Comments on: How to Get Your Wife to Invest

By: Steve

Steve — Wed, 18 Nov 2009 00:08:34 +0000

Who said I am not doing well? My portfolio is doing great. I got into cash before the crash and have made decent returns this year. I think stocks are the best way to go if you are willing to study. I am not a day trader, but I am not afraid to sell or to hold.

I like your idea about putting some money together and doing some investing together. Great learning experience and some good quality time.

Thanks for the advice!

By: FinanciallySmart

FinanciallySmart — Tue, 17 Nov 2009 23:30:10 +0000

Since he is not doing well himself I think both of them need to educate themselves in what interest they both would do as a combine investor. So what they can do is put some money together and invest it they can look at it as if it was a combined bank account. When this is successful then she will be less conservative with her investment.

By: Steve

Steve — Mon, 09 Nov 2009 16:26:13 +0000

Great advice and comments guys. I am glad David’s readers are so eager to help.

This article actually caused a fight between Vicki and I, because she thought it made her sound stupid. Fortunately, the discussion that followed brought out the fact that I was more concerned about finding way to invest conservatively and get the highest reward possible.

I have a basic knowledge of CDs and money markets, but my portfolio is pretty agressive which I am okay with, but would never try to push her towards.

So what I was looking at was possibly layering CDs or something like that so she is making a little money but would have money available if needed.

By: partgypsy

partgypsy — Fri, 06 Nov 2009 00:30:09 +0000

Disagree with the “adjust accordingly” advice, such as investing in yet more aggressive instruments to counter her playing “too conservative”. Is it possible she is investing very conservatively because she feels the husband is being too risky with their money ?(I know at least 1 couple like that). A discussion needs to be in order, possibly with a fee-based financial advisor, about what their shared goals are, and how to reach those goals together. She may then realize that she needs bigger returns to reach those goals. In turn the advisor may suggest that the risk/return ratio for the husband is out of whack (generally more than 80% in equities doesn’t increase return but does increase risk).

By: marci

marci — Thu, 05 Nov 2009 18:51:22 +0000

I’m surprised that no one has mentioned to just listen to her and maybe understand that your agressive way is too much stress/risk for her to be comfortable with…. Why is his way necessarily better?
One should only invest where/what they are comfortable with.

There is no magic that says that one way is “better” than the other. Both are saving. I’d say mention CD’s and government bonds and tax-free muni’s to her – but otherwise, if she wants to stay out of such a volitile market – leave her alone…. maybe even join her

My “safe” investments made money last year, while all around me people were devastated about how much they lost.

To each his/her own After all it’s NOT about how much money you are making – it’s about how SAFE your investments are, and how they WILL be there for you when you retire It’s a security blanket – peace of mind

By: MoneyNing

MoneyNing — Thu, 05 Nov 2009 18:08:01 +0000

Great idea. While reading investment magazines might not be her interests, you can direct her to short articles every once in a while so she learns bit by bit.

By: kenyantykoon

kenyantykoon — Thu, 05 Nov 2009 17:10:49 +0000

You must also remember not to try too hard to change her because its really not possible. If she doesn’t agree with your philosophies, accept her as she is and try to look for other ways around this really big problem instead of trying to bend each other to the others’ will. Sitting down and setting well laid financial goals and discussing how to get to them will help you guys make a plan on how to get to them with both conservative and aggressive investing.

By: LeanLifeCoach

LeanLifeCoach — Thu, 05 Nov 2009 16:58:26 +0000

First you should feel very lucky that you are married to a woman who cares and wants to be involved. Everyone has a different view on risk and reward. Keep this in mind and then consider what it took you to open up to other and more risky investing ideas. It is all about awareness and understanding, education is the key.

If your wife is willing to read about it, buy her books, send her blog posts, share articles and finance magazines. Otherwise, spend quality time together, sign up for a finance class at a community college.

By: Rick

Rick — Thu, 05 Nov 2009 15:35:06 +0000

I agree with Miranda education is the key. I suspect your wife does not realize the consequences of saving at such a low interest rate. If you share that information with her she will thank you for it, and you both will be richer for it!

I suspect she believes that a percent or two differences doesn’t seem like it would be a big deal, and not worth taking any risks. Over a few years it is a trivial difference but it is a huge difference in the long run.

Show her the Compounding Different Interest rates graph- once she realizes how much a few percent will cost her in the long run she will at least find a reasonable CD. She may even be willing to consider taking a small amount to invest in stocks or bonds.

-Rick Francis

By: Mark Wolfinger

Mark Wolfinger — Thu, 05 Nov 2009 15:06:35 +0000

I would suggest that Steve begin by inches. Move from those ‘nothing return’ investments to bank CDs. Surely thsoe are safe enough for even the most conservative investor.

Maybe after seeing that a small return means something, she will realize that investing for growth is worthwhile.