How do you know your partner is good with money if you aren’t?
In my 25+ years as a financial planner, I’ve seen people, often women, relinquish the job of managing money to their spouse. Of course, this isn’t always the case—some women are very interested in finances. But the ones who aren’t need to pay attention to their money regardless.
Giving up the duty of managing your finances because you aren’t interested could be one of the biggest mistakes of your life. Your partner, or whoever is managing your money, may not be as good at it as you think—and it’s always good to have a second set of eyes to ensure you’re on track to reach your goals and to avoid fraud.
Here is an example:
In April of 2000, after the tech bubble burst, Janice (not her real name), a woman in her mid-60s, sat down across from me in my financial planning office. Her husband handled their finances, and she wanted a second opinion on her retirement plan. She showed me a statement for December 31, 1999 and a statement for March 31, 2000.
Here’s what I remember from her statements: