Couples that invest together, stay together

Being on the same page about your goals for the future is a cornerstone in a solid marriage, say the relationship experts. Your views and values on religion, parenting and other hot topics should be discussed before you tie the knot – with the help of a counsellor – if you find yourselves knocking heads on them. But few people planning to share their lives consider that other big factor – their portfolios.

If you are settling down in your mid- to late thirties, it’s possible that you already have a solid investment or retirement plan in place. But what does it mean when you add a “plus one” to your future? As with all values, you bring differences to the party. Here are some questions you should be asking your fiancé/fiancée once you’ve decided to make a go of it:

What do you both bring to the partnership?
You both probably have assets, investments and hopefully a nest egg. More than likely you also have debt – that “trendy” car that cost you a bomb, a sweat-inducing student loan, or even a parent that you are supporting financially, perhaps. Lay it all out and come up with a plan together to deal with the debt, without losing traction on the positive savings you may have made in your individual capacities. Hint: it starts with working on a joint monthly budget, which will quickly put your financial status into perspective.

What’s your appetite for risk?
We bring our own fears and insecurities with us into a partnership. Issues around money can be fraught: for example, you may have different attitudes toward risk. Perhaps your parents lost a lot of money on risky investments, which has made you very cautious. Or, you’ve been inspired by a relative who took big risks that paid off. Working with a financial planner to help you decide when is the time for you to be cautious, and when to be bold, will help you strike the balance – a diversified portfolio will keep you both calm and focused.

When do you want to retire?
Does one of you dream of closing up shop and spending your fifties on a farm in the Karoo? Or are you an entrepreneur that plans on building a family business that will keep you busy deep into your golden years? Deciding on your ideal age for retirement will help you determine how aggressively you need to invest to achieve this goal. But, keep in mind that life throws up many surprises and you will likely have to adjust your portfolio numerous times in your journey together. Triplets? Illness? Who knows what’s around the corner. But keeping an eye on your long-term goals is the best way to achieve them.

What about the now?
Long-term goals are of course essential, but what are your immediate needs and wants? Do you want to save for a blow-out wedding, a down payment on your first home, or a chunk of cash to start a business? By pooling your resources into a portfolio of unit trusts you will be able to make your money work harder for you and reach those goals a lot sooner than you may think. Plus, unit trusts give you the flexibility you need to draw on them when you need them, which some of your investments which require more time to mature, like your retirement fund, may not give you.

Prudential offers a range of unit trusts that are designed to help you save for that special purchase, or earn more toward your long-term retirement savings. You can use our Goal Calculator to determine how much you need to contribute monthly to meet your goals. For more information, contact your financial adviser or our Client Services Team on 0860 105 775 or at info@prudential.co.za