Guiding You Through Change: Financial Planning for Widows
By Lauren Smith, MBA, CFP®
Financial planning for widows empowers them to comprehend their financial circumstances, make wise decisions and build a better tomorrow.
As a CERTIFIED FINANCIAL PLANNER™ professional at Green Financial Group, I’ve worked with many widowed clients in need of decisive yet supportive financial planning guidance. Understanding their financial situation, especially if they’ve been uninvolved in managing their family finances in the past, is crucial for them to gain quickly as they begin to embrace their new normal.
Although it can be an emotional job, I find immense fulfillment in professional financial planning guidance for widows at a time in their life when they’re feeling vulnerable. If you or a loved one have recently lost a spouse, here are a few things to keep in mind based on my experience as a financial advisor.
Your Financial Picture
The emotional cost of losing a partner can be enormous, and the financial consequences can be just as overwhelming. I get that.
I also know that recognizing your financial situation is a critical first step to taking back control and moving forward with confidence. Without a clear understanding of where you stand, managing your finances is like trying to navigate a maze while wearing a blindfold. It’s nearly impossible to budget for retirement, medical needs or even daily costs if you don’t know what your sources of income, debts and spending patterns are.
My suggestion is to take the time needed to compile paperwork, examine spending and evaluate your entire financial situation. With your newfound knowledge, you will be better equipped to prioritize your needs, make wise decisions and create a customized financial plan that takes into account your particular situation and your hopes for the future.
Your Lifestyle Expenses
Your new reality requires a fresh financial perspective. Understanding your lifestyle expenses is a critical component of adjusting to your new life.
By taking a good look at your spending habits and separating essential expenses (e.g., housing, utilities and groceries) from non-essential expenses (e.g., travel, entertainment), you can identify areas that need to change. You can then create a realistic budget that both aligns with your current income and also allows for your essential needs to be met.
Additionally, being aware of your lifestyle expenses allows you to make wise decisions moving forward. You are better equipped to decide if you need to downsize your living space, find additional income sources or potentially adjust your retirement goals. Remember, the big-picture goal is to build a financial future that reflects your evolving needs.
Your Financial Benefits
Another essential component of adjusting to your new normal is knowing what financial support you’re owed. This could greatly affect your finances moving forward.
You could receive a much-needed cash boost from Social Security survivor payments, tax breaks, healthcare assistance, pensions from your deceased spouse’s employer or potentially even life insurance payouts. Knowing whether or not you’re entitled to these types of benefits can allow you to plan for your future with more confidence, less stress and increased financial stability.
Your Financial Longevity
Another key part of financial planning for widows I want to discuss is financial longevity. Financial longevity is the ability to maintain your desired lifestyle well into your retirement years. As life expectancy continues to rise (and it tends to be longer for us as women), financial longevity has become a double-edged sword for widows.
On one hand, you could face a longer retirement period than you had previously planned. That means your savings will need to stretch further. Rising healthcare costs could throw another wrench into the situation.
On the other hand, extended life expectancy provides more potential opportunities. By living longer, you could gain more time for investment growth. Plus, you could potentially delay your Social Security benefits, resulting in a larger payout.
Either way, building your long-term financial plan should be a priority.
Seek Professional Guidance
Financial planning for widows is vitally important, but it can be a complex and emotional process. To help you navigate these challenges, our team at Green Financial Group, particularly those of us who focus on working with women, can provide the professional guidance you need.
To schedule a complimentary 15-minute financial or retirement consultation with me, please call (713) 244-3030.
Please Note: Any opinions are those of Lauren Smith and not necessarily those of Concurrent Investment Advisors, LLC. Concurrent Investment Advisors, LLC and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.