by Dana Dratch
Friday, May 9, 2008
If two heads are better than one, do couples have an advantage when it comes to investing?
The reality is that it’s difficult enough for two people to share a closet, much less money styles, financial priorities and investing strategies.
As a result, there are a number of couple-related investing errors that planners and attorneys see again and again.
Investing Mistakes Couples Make
1. Too Many Accounts
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With a lot of couples, investment accounts are spread over a number of banks, brokerage houses and financial institutions.
Result: “It’s a little out of control,” says Karen Altfest, vice president of New York-based L.J. Altfest & Co. “It’s too much for most people to handle.”
Andrew Tignanelli, CPA, CFP and president of Financial Consulate Inc., in Baltimore, sees this often when only one spouse is managing the investments. “What happens to your spouse if you’re not around, and you have money in seven or eight places?” he says.
When he poses that question to couples, either the light finally dawns or one spouse produces a notebook with directions on where all the money is located, he says.
Still, for a partner who is not used to dealing with investments, going on a financial scavenger hunt is going to be a hassle, says Tignanelli. A better alternative: Consolidate investment accounts in one location, he says.
2. One Spouse Deals With the Money Manager and Investment Advisers
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