For some couples, talking about finances becomes taboo due to differences in money management styles and financial goals for the future. It turns out that financial disagreements between couples may reflect a fundamental difference in the way men and women approach money matters.

Data reveals the role gender may play during financial planning

Research commissioned by Ameriprise Financial reveals that men and women are planning for one of their biggest financial milestones – retirement – in very different ways. ¹ More than half of men surveyed report setting money aside in their own investments, but not nearly as many women say they’ve done the same (54% vs. 46%). Men are also more likely to have determined the amount of income they will need in retirement (31% vs. 20%).

While women may not be focusing as much on financial goals, they are more likely to report that they’ve thought about what they’d like to do when they retire. Women are significantly more likely than men to say they plan to spend more time with family (41% vs. 34%), and that proximity to family is a very important factor in determining where they will retire (40% vs. 27%).  They are also more likely to rate access to healthcare options and facilities as a very important factor (38% vs. 32%).

These differences in how men and women approach key financial decisions may be present for many other milestones as well, such as starting a family or buying a home. So how can you bridge the gap to approach your goals in a way that makes both you and your partner comfortable? The following tips may help guide you through these conversations.

Don’t avoid financial discussions.

Be available to your partner and communicate often – setting expectations ahead of time can minimize future disagreements. Keep in mind that it’s crucial to discuss financial matters to ensure your plans for the future are in sync – but be prepared to compromise. Also remember that financial planning isn’t just math – it can be an emotional process as well. Balance rational thinking from a financial standpoint with finding the right way to communicate your ideas and expectations as a part of family discussions.

Understand your differences.

The key here is to understand each others financial personality and approach to money, so you can tackle your financial needs and goals with mutual respect. It’s helpful to recognize your own financial strengths and weaknesses and those of your spouse or partner so you can have a rational conversation and find a common ground. By approaching your finances with an idea about how the other may view it, you will likely have a more productive conversation.

Keep both partners involved.

Your financial goals and priorities will likely evolve as you move through life, but make sure both partners are involved along with way. While it’s not a pleasant thought, there is a possibility that you or your spouse may be managing your finances alone at some point. It’s important that both partners remain equally involved in financial decision-making so in the event that one spouse is left to make these decisions alone, they can remain financially secure. This may also minimize conflict amongst other family members in the wake of a tragedy or sudden death.

Put it all in perspective.

While finances can create plenty of stress in relationships, it’s important to keep the big picture in mind. While you plan as a couple, consider important factors like your career goals, how you might support your children, and when and how you might retire.

Though talking about finances may never come naturally, plan some time with your spouse or partner this year to have an open financial dialogue and to share your vision of your future together.

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James Rex Naylor Jr, CFP® Professional, Financial Advisor, Ameriprise Financial, Inc., 21 South Wayne Street, Lewistown, PA  17044, 717.248.1577, www.ameripriseadvisors.com/james.r.naylor. Advisor is licensed/registered to do business with U.S. residents only in the states of AZ, CO, FL, ID, IN, MD, ME, MO, NC, PA, VA, WY.

¹ The New Retirement Mindscape 2011 City Pulse index was created by Ameriprise Financial utilizing survey responses from 11,611 U.S. adults ages 40-75. The survey was commissioned by Ameriprise Financial, Inc. and conducted online by Harris Interactive from August 4-12, 2011. The national average sample and the 30 U.S. metropolitan areas were each weighted independently to best represent each area. Propensity score weighting was also used to adjust for respondents’ likelihood to be online.   

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

© 2012 Ameriprise Financial, Inc. All rights reserved.

You may be focused on getting in shape for swimsuit season, but take a break from the gym this spring and spend some time on your financial fitness. Here are six tips to help get your investment portfolio into prime condition.

1. Shed the weight of extra accounts. It’s not unusual to acquire multiple retirement accounts over the years, especially if you’ve changed jobs several times. Consider consolidating them to simplify the management of your investments. If you have retirement assets with a former employer, it could be to your advantage to roll them over to your own IRA and achieve more control over how your money is invested. Consolidating accounts may also make it easier to monitor the performance of your investments and gives you the opportunity to ensure they’re properly allocated.

2. Bulk up your retirement savings. Have you given enough weight to what you’ll need in savings to retire comfortably? Are you taking full advantage of employer matching contributions and maxing out your IRA each year? In 2012, you have until April 17 to contribute $5,000 (or $6,000 if you’re over 50) to a traditional IRA. Sock away as much as you can to build your retirement nest egg.

3. Grow stronger. The fluctuating financial markets impact industries and individual investments differently, and often in ways that are difficult to predict. You can strengthen your portfolio by making sure your investment dollars are spread across a variety of investments. With diversified investments, your overall portfolio is not as likely to be derailed should one investment topple in value. Rather than trying to pick individual stocks and time the market, consider pacing yourself with systematic investments and think long-term.

4. Achieve the right balance. In light of the fickle nature of financial markets, even a well-balanced portfolio can look different than what you may have expected over time. Therefore, it’s wise to periodically assess the volatility of your investments across and within asset classes (stocks, bonds, and so forth) and rebalance your portfolio to achieve the desired asset allocation. A financial advisor can help you apply asset allocation strategies, and may have access to tools that will help you decide what may be a good match for your risk tolerance and goals – see tip #6.

5. Trim your waste. The Internet has made it easy to securely monitor your financial affairs while also helping to minimize paper waste. Question every printed piece you receive related to your portfolio. Is it absolutely essential to receive a paper statement? Do you really need to print that 100-page prospectus? Review the options provided by your financial institution and take advantage of their green initiatives if you’re comfortable managing your accounts online. With regard to your personal paper trail, keep in mind that your tax records and supporting documents should be maintained for seven years, while credit card statements can be tossed after a year. When disposing of documents, always use a shredder to keep your personal information safe from identity theft. Follow this advice, and your file cabinet will be slimmer in no time.

6. Enlist a personal trainer for your finances. Like many activities, managing investments is more fun—and potentially more productive—when you have a knowledgeable person by your side. A skilled financial advisor can guide you through simple exercises to help improve your investment fitness and cheer you on in pursuit of your financial dreams and goals. Together you can apply disciplined strategies designed to strengthen your investment portfolio and help you get in the best financial shape of your life.

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James Rex Naylor Jr, CFP® Professional, Financial Advisor, Ameriprise Financial, Inc., 21 South Wayne Street, Lewistown, PA  17044, 717.248.1577, www.ameripriseadvisors.com/james.r.naylor. Advisor is licensed/registered to do business with U.S. residents only in the states of AZ, CO, FL, ID, IN, MD, ME, MO, NC, PA, VA, WY.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

Ameriprise Financial does not provide tax or legal advice. Consult your tax advisor or attorney.

© 2012 Ameriprise Financial, Inc. All rights reserved.