Blogs & Comment

Keeping your spouse in the loop

Valentines Day is past but here is another thought to add to yesterday post about financial compatibility. Being alike in terms of financial goals and risk tolerances is great but communication is also important.
In The Little Book of Safe Money, Jason Zweig says: Men should make a special point of having their wives review any choices the husbands regard as a sure thing. That seems like good advice it could head off a lot of trouble (assuming the husband listens). It might take some of the fun out of investing but that’s what theatres and amusement parks are for. The best kind of investing is usually boring.
A few years ago, before the market crash, York University professor Moshe Milevsky came to the conclusion his personal exposure to stocks should be leveraged by 300% to offset the predominately bond-like nature of his personal wealth (tenured job and pension plan). Are you out of your mind? was his wife’s reaction. And so Mr. Milevsky went with a much lower level of leverage, which ended up being a good move ahead of the bear market of 2008.