On Money & More – February 2022

February is a month where we celebrate many things. President’s Day comes to mind, and with it a long weekend. Super Bowl Sunday should be a national holiday. And, of course, there’s Valentine’s Day. This month, let’s talk about love. And finance. Okay, words that don’t often go together. But seriously, how should couples view money?

Ever wonder what the #1 cause of divorce in America is? Surprisingly, it’s not whether the flap on the toilet paper roll should be in the front or the back. It is actually “basic incompatibility.” And right behind that comes “infidelity.” But, right behind that, in 3rd place is “money issues.”

That’s right, money problems. Of course, struggling with debt can put stress on your life in many ways. But, what if your money problems are not debt-related, but instead are actually problems with communication? Each of us approaches money differently. We may have been taught about it differently as children. Some might be intimidated by financial decisions. Or, perhaps, you are a couple with vastly different views about financial risk?

As advisors, we typically see money treated as a division of labor. It is common for one partner to take the lead on all-things financial. This might be expedient, but it could create problems down the road. For example, if money gets tight, the financial decision maker might carry all the stress of meeting the monthly budget. Spending by the other partner could seem unnecessary and contributing even more to the problem. What about later in life? If the spouse with the financial “controls” were to pass away, the remaining partner is left to make essential decisions that they are ill-equipped to handle.

While we are not relationship counselors, our advice would be to communicate! Dave Ramsey says, “Marriage is a partnership, and couples can’t win with money unless they budget as a team.” If money discussions are difficult to breach, or the path forward is just unclear, a financial advisor may be able to help. After all, most advisors meet with clients at least annually. These meetings may cover everything from your budget to your goals, to the long-term projections of your investment portfolio. Conversations could extend to your estate and your financial legacy.

As you build the relationship with your advisor, you then have another base of knowledge that can help to transition any setbacks or surprises on your path. These might include hardships like an unexpected home expense, a health care event, or death. Or, even better, perhaps how to handle a surprising financial windfall! An advisor can be an advocate to navigate each of these events, providing consistency along the way.

The Beatles famously wrote, “I don’t care too much for money, cause money can’t buy me love.” We agree! Just don’t let money get in the way of it, either.

All opinions and data included in this commentary are as of January 11, 2022 and are subject to change without notice. The opinions and views expressed herein are of Cutler Investment Counsel, LLC and are not intended to be a forecast of future events, a guarantee of future results or individual investment advice. Nothing herein should be construed as tax advice. This article is provided for informational purposes only and should not be considered a recommendation or solicitation to purchase or sell securities. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Investing involves risk, including the potential loss of principle. Neither Cutler Investment Counsel, LLC nor its information providers are responsible for any damages or losses arising from any use of this information.