banking.
This situation is not uncommon. Many relationships delegate financial work to one spouse. While this may work while everyone is healthy, illness or injury may leave the other spouse scrambling to figure what to do. Having a clear understanding of the family’s financial situation is essential; this includes income, expenses, investments, retirement plans, long-term care insurance, and more.
What can you do to prepare?
In order to make sure that both parties are prepared for any eventuality, work together before a tragedy happens. As long as both partners understand the financial situation and what needs to be done, then the daily technical aspects can be carried out by either partner.
Create an estate plan
Estate plan documents should include information about assets, liabilities, investments, retirement plans, insurance policies, wills, trusts, and other pertinent information. Creating and regularly updating a will and power of attorney are also key steps to take. These documents provide detailed instructions as to what decisions should be made on behalf of the couple if one of them is unable to do so themselves.
Make a list of assets
Both spouses should know all of the family’s assets and debts. Consolidate all financial information in one place. Include your brokerage accounts, IRAs, 401(K)s, Israel pension and savings plans, insurances, and any other investments or liabilities you may have.
Having a plan in place can make a big difference when it comes to managing finances during unexpected times of upheaval, and working with a Certified Financial Planner (CFP®) can provide invaluable assistance. If you or someone you know needs help with their finances, be in touch 02-624-2788.
Douglas Goldstein, CFP®, GFP®, is the director of Profile Investment Services, Ltd. www.profile-financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published June 13, 2023.