8 Tips to Align Your Risk Tolerance With Your Spouse's

It's OK to agree to disagree on how to invest your assets. Here's how to make it work.

It's not uncommon for spouses to differ on investment approaches, strategies, and risk tolerance. These eight tips from Cathleen Ringo, Regions Vice President and Wealth Advisor in Charlotte, North Carolina, can help you mitigate any strain these differences play in your marriage.

• Understand that your respective risk tolerance levels are useful but should not necessarily drive all investment decisions that affect you both.  Don't be afraid to ask questions!  Read here for questions you can be ready to ask of your financial advisor.
• Focus on shared long-term goals. From there, your financial advisor can help you calculate how much money you'll probably need to achieve them and the investment strategy or strategies that are historically likely to yield the amount required to meet those goals.
• Make clear to your financial advisor if you and your spouse have different risk tolerances.
• Don't let your or your spouse's preferred strategy dominate the conversation or tactics used to invest. If you are investing money together, you both need to be comfortable with your decisions.  Read here for how to work with your spouse if your investment styles differ.
• Consider a small side account if you or your spouse still yearns to be more aggressive after reviewing projections with your advisor. But remember: even your separate investments should support your shared long-term financial goals, and you both need to agree that the amount in the small side account will not hurt these goals or create resentment if the more aggressive approach results in a total loss.
• Together, review your goals and investment portfolio regularly (annually at the minimum) and adjust as needed.
• Try to take a businesslike approach to investment planning, even though it's difficult to separate emotions from money.
• When it comes to money matters, use empathy to maintain marital accord. Seek to understand where your spouse's attitudes about spending and saving come from, and consider each other's comfort zone when allocating assets.

Gain more insights on aligning your risk tolerance and investment style with your spouse’s.