Marriage & Money: Are Women Equal Partners With Men?

If you’ve got a snap answer to this question, then you probably have a personal experience with this issue – like I do – that has swayed you one way or the other.

Despite the power and influence women have gained in the workforce and elsewhere over the years, studies tend to show that there is a clear “gender gap” when assessing who controls the money within the household.  All too often, women tend to capitulate to their spouses on key financial decisions, retirement planning and perhaps even day-to-day household spending.  But what is also well known is that women are more likely to outlive their spouses and, as a result, may be ill-equipped to handle some of the thornier financial challenges which may arise later in life. 

Most people have a story to share of how money matters were handled in their own families growing up.  And an important learning from these stories is that women need to be equal partners with their spouses on financial matters and that their risk tolerances need to be taken into careful consideration.  Husbands and wives often have a different mindset when it comes to taking financial risk and the types of savings vehicles needed to support a long-term financial plan or a retirement income strategy.  For example, if you were to survive your husband later in life, how comfortable would you feel with a portfolio of illiquid rental real estate as the primary source of retirement income?  Alternatively, would you be more comfortable with traditional retirement income asset classes such as mutual funds, a diversified stock and bond portfolio, or an annuity?

Additionally, any potential “survivorship” issues also need to be carefully planned and thought through as a couple.  Issues like, should money be tied-up in trusts after your husband passes away, making access to your wealth more difficult?  Should your current will have “spendthrift” provisions in them limiting access to your assets (and perhaps requiring the permission of a trust officer)?  What if you would like to support your grandchildren’s education needs – does your will and current asset allocations support charitable and legacy planning during your remaining lifetime, or only at end of life?

Financial planning should be inspiring … and when husband and wife are moving in lockstep toward a “shared vision of the future”, life becomes more fulfilling and well-lived.  So make sure that you and your spouse are working as a team on your financial plan!

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© 2014, Michael J. Briglia, CFP®, MBA, ChFC®

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