BETTER HALVES: BUILDING WEALTH TOGETHER

CASE STUDY 5

Client Profile

Client: Married couples, income earners (either or both), individual and couple goals

Situation:identify individual or couple goals with the help of investment expert, creating a safety net(priority), budgeting as a couple.

We are aware that saving money is important, but it is not the entire story. Those who are smart or more specifically smart investors, start by gathering and building sufficient emergency funds. Planning and investing for goals such as child’s education, elderly care, emergencies and retirement, everything features in their priority list. But this can be very taxing if one has to do it on their own, as this requires immense experience and investing a considerable amount of time in research before an individual (or a couple) starts allocating funds as per their goals.

Investing is an effective tool to put your money to work and potentially build wealth and this becomes easier if you have an expert to guide you through the entire process. Needless to say, as working couples you are already hard-pressed for time, which is required for planning a well-structured investment strategy, therefore it would be wise to seek help of an experienced and knowledgeable person who knows the tactics of minimizing the risks to generate wealth over a long term.

When it comes to couples, it is very important for the personal finance planner to understand their individual goals as well as the couple goals. It is achieved through a series of meetings because effective communication lays the foundation of financial planning. We always appreciate and encourage the married couples who come to us with an objective of starting investment as a team because this is very healthy. Investing together means growing together.

Investing money as a couple is fundamentally distinct from engaging in leisurely activities like walking, working out, vacationing, or watching movies together. While these activities are vital for bonding and relaxation, investment demands a meticulous and disciplined approach focused on future security. Couples must understand that they are two distinct individuals with both joint and individual aspirations, and balancing these in a financial plan can be quite intricate.

This is where our experts excel. With their extensive knowledge and expertise, they will meticulously evaluate your cash flow and strategically allocate your budget to harmonize both your individual and joint goals. Our professionals will manage your portfolios with precision, ensuring that you feel confident and gratified about your financial future. At the risk of sounding repetitive, we would like to mention that once we have onboarded you, you are part of our Investaffairs family

This won’t be an exaggeration if we describe our financial experts as your “Financial Confidant” as they are the best listeners who do not mind even when you are talking about something that is very inane or mundane, something totally unrelated to your investment. It is obviously very convenient for our team to showcase their expertise, but our focus is mainly on understanding our clients. What matters most to us is companionship and a bond of lifetime. A healthy relationship with our clients translates into a dedicated long term portfolio management, which in turn substantiates the motto- “if you grow, we grow”.

It is crucial to emphasize that a financial plan encompasses not only recommended actions but also necessary avoidances. Initially, a couple must establish a budget to clearly understand their respective contributions toward achieving their goals. This process involves a thorough analysis of their income and expenditure. Various factors are considered, including the nature of their employment, whether salaried or self-employed. Following this, a budget is devised by a personal finance manager. Our Relationship Manager (RM) will evaluate their financial habits, discuss their objectives, and assess their investment strategies. Married couples should disclose plans such as purchasing a car or home to their experts for effective planning. Additionally, experts will address retirement planning, tailoring a plan if one does not already exist, and presenting it to the clients.

Our experts, given their knowledge and expertise, will be able to recommend the right funds and allocate your assets to align with your long-term goals. Our team always puts their best in helping our clients with preparing and protecting their investments. For the uninitiated the personal finance planner does thorough research and analyses to assess the risk profile as this is a very important determinant in goal mapping. Further, it is worth mentioning here that primarily two rules will impact the long-term goals. The technicalities of these rules can be discussed with our team at Investaffairs if you wish. One of the rules is the rule of 8-4-3 which helps in compounding your corpus. To give our readers a fair idea, in the beginning the invested amount doubles within 8 years through an annual average return of 12%, then another doubling happens after another 4 years. Eventually, the benefits of compounding will come to fore within 15 years as its value doubles again after 3 more years.

Another rule that applies to allocation of funds (although not a very hard and fast rule), is called the 50-30-20 rule. This recommends putting 50% of your money towards needs, 30% towards wants, and 20% towards savings. The savings category also includes money you will need to realize your future goals. While individual goals are relevant to you and your needs, it is the joint goals that impact you and your partner in the long run. Hence, in order to sum up this article we would like to reiterate a few points.

INVESTING TIPS FOR MARRIED COUPLES:

• Talk about your retirement goals together.
• Understand your investment options (as individuals and as couples)
• Update your beneficiaries/ nominees.
• Buy life insurance for self and loved ones.
• Create a will.
• List out an extensive individual and common goals.
• With the guidance of your financial expert establish a joint investment budget.
• Discuss your money habits with your RMs. Learn to respect different money habits.

CONCLUSION: Effective financial planning and investment are essential for a stable future. While saving is important, wise investing helps build long-term wealth. Seeking guidance from experienced professionals can streamline the process and minimize risks, especially for busy working couples who may not have the time or expertise to navigate the complexities of investing. Professional guidance can minimize risks, particularly for busy working couples. Investing together strengthens relationships and aligns financial goals. Understanding investment principles and working with experts for personalized planning is crucial. A comprehensive financial plan includes budgeting, goal setting, and risk assessment to recommend suitable investments for long-term objectives.

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