Arguing over stock-market losses can tank your relationship. How to stay afloat.

By Brian Page

First it was FOMO: fear of missing out. Now it's FOWO: fear of wiping out

With the major U.S. stock-market decline cutting into American families' investment portfolio and retirement accounts, couples should take care not to let fear overshadow their household. But it'll take some work for you and your partner to keep the financial market's volatility from becoming a source of relationship volatility.

That said, it's normal to fear what is happening in the stock market now, and we need to acknowledge that, to ourselves and our partners. It's important in these adverse situations to feel heard and supported.

Just be aware of the difference between fear and danger. While danger is something that's real and present, fear is often anticipatory, stemming from what might happen.

No one has a crystal ball. What if U.S. President Donald Trump could reverse the tariffs, and the stock market soars? What if other countries hit the U.S. with their own tariffs and dump U.S. Treasurys? What if the U.S. dollar (DX00) loses its status as the world's reserve currency? Who knows?

As for danger, those invested appropriately will have protection. Make sure your portfolio is well- diversified, with assets allocated based on your risk tolerance and time horizon. The danger lies in what could happen if U.S. tariffs trigger a U.S. recession. The chances of job losses and lower wages then are real, and that is the danger your portfolio allocation can cushion against .

'Money dates'

Making time to talk with your partner is the first step. Schedule a "money date" - an uninterrupted time when the two of you can plan for the future. During your beginning money dates, establish your common financial goals and a budget, automatic savings strategies, bill-paying responsibilities, and retirement contributions. Nowadays, though, leave space to discuss your fears and dangers. Make these regular meetings, regardless of whether the market is humming along or turbulent.

Many investors who exit the stock market in fear do not return, potentially missing out on crucial recovery gains.

Couples also need to learn to manage the emotions the stock market ignites. While the headlines may seem alarming, reacting impulsively by selling off investments during downturns can lead to significant regrets.

For example, research indicates that 31% of investors who exit the market in fear do not return, potentially missing out on crucial recovery gains and hindering their long-term financial goals.

Instead of succumbing to panic, couples should focus on adhering to a well-thought-out investment plan. Ideally crafted with professional guidance, this plan provides a clear path to follow regardless of market fluctuations. Consider working with a fee-only financial adviser who does not sell commission-based products, and is bound by fiduciary standards.

Safeguards and guard rails

Economists continue to increase the chance of a U.S. recession this year, spurred by the Trump administration's economic policies. Recessions mean job losses. Here are three tips to prepare:

1. Set immediate financial priorities: At a minimum, you should set aside three- to six months of expenses in a high-yield savings account for emergencies. Financial security should always be your top priority.

On a money date, dive into your budget to identify where you are happy to continue to spend money. Those are your spending priorities.

Then, become laser-focused on how you can cut spending. Pause luxury expenses, temporarily stop subscriptions, dine out less, and avoid non-essential shopping.

2. Sell what you don't need: Look around your home for items you no longer use or need. Maybe it's indoor gym equipment purchased during COVID-19 or a gaming system. Better to sell before a recession hits, when there'll be more competition from others doing the same.

3. Reduce bills where possible: Do you need several different streaming services? Call service providers for better deals or discounts on internet, cable, and insurance. If possible, refinance debts to lower interest rates and monthly payments. Root out the subscriptions you no longer need.

Above all, prioritize your relationship and live calmly by compartmentalizing the bad economic news from daily life. Panic save, don't panic sell. Make financial decisions when emotions are low so your awareness can be high. Consider consulting with a financial expert before making trading decisions.

And always move forward together as a couple. What is happening, or what could happen, isn't because of you or your partner. Tackle the world's challenges as a team.

Brian Page is the founder of Modern Husbands, where he shares ideas for couples to manage their money and their home.

More: Want to Trump-proof your portfolio? It's not too late.

Also read: These ETF strategies can help lower your investment risk as tariffs ramp up stock-market uncertainty

-Brian Page

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.

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04-04-25 0752ET