Ask Paula - How to Convince a Spouse to Invest in Low-fee Index Funds?

#112: How can I convince my spouse to invest in low-fee index funds? How should my fiancé and I combine our finances? If I'd like to invest in rental properties, should I also buy stocks?

Former financial planner Joe Saul-Sehy joins me to tackle these audience questions and more.

Thomas asks:
My wife is suspicious of Vanguard. She questions how they could stay in business while charging low fees -- isn't there a catch?

She's also reluctant about investing the majority of our money in a broad-market index fund like VTSAX. She'd prefer more diversification.

Recently, we met with a major brokerage firm that charges a 1.75 percent management fee. How can I get my wife to see the detrimental effects of choosing this high-fee broker?

Shy asks:
My fiancé and I are getting married soon. We both live with our families at the moment; we'll form a new household after our wedding.

Neither of us has ever lived independently before. How should we budget for this, given that we're not sure what expenses to expect?

Also, any tips on how to commingle finances?

Paris asks:
I'd like to invest in rental properties. Should I still make stock market investments? Should I contribute to a 401k?

Kristin asks:
I've been DIY'ing my household's finances and taxes. So far, our situation has been simple.

However, in a few years, my husband is going to retire. When this happens, we'd like to sell our home, perhaps invest in rental properties, and move either out-of-state or out-of-country.

Our financial and tax situation is about to become a lot more complicated.

I'd like to talk to a financial professional ... but whom should I choose? Should I hire a financial coach? a financial planner? an accountant? an investment advisor? someone else?

We tackle these four questions on today's show. Enjoy!

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Resources Mentioned:

Thomas:
Calculator - How do expenses impact fund returns?
https://www.calcxml.com/do/inv12

Article - How a 1% fee could cost $590,000 in retirement savings
https://www.nerdwallet.com/blog/investing/millennial-retirement-fees-one-percent-half-million-savings-impact/

Article - The Impact of Investment Costs
https://investor.vanguard.com/investing/how-to-invest/impact-of-costs

Shy:
Article - The Anti-Budget
http://affordanything.com/2013/03/05/anti-budget-or-80-20-budge/

Article - Three Methods for Co-Mingling a Couple's Finances
https://www.thebalance.com/three-methods-for-co-mingling-a-couple-s-finances-453849

Kristin:
FINRA Broker Check website
CFP.net
Guidevine (website)
XY Planning Network