MW I'm 67. My wife, 48, is financially illiterate. How do I teach her to manage our money? After all, I won't be around forever.

By Quentin Fottrell

'We have a 12-year-old daughter. I have $1.1 million in a traditional IRA and $250,000 in cash.'

Your current allocation is moderately aggressive given your age; less so, given that your wife is still in her 40s. (Photo subjects are models)

Dear Quentin,

I'm a 67-year-old male and married. We have a 12-year-old daughter. I have houses paid for and $1.1 million in a traditional IRA and $250,000 in cash. One home is an Airbnb and the other is our residence. My wife is financially illiterate. She's 20 years younger than me. I do all of our investments and business payments. She works part time.

I have set up a trust, but I'm scared for her if I should pass. How do others handle situations like this?

Husband & Father

Related: I'm about to inherit a lot of money. How do I make sure my husband doesn't get any of it?

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

Your current allocation is moderately aggressive given your age; less so, given that your wife is still in her 40s.

Dear Husband,

We were all financially illiterate at one point in our lives, and hopefully we are always learning.

The takeaway from your letter is that your wife will not learn about investment if you make all decisions unilaterally - why you invest in a mutual fund or 401(k), for example, and how that fits into your overall investment plan - unless you take her on that journey with you. It's not a one-and-done session with a financial adviser as much as a process that can take weeks, months, even years.

The world of finance can be intimidating (and sometimes, purposely obtuse) and, yes, people can also hand over too much knowledge and power to an adviser or wealth manager. While it's smart to enlist the assistance of a financial professional who can help you with tax-advantaged plans (like a 529 college plan for your daughter), it's important to know how and why decisions are made.

Change starts with you as much as your wife - that is, thinking of her as "financially illiterate" will not help either of you in your quest to brush up on myriad financial products. Sites like MarketWatch and columns like The Moneyist aim to democratize financial news, inform readers about markets and the economy, and illustrate strategies so people like your wife feel empowered and have agency over their own future.

Diversification and risk tolerance are two early concepts worth becoming acquainted with. Some folks do take higher risks and invest in individual stocks - like this fellow who invested in Nvidia or this couple who invested in Palantir - but you hear less about the people who lost their shirts. You can start with the broader picture: How much you have invested in equities versus bonds versus cash, and how that often changes with age.

Speaking of which, you have 20% of your portfolio in cash, which is probably no bad thing given your respective ages (48 and 67), and you can explain to your wife that you are planning for her retirement as well as your own, why you move more of your investments toward safer havens as you age, and how money can make money for you in retirement through the miracle of compounding.

Age-related allocations

Your current allocation is moderately aggressive given your age; less so, given that your wife is still in her 40s. To split the difference between your ages, U.S. Bank suggests an asset allocation in your 50s of 60% stocks and 40% bonds. (I assume you have your cash in CDs and/or high-interest savings accounts.) "Now is also the time to start thinking about boosting your retirement-fund contributions and to your 401(k) or IRA," the bank says.

"Your late 50s may be a good time to prepare for retirement, which could leave you with extra cash to invest," it adds. "Even though compound interest won't benefit you as much in your 50s as it would have earlier in your life, it's still important to make your money work as hard as possible as you approach retirement. The money you save by downsizing could go toward 401(k) or IRA catch-up contributions, your HSA or ... your brokerage account."

You have enough leeway and cash and, given that you have a 12-year-old daughter, you are playing a slightly riskier long game as a couple. Your equity allocation should also be diversified.

You could even both enroll in personal-finance and investing workshops and/or webcasts. Charles Schwab $(SCHW)$ is one of the many institutions that offer the latter. You can also listen to Barron's Live; the latest episode deals with the fall investment outlook: "Stocks are sliding, bond yields are rising, gold is soaring, and questions are swirling about the future of President Trump's tariff strategy and the makeup of the Federal Reserve."

Your and your wife's goal - as she should be included in these conversations from here on in - should be close to a 10% annual return over time, accounting for ups and downs in the market during your lifetimes. The S&P 500 SPX fell 18% in 2022, gained 26% in 2023, rose another 25% in 2024, and historical data show that over the last century, bear markets have accounted for just over 20% of those years. So the long-term momentum points upward.

At times of economic turmoil, analysts recommend healthcare, utilities and consumer-staples stocks for the medium and long term, in addition to mid- and small-cap equities, bonds, cash and non-U.S. equities. If your wife has questions about the latest economic data, you can caution her against trying to time the market. Consumer confidence and market sentiment are choppy these days, with job-market concerns adding to the woes.

What happens after you die? Your wife, all going well, will make regular withdrawals, up to 4% of your portfolio every year, under the guidance of her financial adviser. In the meantime, how did you learn about financial literacy and the markets? Therein lies your answer.

Related: My mother, 81, discovered her 'millions' in investments are gone. What can I do?

Previous columns by Quentin Fottrell:

My friend, 61, signed a $20K contract for dental implants. She can't afford it. Can she fight it?

My mom, 93, added my name to her bank and retirement accounts. Will she qualify for Medicaid?

My friend married for a second time. Will the kids from her first marriage lose their inheritance?

Check out the Moneyist private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.

By emailing your questions to the Moneyist or posting your dilemmas on the Moneyist Facebook group, you agree to have them published anonymously on MarketWatch.

By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

-Quentin Fottrell

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

September 16, 2025 08:09 ET (12:09 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.