You have to first get financially naked, yes this might sound a little harsh.
Encourage your spouse to invest more in mutual funds, ask for their opinions
Most couples are initially very hesitant regarding the discussion about money matters, but it is very important to take this up sooner than later. Problems crop up if you remain silent regarding this particular matter. Studies have shown that misunderstandings become intense and the root cause remains the same i.e. money as people don’t communicate clearly about their goals that are directly related to money.
So to avoid stress in your relationship, it is important that you sit down with your spouse and chalk out a financial plan i.e. a financial roadmap on which you will be together creating a solid secure future.
So what are the most important things to discuss here?
Talk about your financial status
You have to first get financially naked, yes this might sound a little harsh but then you both need to understand each other’s financial condition only then will you be able to come up with an effective financial plan. This isn’t easy talking about financial conditions can be a little bit tricky but remember you have to do it to avoid any sort of confusion or misunderstanding. Plan your expenses based on your earnings believe it or not being transparent about financial matters will make your bond stronger.
Investing together for the future
Once you are done with the planning think about investments together. Mutual funds are great if you want good returns, your spouse too will agree with you. This way you will be able to manage your finances as well plus the life after retirement will be pretty blissful for the two of you. You can invest in equity funds which are quite stable, further large-cap funds are great too you can at least rely on these. Now if you are not sure about how much you or your spouse is ready to invest right now, there’s a way to sort that too… you can opt for systematic investment planning which doesn’t require you to invest large amounts. You can invest whatever you feel like from time to time.
Mutual funds are great because your wealth is getting accumulated and later you can reap the benefits by opting for a systematic withdrawal plan, this way you can draw your money (whatever amount you need) over a while. This amount will directly go into your bank account. Just discuss with your spouse what you are planning to do because consent is necessary, yes, the money is yours but if you take your better half’s consent he or she will feel wanted and loved. See, the bottom line is it is not just about money it is about mutual trust and love.
Discuss your retirement goals
Tell him or her about when you are planning to get retired, what are your plans post-retirement, how will you manage the expenses, what will be the source of income, and many more, just speak clearly about everything. To make your life happy after retirement you have to invest properly while you are still working and mutual funds can be your best friend in this regard as you will get good returns on monthly or quarterly basis just explain everything to your spouse and give him or her the assurance that there is no veil of uncertainty hanging in between as far as income is concerned. Life will be smooth as always even after retirement. You can also invest in fixed deposits, life insurance is a must to make sure that your beloved’s life goes on smoothly even after your death, talk to her/him about the medical insurances and all the things that are covered already. You have to provide all your credentials to your spouse in case you forget or die suddenly she or he shouldn’t feel stranded right?
Saving for kid’s education
Talk to your spouse about the education of your kids, if you want any at all. You both can split the financial responsibilities. That way, the pressure will be relieved to a great extent. Two is better than one right? Not just the education but the entire expense starting from the beginning till the child becomes independent (here we are talking about everything related to childcare and career)…that’s a pretty long way so do not forget to take it up with your spouse. The number of kids you want is a huge factor you can’t really avoid because your the expenses will vary accordingly… are you both ready to take up the responsibilities? Discuss it in and out.
Handling debts is yet another important stuff that you need to discuss with your spouse. You have to disclose the amount of debt you are into, what all loans you have taken, your credit score, credit card debts, mortgages if any, etc. this way, both of you will be able to figure out ways to make an effective financial plan. How much luxuries you both can cut down on, how you can save more, your spouse might suggest you a very helpful way to tackle these things efficiently so never hesitate to talk about these important things which might seem little but aren’t actually little…
Encourage your spouse to invest more in mutual funds, ask for their opinions, etc. Ask them to define their financial goals, ask them about how they treat money, what would they love to do if they had a lot of money… would they invest somewhere to increase their assets or just behave like a spendthrift person? These discussions are necessary to understand where both of you are standing and how you both are different. For long term and short term benefits you can always persuade your spouse to think about mutual funds, there are various types of mutual funds such as hybrid funds, equity funds, money market funds, debt funds, open-ended funds, interval funds, closed-ended funds, and the list continues… just discuss all the pros and cons with your spouse to take a unanimous and good decision that will be beneficial for your family as a whole.
That’s why Comparte Investment team asks do you have “Nivesh Ki Aadat”.
With this one can say “Mutual Fund Sahi hai”, so let me do Nivesh