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Americans Look to Themselves First for Financial Advice
Okay, you've entrusted your spouse or partner with your life and love. But when it comes to leaning on someone for financial advice, that's often a different story. In fact, nearly four out of 10 Americans listed themselves as the person they trust the most when it comes to making financial decisions, according to a recent survey for A.G. Edwards & Sons Inc. conducted by MarketTools Inc. Next most trusted were professional financial advisors (16%); a parent or grandparent (15%); and the respondent's spouse or partner (13%). Sophie Beckmann, a certified financial planner and certified public accountant with A.G. Edwards, says the fact that financial advisers rank higher than even spouses as trusted sources of financial advice is eye-opening. But there are a variety of reasons why the "love connection" doesn't always extend to money."People with financial advisors are used to going to them for advice and knowledge about investing; so even if spouses share financial decisions, their advisor still might be the most trusted consultant or information source," she says. Among youngpeople who have financial advisers, more trust their advisers as a source of financial acumen than they do themselves -- 41% to 31% -- while the spouse ranked even lower at 11%. "These findings also may reflect how hard it is for most of us to communicate with our partners about finances," Beckmann says. "We trust them, but there are a lot of things that can get in the way of good communication about money." It doesn't have to be that way. Beckmann offers a few tips to help couples communicate about finances: Get your goals straight, together. Recognize you may be different. This doesn't necessarily mean one of you is from Mars and the other from Venus. But you should understand that each of you may have a different tolerance for financial discussions. Try to accommodate each other's preferences when you discuss finances. Try a nice KISS. Some spouses prefer to leave most of the financial planning to their partner, but they also want to be kept informed -- a key element of building trust. But Keep It Simple Spouses: Provide brief, regular updates about investment performance and savings and checking accounts to ensure that you and your spouse have a common understanding of your current financial situation and your progress toward your long-term goals. Seek counseling. Just as with any other issues couples might face, having an expert, neutral third party to listen and provide advice typically is helpful. A professional financial consultant can take into account not only your financial goals but also your "Investment Personality" -- your personal preferences and comfort levels for such elements as risk, how long you plan on investing and so on. By recognizing each individual's Investment Personality, it will be easier to map out strategies that make the most sense for you and to identify how best to communicate with each other about finances. Don't rush it. Most financial conversations between couples take place during leisure time, especially on weekends, during dinner and before bed, the survey found. Jointly decide the times that work best for you and your spouse and make it a regular part of your routines during non-stressful times. Take it easy. If you're going to take leisure time to talk about finances, reduce the "work" aspect of the conversation by having it in a relaxing setting -- over a take-out meal, while lounging on the porch or maybe while walking the dog. Start early, stay flexible. The best time to figure out how to interact regarding finances is early in your relationship to avoid falling into patterns that don't please one or both of you. But realize that as time goes by, it may work better for your roles or the way you communicate about finances to change. Check in with each other every once in a while to see whether you need to update your financial routines.A.G. Edwards, Inc., is a financial services holding company whose primary subsidiary is the national investment firm of A.G. Edwards & Sons Inc.Visit A.G. Edwards Inc.: www.agedwards.com Source: ARA ContentThis article is new this week in The Business Journal's small business how-to section. To see what else is new, click here or click on the "how-to" tab at the top of The Daily Business Journal Online home page."