You can live for the thrill of investing and enjoy watching your money grow in your portfolio. You can also weather any downturn in the stock markets with resilience, knowing that the decline must rise. However, what do you do when your spouse is less interested or even afraid of investing in the stock market? Depending on your partner’s personality, there are several ways you can convince your spouse to invest in stocks.
Talk about the inflation rate
The stock market can be intimidating to many people. Some would prefer to simply put their money in a savings account because they are confident that they will not lose money as they would on the stock market. They won’t see the money disappear from the account, but they will lose money to inflation.
Possibly do a scenario with your spouse. Let’s say you put $ 40,000 in the bank in 1990. If you hadn’t touched it by 2020, you’d still have $ 40,000 in the bank, no more, no less (plus the negligible amount of interest you may have earned). They actually lost money because in 1990 the purchasing power of $ 40,000 was $ 40,000. To have the same purchasing power today as it was in 1990 for $ 40,000, you need $ 79,296!
Diversify your portfolio
Depending on your age and skill level, just investing in stocks may not be the smartest step. If your spouse is nervous about investing in the stock market, make sure your portfolio is diverse. Sure, you have a few individual stocks to invest in, but also safer assets like bonds and mutual funds or even real estate.
Meet with a financial planner
If the idea of investing is a delicate one for your spouse, it may be better not to talk. Instead, meet with a neutral party like a financial advisor. A financial advisor can tell your partner about the risks and opportunities of investing in stocks.
Your partner may feel more secure trusting an experienced financial planner to invest in stocks than when you make the investment. If you are most interested in investing in stocks to add to your portfolio, this may be the best way to go.
Play stock games
Your spouse might be worried about investing in stocks just because he or she doesn’t know much about the process. To make your spouse feel more comfortable, consider playing stock games. There are at least five online sites that you can practice on invest in the stock market with a fake portfolio.
You could invest in each one and gain more experience. This will also help your spouse understand the risks and rewards of investing.
Investing in the stock market can be intimidating, especially if you’re investing a lot of money or investing in your retirement. The best thing you can do is be patient with your spouse. Then use some of these strategies to convince your spouse to invest in stocks and become more comfortable with the investment process.
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