Client Login
Contact Us
Call Us
Locations

I’m about to get married. Should I adjust my 401(k) asset allocation?

I’m about to get married. Should I adjust the asset allocation in my 401(k) to take my spouse’s investments into account?

That depends on several factors. Perhaps the first step is to make sure your existing asset allocation is appropriate for your circumstances; if you haven’t reviewed it in several years, you should probably take a fresh look at it, whether or not you intend to consider your spouse’s assets in your investing strategy. Assuming your allocation is appropriate for your current situation, you may want to make sure that any overlap between your accounts doesn’t create a portfolio that’s too heavily concentrated in a single position. For example, if you have received company stock as part of your compensation plan for many years, you might not have enough diversity in your portfolio; if both of you have worked at the same employer, the problem could be even worse.

However, you don’t necessarily need to make dramatic changes right away. No matter how compatible you might be, marriages have been known to fail, and sometimes they fail in a shorter time frame than anyone ever expected. If you do decide to make adjustments, remember that you can phase them in gradually to create an asset allocation strategy that includes both portfolios. For example, you might decide to simply allocate new money to a different investment or asset class rather than shift existing assets.

Explain to your spouse why you’ve chosen to invest as you have; you may have a perspective he or she has overlooked or information he or she hasn’t considered that could be helpful even if you manage your portfolios entirely independently. And since it’s your account, you have the final say. If there’s a difference in your investing philosophies, a neutral third party with some expertise and a dispassionate view of the situation may be able to help work through differences; that can be especially valuable in cases where substantial assets are at stake.

Related Post: Merging Your Money When You Marry

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019
IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Pension Payout Options

When you think of retirement, you probably envision the enjoyable ways you will spend your free time. But, you may also want to give some thought to receiving your funds…

Managing Bond Risks When Interest Rates Rise

After dropping the benchmark federal funds rate to a rock-bottom range of 0%–0.25% early in the pandemic, the Federal Open Market Committee has begun raising the rate toward more typical…

What is the Fed Taper?

What is the Fed Taper? An economist explains how the Federal Reserve withdraws stimulus from the economy Tapering refers to the Federal Reserve policy of unwinding the massive purchases of…

Data Privacy and Your Financial Planner

              Data Privacy and Your Financial Planner Data privacy week is January 24 – 28, 2022.  Here are some tips to help investors safeguard …

2022 Key Numbers

A popular tool, the 2022 Key Numbers document is a comprehensive list of tax bracket and deductions information to assist you as you consider your financial plan for the year. It…