Reader question: My spouse has little interest in our financial position. As we age, this concerns me. I try to share some basic information (income, spending, account balances, debt, and so on) each month but rarely get a response. I think graphs or charts might be of more interest to her than a bunch of numbers. What recommendations would you have for illustrating our financial position so that I am not the only person aware of how we are situated? Thanks!
Answer: Your situation is quite common. Many couples develop a division of labour over time, where one person manages finances while the other remains less involved. This arrangement can work for years but becomes less sustainable with age, especially if the primary financial manager becomes ill or passes away.
Using Charts and Graphs
Visual tools like charts and graphs can help engage a financially disengaged spouse. Morningstar's Portfolio X-Ray tool offers various images to illustrate your financial situation. Major brokerage websites also include visual tools; for example, Schwab provides a Portfolio Checkup and a bar graph showing monthly dividend and interest income, while Vanguard offers a Portfolio Watch tool with performance illustrations and calculators.
Mind Maps for a Holistic View
A mind map can encapsulate your entire financial picture on one page. Start with your names at the centre, then draw spokes to categories like family members, investment accounts, real estate, insurance policies, estate plans, goals, and contact information for professionals. Review and update the mind map together at least annually.
Other Communication Strategies
Create a net worth statement listing cash, taxable accounts, real estate, retirement accounts, and debt for each spouse and jointly. Update it yearly and discuss as a couple. Include columns for account numbers, purposes, required minimum distributions, and tax issues.
Consider assembling a binder—sometimes called a 'Doomsday Book'—with information on where to find important documents, insurance policies, bill payment details, account purposes, steps for the surviving spouse, final wishes, and other critical data.
Engaging a Financial Adviser
A qualified financial adviser can help involve your spouse in financial matters and manage investments if you predecease them. Look for a Certified Financial Planner with reasonable fees. While 1% of assets under management is common, some advisers charge less, including hourly rates.
