Women should consider whole investment picture

I’m about to get married. Should I adjust the asset allocation in my 401(k) to take my husband’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 his 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 husband why you’ve chosen to invest as you have; you may have a perspective he’s overlooked or information he 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.

Barbara Kenerson is First Vice President/Investments at Janney Montgomery Scott LLC and can be reached at BarbaraKenerson.com