Keep your stocks and bonds separate, at least for now. Why?

Mar.02, 2008 in Market Outlook

“It would be wonderful if both sides could merge their assets and mindsets into one greater goal” at the outset, “but learning monetary habits takes time,” says Barbara Steinmetz, a financial adviser in San Mateo, Calif.

Here’s what Steinmetz suggests: Keep your stocks and bonds separate, at least for now. Instead, create a new investment account that Steinmetz calls your “Us” portfolio. It’s a pursuit you both work on together, and its growth potential matches your hopes as a couple.

You’ll each need to agree to fund this commingled portfolio at a certain time, say monthly or quarterly, she adds. Though one of you undoubtedly earns more money than the other, it’s fairer if you both commit the same amount.

Investment decisions, too, are best made jointly, but typically one person is keener about finances than the other. In that

case, to keep confidence high and confusion to a minimum, don’t get fancy or footloose with how you earmark this cash.

“You want something that’s going to give you a chance without being too far out on the risk curve, so you can both see together that it’s working,” Steinmetz says. “If you see you’ve got more money in a year-and-a-half than you have today, it’ll encourage you to continue.”

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