Interestingly, spouses with very different—even opposite—investment personalities may quite easily develop an investment program that’s just right for the couple. Yet, in some cases, partners who view investing the same way may need to proceed with caution.
APPROACHES FOR DIFFERING VIEWS
Take the case of a conservative investor and an aggressive investor who share a non-registered account to save for retirement. With their advisor’s guidance, they allocate equities and fixed-income investments to strike a compromise between each spouse’s risk tolerance. The conservative investor benefits from potential market opportunities and the more aggressive investor is restrained from placing retirement savings at undue risk.
If one or both spouses aren’t comfortable with compromising, it can still work out—simply by investing independently. Say that one spouse invests conservatively in their Registered Retirement Savings Plan (RRSP) and the other focuses on more aggressive RRSP investments. As a couple, their approaches can balance out, combining wealth preservation with long-term growth potential.
WHEN THE SAME VIEW CALLS FOR CAUTION
An ideal situation is when spouses have a similar investment approach, with risk tolerances that are not extreme. However, if both spouses are highly aggressive investors, they should recognize they may need to temper their approach in light of the couple’s investment objectives and time horizon. If both spouses are ultra-conservative investors, the couple must understand they likely have to save and invest more to meet their financial goals.
Talk to us if risk tolerance ever becomes an issue between you and your spouse, and we’ll develop a resolution that suits you both.
This material was prepared for and published on behalf of your financial advisor and is intended only for clients resident in the jurisdiction(s) where their representative is registered.
This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing
individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with
applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember
that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness.
All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management or its dealer subsidiaries Assante Capital Management Ltd. and
Assante Financial Management Ltd., nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever
in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. Assante Capital Management Ltd. is a member of
the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association
of Canada and the MFDA Investor Protection Corporation (excluding Quebec). © 2022 CI Assante Wealth Management. All rights reserved.