Ask an Adviser: My partner is more cautious than me
December 9, 2024
We asked TelstraSuper Financial Planning Adviser Jeremy Lack: My partner and I are about to retire but she is much more conservative than me. Is there a way to manage our different risk profiles?
“As the saying goes, opposites attract. It’s not uncommon for couples to have different approaches to risk-taking in many aspects of their lives, including investing. My approach in these situations is to help couples find a balance that aligns with their shared goals, while respecting their individual comfort levels.
Once we understand a little more about your experience with risk, how you might react in a downturn, and your return expectations, the next step is to a have a conversation about the investment profiles options available and whether some trade-offs can be made. For example, a more conservative partner might benefit from moving away from a cash-only option to something moderately conservative, which can provide a bit more growth potential without taking on too much risk. For someone comfortable with higher risk, it might mean compromising on a 100% growth strategy and opting for a balanced approach instead.
Many couples end up finding common ground somewhere in the middle – such as adopting either a balanced, moderate or moderately conservative approach – that meets both partners’ comfort levels.
It’s also important to consider the lifestyle you both want to lead and how long your savings will need to last. Tolerance to investment market risk is just one part of the equation. You also need to factor in longevity risk and make sure your portfolio is designed to work for both of you not just today, but hopefully for a long future together.”
Once we understand a little more about your experience with risk, how you might react in a downturn, and your return expectations, the next step is to a have a conversation about the investment profiles options available and whether some trade-offs can be made. For example, a more conservative partner might benefit from moving away from a cash-only option to something moderately conservative, which can provide a bit more growth potential without taking on too much risk. For someone comfortable with higher risk, it might mean compromising on a 100% growth strategy and opting for a balanced approach instead.
Many couples end up finding common ground somewhere in the middle – such as adopting either a balanced, moderate or moderately conservative approach – that meets both partners’ comfort levels.
It’s also important to consider the lifestyle you both want to lead and how long your savings will need to last. Tolerance to investment market risk is just one part of the equation. You also need to factor in longevity risk and make sure your portfolio is designed to work for both of you not just today, but hopefully for a long future together.”
To discuss your long-term financial goals, you can book an appointment with a TelstraSuper Financial Adviser.
Past performance is not a reliable indicator of future performance. Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice, you should consider whether it is appropriate to your individual circumstances. Before making any decision, you should obtain and read the relevant Product Disclosure Statement and Target Market Determination or call us on 1300 033 166 for copies of these documents. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.