Valentine’s Day is the third-largest consumer holiday in the U.S., with about 19 Billion dollars spent in Cupid’s name each year. It’s big business for florists and chocolatiers, with over 4 Billion dollars spent per year on flowers and candy alone.
Flowers and candy are great, don’t get me wrong. But as a gift for your treasured partner, they’re not the most impactful. They don’t last long and once given, they are soon forgotten. This Valentine’s Day, how about giving your spouse a gift that will really last: the gift of knowing how to continue managing the financial tasks one of you has been handling.
When too much delegating is counterproductive
It’s common for married couples to divide up duties and responsibilities. For example, one spouse may do most of the “inside chores” like laundry and vacuuming, while the other spouse may handle a lot of the “outside chores” like maintaining the landscape. When it comes to managing the finances, couples often divide things up as well. One spouse may pay the bills while the other handles the investments, taxes or insurance.
Dividing up duties is smart. Its efficient and it allows spouses to delegate things their partner may have more aptitude or interest in. The downside is that the delegating spouse may become disengaged from that activity. It’s a problem when a spouse becomes so disengaged that he or she doesn’t know what’s going on. When the duty is maintaining the lawn, it’s OK to not know what brand of fertilizer is being used. But when it’s paying the bills or managing the investments, not being involved can be dangerous. Especially if the spouse you’ve been delegating to dies or becomes unable to continue doing that task.
FAQS
We’re happy to answer any questions you have about our firm and our processes. Here are answers to some of the questions we receive most frequently.
How you can bring your spouse in the loop
Organize the bill paying
Create a summary of all the bills to be paid over a full year. Indicate how each is paid, and when each is due. For bills paid online, provide the website and password information. For bills paid by check, provide the mailing address or other key info needed for paying the bill.
Also, don’t forget the money needed to pay the bills. Make sure you have access to the checking account. For bills paid by check, access to the physical checks and the power to sign checks yourself.
Summarize the investments
Create a summary of all the investment and retirement accounts, including account numbers and the titling of each account. Password info for accessing the accounts online. If you use a financial advisor to manage investments for you, schedule a meeting for both of you to talk about the portfolio and any key considerations for managing the investments, such as required distributions or scheduled distributions from the accounts to your checking account.
Clarify the taxes
Show your spouse last year’s tax return, and the quarterly payment coupons for the current year. Explain the tax situation: Was a big payment due last April, or was there a big refund? Are the tax withholding’s from paychecks or retirement distributions up to date?
Inventory the Insurance and estate
Make sure your spouse understands the estate plan. What is supposed to happen at the death of one of you? What about if one of you was incapacitated? Make sure your spouse knows where copies of key documents are, such as powers of attorney, health care directives, wills, trust. Creating a list of the contacts for your estate, insurance and financial advisors is very helpful as well.
GUIDES
The Essential Guide to Retirement Planning
A 4-part series that answers key questions about building your plan, positioning your investments, and more.
Why being in the loop means security
Knowledge is power, as they say. If your spouse knows what’s going on with the bills and finances, there will be less uncertainty, and more peace of mind. And this will bring security for your spouse. On a day when most give shallow gifts of sweets and florals, here is a chance to give a much deeper gift, and one that shows how much you care for your mate. And while you’re at it, why stop with giving this gift on one day of the year? You can update your spouse regularly on the financial tasks you oversee, providing even more up-to date information. Now there is a really loving gift.
At Blankinship & Foster, we help our clients simplify and organize their finances so they can have the clarity needed to make good financial decisions. Our proven process, “The B&F Way” brings financial planning and investment planning together so you can have confidence and direction in your future.
