Insights

Know your spouse’s investments; it’s your right

March 2, 2015 . Noorain Mohammed Nadim

The following article is a part of FundsIndia’s ‘Women Worthy’ series – a series of blog posts to commemorate International Women’s Day.

fi_spouse_newDo you share your investment details with your spouse? Does your spouse share investment details with you? If your answer to any of these questions is ‘no’, then you might just be brewing yourself a financial storm.

In many Indian households, saving is a common practice. But keeping the spouse informed of all saving and investment decisions is highly uncommon. While you may assume that you are doing your part by saving for your family and goals, what you don’t realize is that all your investments might be worth nothing if you don’t keep your family informed of the same. If anything unfortunate happens to you or your spouse, it is extremely difficult, if not impossible, to find all the investment details and rightfully claim them. Having a vague idea on investments will not help. You need to have the full investment picture.

Here’s what you need to know:

1. Is your spouse insured? If yes, what is the coverage amount?
2. What are the different investment products in which investments have been made?
3. Details of loans (if any)

If you are a joint account holder with your spouse in any of the above, then claiming the investment at a later date is a hassle-free process. If not, then the claim process can become highly tedious. To avoid such a scenario, it is best to add your spouse as a nominee in your investments and other financial products. It is even better if you can make joint investments with them as you both will work together to invest for your goals.

It’s never too late to share your investment details with your partner. Take a step now to ensure that your hard-earned money reaches them at a time when they most need it.

Here are some simple ways to get started:

1. Chart a spending plan together every month – That way, your spouse would know how your money is being invested (for investments), or deducted (for loans).

2. Invest together – According to a 2014 report by UBS Wealth Management Americas, couples are more satisfied and confident when they take on money responsibilities together. Investing together means that you and your spouse are on the same page when it comes to your goals, and there is complete transparency involved. Moreover, it can be a whole lot of fun too! If your spouse is new to the world of investing, you could start saving money in liquid funds for short-term goals like buying a mobile phone, or a piece of jewellery. When you do this, your spouse gets acquainted to the healthy habit of investing, and then, it would be easier for you to “break the investment ice” with them.

3. Make your spouse a nominee for your investments and keep him / her informed of the same.

Remember, precaution averts peril. Share your investment details with your spouse. It is their right to know too.

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