Real Answers for Life’s Money Challenges
My husband became obsessed with the stock market during quarantine.
His company stopped its 401(k) match in March, so he stopped contributing.
He also stopped making his Roth IRA contribution, which he used to max out.
Instead, hes putting all that money into his Robinhood account and hes always trading on the app.
Since Im not working, I cant contribute to a retirement account of my own.
I dont know much about the stock market and I have zero interest.
Some of his friends are equally obsessed with Robinhood.
Im alarmed because Ive heard them joke about the risky bets theyve made.
He hasnt taken money out of retirement accounts or our savings.
Is it OK that hes stopped contributing to his 401(k) so he can trade stocks?
How do I ask him what hes actually investing in?
Im worried that hes gambling money that we need for our retirement.
-K.
Dear K.,
Maybe your husband does know more about the stock market than you do.
But it sounds like youre the smarter investor.
kindly dont buy in.
Those returns simply arent sustainable.
Historically, stocks deliver average annual returns of about 10% before you account for inflation.
Investments in401(k) plansskew conservative, so youd expect slightly lower returns.
You dont build wealth through huge short-term stock market fluctuations.
You build it by consistently investing and staying put over the long haul.
Your concern implies that, unlike your husband, you grasp that.
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Youre not earning a paycheck right now, but youre very much working.
Youve put your career on pause and taken on the difficult work ofgetting your family through the pandemic.
But has your husband sacrificed?
It doesnt sound like it.
Instead, hes turning your couch into a casino.
This is not a partnership.
You obviously know that its time for a long-overdue talk with your husband about his decisions.
And while Im being hard on him, Id suggest taking a different approach.
Its a 100% legitimate concern.
I just dont think it will start a productive dialogue.
Its harder for him to get defensive if youre simply seeking to understand where your family finances stand.
If he resists having an open conversation, consider it a huge red flag.
Dont let yourself get sucked into an argument about the returns hes gotten.
Those returns are unattainable in the long run.
One thing Id insist on here is that he prioritizeyourretirement as well.
The regularIRA contribution limitsof $6,000 if youre under 50 or $7,000 if youre 50 or older apply.
If he chooses totrade stockson Robinhood, he can bet to his hearts content.
Dont let him sway you with his stock market expertise.
Your future is at stake.
Personally, Id trust you to manage my money over your husband any day.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
Send your tricky money questions to[email protected].
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