Quora Answer: What Should We Do, if My Wife & I are at Opposite Ends of the Investing Spectrum?

The following is my answer to a Quora question: “My wife and I are at opposite ends of the investing spectrum.  She would be content putting money in a mattress (CDs), whereas I am content with a high-risk portfolio.  What is a good investment strategy for our situation?”

If I may suggest, break up the funds into three groups.  The first is for low-risk assets, with a long investment horizon; the second is for intermediate risk, with a preferably high liquidity; and the last would be for riskier assets.  Discuss the weightage between yourselves, and your financial advisor.

In any case, a balanced portfolio cannot have all its funds in CDs, or high-risk derivatives.  It needs to be spread out across asset classes, economic sectors and geographic regions.  It needs to contend with two or more investment horizons depending on your needs, and it needs to have some liquidity for a portion of it.