Financial Confidence as a Widow
How to build financial stability as a single woman (before you find yourself alone)
One of the greatest vulnerabilities that women face is the lack of financial stability. This can be the result of a lack of knowledge, not simply the lack of assets. After all, “knowledge is power,” so whether you are widowed or still happily married, now is the time to empower yourself by learning the specifics of your family’s financial situation.
When we find our partner, our intention is to remain together for life: that’s “Plan A.” However, life too often requires us to move to Plan B or even Plan C. For example, according to the US Census Bureau, the average age that women become widows in the US is 59.
Paradoxically, the stronger the marital relationship, the more complacency that typically exists about a lack of knowledge concerning family financial details. It is still all too common for the female partner to leave the financial details to her spouse. However, it is extremely important that all women become involved in the financial aspects of their household. Knowing the details of your family finances is imperative in case--or when—you suddenly find yourself alone. This is true for women of all socioeconomic levels.
If it sounds like I feel strongly about all this, it’s because I learned my lessons the hard way. After 30 years of marriage, my intended partner for life was diagnosed with an incurable, degenerative muscle disease. As a professional, I thought I had our financial life buttoned up. However, I too, had a lot to learn about some business investments we hold as a family, including the location of these assets as well as other extremely important details: where to locate important information, including capital requirements and tax forms. Thankfully, I have time left with my spouse to figure it all out.
How can you prepare for the worst, while you hope for the best? Make sure you have completed and can locate the following:
Your Estate Plan (If you do not understand the implications of your Plan, NOW is the time to meet with your attorney to learn.)
All asset locations and online log-in information. This includes brokerage accounts, everyday savings, and checking, as well as policies for home, auto, and life insurance. If your assets are managed professionally, make sure you are involved in the relationship with your wealth manager; don't leave it all to your spouse.
Private investments: online logins and contact information.
Paying the bills: A thorough understanding of how bills are received and what is set on auto-pay vs other payment methods. Do bills come by mail, electronically, or to your spouse’s email address?
Understand your family’s operating budget. What were your fixed and variable expenses last year? These expenses indicate the amount of cushion or size of the “safety net” that should be held in a readily accessible, high-interest savings account.
Once you have empowered yourself with the financial details for your family, you are better prepared to face what life tosses your way. If you, a friend, or a family member has faced widowhood, you are familiar with the shock and paralysis that accompany the loss. It would help if you had a safe buffer of time where no major decisions should be made. Prepare now, while you can.
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