Together In Retirement, Just Not The Preparation

Together In Retirement, Just Not The Preparation

While couples focus on where to retire and how they will spend life after the workforce, research indicates they are not equally engaged on guiding the financial aspects. The 2013 Fidelity Investments Couples Retirement Study indicated only 43 percent of couples report jointly making investment decisions for retirement.

Nearly half (45 percent) indicated this reflects their current day-to-day financial decision-making. This information did not suggest disconnect between the couples; 92 percent agreed they communicate well, and eight in 10 agreed they are one financial entity.

Even with one partner happily at the helm, it is important for couples to both be comfortable with their financial plans. The one area of concern for the couples was only 28 percent expressed complete confidence regarding either partner’s preparedness to assume responsibility of their joint retirement finances, if necessary.

A couples meeting with a financial advisor should never be viewed as a check-up on the partner leading the finances, or a lack of trust, but simply the opportunity to raise awareness of the financial outlook. This meeting presents an opportunity for the advisor to discuss financial matters either partner may have questions about. Topics covered might include expected retirement lifestyle, education funding, savings progress or a portfolio review.

At a time of grief and uncertainty, this can provide a sense of relief to the surviving spouse if he or she has not been the primary decision maker. Schedule a time with a financial advisor to review your joint retirement goals and financial plans for 2014.

FINANCIAL FACTS

For The Year – The S&P 500 was positive on a total return basis for 10 of 12 months in calendar year 2013, gaining 32.4 percent for the year. The stock index has been positive on a total return basis in 10 of the past 11 years (2003-2013). The one down year that occurred since 2003 was a 37 percent tumble in 2008. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock's weight in the index proportionate to its market value (source: BTN Research).

From The March 2009 Low – Since dropping to a bear market low on March 9, 2009, (i.e., approximately 58 months ago), the S&P 500 stock index has gained 202.8 percent (total return) through the close of trading for on Dec. 31, 2013, or an average gain of 1.9 percent per month (source: BTN Research). 

Only One Direction To Go – The top-performing stock in the S&P 500 in 2012 (based upon a 188 percent gain for the year) was ranked no. 400 (out of 500 stocks) in 2013 while gaining 12 percent (source: BTN Research).