Losing one’s spouse is devastating. The grief and emotional loss are challenging enough without widows contending with uncertain financial futures. Laura Kuntz, CPA/PFS, MBT, Senior Wealth Manager shares, “We serve many clients who have lost their spouse, and my heart goes out to them. I cannot imagine losing my husband, though, of course, this can happen to anyone.”
As cloudy as a surviving spouse’s outlook may be, pursuing long-term financial stability can be helpful in recovery. It can provide a sound foundation that gives widows more room to process the massive life change. Here are a few considerations and actions widows can take to build a sustainable financial plan.
Take Stock of Your Finances
The first step widows should take is to review their current financial situation. This includes income sources, debts, and monthly expenses. It also includes investment and retirement accounts, insurance payouts, real estate holdings, and any other properties and accounts.
Hopefully, your spouse left behind a comprehensive will or trust, as well as other estate documentation. As soon as practical, you should contact your bank or financial institution to update account ownership and beneficiaries. You might also look into typical survivor benefits, including Social Security assistance, pensions, and life insurance. Laura mentions, “In many situations—though not all—we see a trusted child or friend helping our clients with some of the logistics. We are also here to support implementing the right next steps.”
Don’t feel pressured into making sweeping financial decisions; in fact, you should avoid doing so for at least the first few months. When you’re ready to move forward, consult with a financial advisor to determine the best path.
Separate Immediate and Long-Term Expenses
Especially in the early months after a spouse’s death, widows should focus on pursuing financial consistency. Recurring bills still need to be paid, including mortgages, insurance premiums, and utilities.
You’ll likely have one-time expenses like final medical bills and funeral costs. Again, a financial advisor can help you structure these expenses so they’re easier to manage.
Once those most pressing items are dealt with, think about how much of your monthly expenses may have to change. This is especially important if you’ve lost a significant portion of income or pension payments.
You may consider downsizing your residential space or budget. These are serious and necessary concerns, so even if you can’t make decisions immediately, keep them in mind. “You can likely make any adjustments you need to make over time,” adds Laura. “You are going through a very large and painful transition. Taking things step by step, and giving yourself the mental and physical room to rest, is really important.”
Make a New Plan
Now that your living situation has changed, it’s time to think about new long-term financial objectives. Your retirement plans may need to be reevaluated and adjusted to reflect your current income and goals. If you’re already taking distributions from a retirement account, you might want to look into new withdrawal strategies.
Pay attention to your tax situation. New widows may face significant changes in filing status, required minimum distributions (RMDs), and itemized deductions. You’ll also want to review your estate documents (your will, beneficiary list, healthcare directives, and more) as well as your life, health, and long-term care insurance policies. “This is where a trusted financial advisor can really help,” explains Laura. “They can help you determine what needs to be done now and what can wait. They can help you coordinate with your attorney and CPA as appropriate to help lift the burden on you. They’ve probably had a lot of experience in settling estates and help simplify the process.”
Remember What Matters
Grief and mourning don’t follow prescribed paths. Some days may be okay. Others may be very difficult. Remember to be as easy on yourself as you can. You don’t have to make drastic financial decisions until you’re emotionally ready. An errant decision made in haste while emotions are still raw can complicate your situation.
Don’t be reluctant to rely on your friends, family, and support network to get through these times. A true financial advisor looks at more than just the numbers, they consider the position you’re in and can offer compassionate advice for moving ahead.
Dependable, Kind Financial Resources for Widows
The death of a spouse is devastating, whatever the circumstances. But when it happens, you don’t have to face the future without help. The Laurel Wealth Planning team can steer you through the early months of recovery with a solid plan, investment strategies, and ideas for adjusting to your new reality. Learn more about Laura’s approach to supporting widows here.
To schedule a complimentary meeting, email laurel.wealthplanning@laurelwealthplanning.com, call (952) 854-6250, or contact us online. Find out if our team is the financial advisor you need in difficult times.
The foregoing content was prepared by Indigo Marketing Agency with verbiage, opinions and/or financial commentary input provided by Laurel Wealth Planning.
The foregoing content reflects the opinions of Laurel Wealth Planning LLC and is subject to change at any time without notice. Content provided herein has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets, or developments mentioned. The content is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results.
Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.
As a precautionary measure, we cannot rely on e-mail requests to authorize, direct, or affect the purchase or sale of any security, wire transfer, or to affect any other transactions. Such requests, orders, or other instructions sent via email should be confirmed verbally or by written instructions faxed to 952-854-6250 prior to their anticipated execution. We are unable to ensure that emails sent to you from us, or sent from you to us, will be received. Please contact us at 952-854-6250 if there is any change in your financial situation, needs, goals, or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions. Additionally, we recommend that you compare any account reports from Laurel Wealth Planning LLC with the account statements from your custodian. Please notify us if you do not receive statements from your custodian on at least a quarterly basis. Our current disclosure brochures, Form ADV Part 2 and Form ADV Part 3, are available upon request and on our website, www.laurelwealthplanning.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.
Laurel Wealth Planning LLC (LWP) is an Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply any level of skill or training. LWP is a wealth management firm and does not practice law or accountancy. The information and material contained in this communication are confidential and intended for the recipient addressee named. If you are not the intended recipient, please delete the message and notify the sender immediately. The foregoing content was prepared by Indigo Marketing Agency with verbiage, opinions and/or financial commentary input provided by Laurel Wealth Planning.
Laura, the founder of LWP, is a Senior Wealth Manager, Chief Investment Officer and Shareholder. She has a master’s degree in tax and is an excellent listener. While she is a sophisticated financial planner with experience in complex issues, her priority is ensuring a financial plan works for people.
