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Should a wife have her own financial adviser?

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Maya Fisher-French
Maya Fisher-French

Last week, I spoke at a Women’s Day event held by Alexander Forbes about the importance of women, especially married women, having their financial affairs in order.

The most interesting part was speaking to the many women who shared their personal stories with me after the event.

Stories of husbands dying suddenly or walking out after four decades of marriage and leaving their wives with no idea of where or how the family finances operated; stories of husbands who had early onset dementia and wives who were worried about the management of their finances.

What surprised me during all these discussions was how disempowered many of the women were.

In many cases, it was a matter of just allowing their husbands to manage everything because it was easier that way.

But what I also discovered was that, although the couple had an adviser, the principle client was the husband and the adviser would often not share information without the approval of the client, namely the husband.

One woman told me how her husband had Alzheimer’s. Because the disease was still in its early stages, her husband had many lucid days, but he could also become irrational. She was concerned about decisions he may make on those more irrational days.

There are many cases of wills being changed or people being scammed out of money as a result of unscrupulous individuals who prey on those whose minds are starting to wander.

Whenever she speaks to their adviser, however, he asks her husband what he wants to do and will only act on his approval, despite knowing his mental state.

What she really needs is an adviser who can help her form a strategy on how to cope as her husband’s mind starts slipping.

She needs to fully understand the legal implications of her status as a spouse, including the fact that a living annuity does not carry the same protection for financial dependants as a pension or provident fund.

She needs to understand that a simple power of attorney will not suffice as it in effect falls away once her husband loses his capacity to reason and that she needs to consider an administrative order.

Basically, she needs someone who has her best interests at heart and who can advise her accordingly.

Should a couple have separate financial advisers?

Personally, the first prize would be a financial adviser who acts on behalf of both spouses; someone who understands the importance of providing a financial plan that allows the spouse who is not the main breadwinner to also have control over the assets, and have an equal say in how they are invested – an adviser who encourages the wife to be involved and take an active interest in the family’s wealth creation.

If, however, a wife finds that her husband or the adviser ignore or treat her in a condescending manner, she certainly should have her own adviser.

Just because you are not the main breadwinner does not mean you do not have an equal right to manage the family finances, and it should definitely not be an excuse to leave everything to one’s partner.

If you are wondering if it is time to get a financial adviser, take advantage of the Financial Planning Week campaign, which starts on September 5 and runs to September 9.

The initiative, headed by the Financial Planning Institute, provides industry-certified professionals, and practices will be offering free consultations and financial literacy workshops to consumers, allowing them to take control of their finances and invest in their financial future.

One can easily schedule an appointment with one of the participating professionals and financial planning practices, where a number of financial planning topics will be covered, including financial wellness, basic financial planning, financial literacy, retirement and investment planning, free consultations and business structure.

Visit the Financial Planning Week website at fpi.co.za, email riana@fpi.co.za or call 011 470 6000 to find a list of participating financial planners and practices in your area throughout the week.

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