PERSONALISED INVESTMENT MANAGERS

Keeping your Spouse Informed of your Investments

25 November, 2022


          
            Keeping your Spouse Informed of your Investments

"Never ask a woman her age OR a man his salary!" – It’s a peculiar yet practical saying in India. Especially when it comes to money, the majority of Indian wives are unaware of their husband’s income or savings. At times I have also come across clients asking me “Should I talk about money with my wife? Should I involve her, is it necessary?” I suspect they are worried that if the finances are known to the wife there are chances that she will persuade him to deviate from the financial plan and goal in pursuit of something else.


There are three types of scenarios, so we need to understand this well.

  • A wife who does not want to be involved in all these matters.
  • A wife who wants to know everything, but the husband is not ready to share.
  • The ideal situation is where both mutually know everything

1.The first scenario is where a wife does not want to be involved in all these matters. From the woman’s perspective, it may be tempting for her to take a backseat and let the husband take care of everything. But, both of them should know what is happening at all times. Just because she is good at planning the events, the kids and the holidays and he is good at finances, drudge work and gardening you may think it’s okay to divide and conquer. But you still need both to be informed.

We should not forget that most of the Indian housewives are good at budgeting the household expenses. Thus, it is better when she is involved in your finances as well. Taking her to the portfolio review meetings with your financial advisor is the best way to start with and to bring her into the knowledge fold.


2.The second scenario is where a wife wants to know everything, but the husband is not ready to share. There are wives who are spendthrifts, or too frugal, or give money surreptitiously to their family members and this prompts the husband not to share the information on finances to her. Some clients have their own logical rationales on keeping their family informed.

  1. They will ask for more money to spend instead of buying into my investment decision for them
  2. They will assume that I am spending on myself and not giving to them
  3. It’s better that no one knows how much I earn, especially the kids as we don’t want them to think that there is a back up to not achieving anything on their own

Some people get over this last bump by telling their kids the importance of saving, investing, etc. and this maybe a great thing Read More.

Although the husband does not want to share any information, it is ultimately meant for the family. And hence at least you should maintain all your financial details in one place and let your family be aware of that document so that they can access it wherever required/ let them know whom to contact in case of any eventuality (financial advisor/relationship managers etc).


3.The best scenario is when both husband and wife mutually know everything.

But always remember Life is uncertain, Death is not. Let’s begin with baby steps before it’s too late. As the hard-earned money is for your family and loved ones isn’t it important that your spouse know? As a MUST DO we suggest you create a one sheeter which details all your investments and relevant information pertaining to them. We have given an example of this here. after you. And if the spouse and the kids are the beneficiaries to your wealth, it’s probably better to involve them right now.


What do they need to know?

Particulars Key Information
Insurance policies Policy document
Bank A/c A/c number, Passbook
Fixed Deposit FDR Number
Mutual fund Folio number, Registered mail ID & Mobile no
Equity Shares Demat & Trading A/c Number
PPF, EPF, NPS A/c number, UAN/PRAN
Real Estate Registration papers, Khata number etc
Any business commitments, partnerships? Descriptive details
Any hand loan to friends/family? Descriptive details
Any Outstanding Loans? Loan Papers
Any Litigations? Lawyer's Contact Number

Most IMP: Key contact person who knows about the above details like your financial advisor or respective relationship managers.




Fast and reliable asset / wealth transfer in your absence to use as required by your benefactors is the biggest pro for sharing your strategies/execution to Protect and Nurture your wealth

Mimi Partha Sarathy
Managing Director,
Sinhasi Consultants Pvt. Ltd.

Other reasons for sharing this information are to make clear to them the way to access your investments in your absence. If this plan is done with the family, it allows them to use it when needed.


Best Practices to follow


Conclusion:

All your earnings and investments are for the family members and sooner or later it will be transmitted to them after you. The bitter truth is death does not come with a prior notice. It is always wise to keep your family informed about your finances, to access and use the money whenever needed, even when you are no longer around.


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