Asking for Help

Question: My husband passed away last year, and he handled all our financial affairs, including a meaningful inheritance from my parents. I’m overwhelmed and don’t know where to start. Can you help?

Answer: First, my deepest condolences on your losses. Thinking of handling your life and your future going forward can be intimidating, unnerving and even a bit frightening. The emotional and administrative complexities do not have to be discouraging when you ask for help.

Did you know that roughly 80% of women outlive their husbands, according to the U.S. Census Bureau? Considering women are also expected to inherit $28.7 trillion in intergenerational wealth over the next 40 years, it seems likely that many married women may receive not one, but two inheritances in their lifetime – from their parents as well as their husbands.

Sudden wealth, especially resulting from a loss, can add a host of complicated feelings to an already difficult time. Fortunately, you don’t have to navigate the complexities alone. Whatever events your life may have in store, a trusted team of professionals including your CERTIFIED FINANCIAL PLANNER™ Professional can help you factor in practicalities and prepare for what lies ahead.

In 98% of households, women have a proactive role in their household’s finances according to RBC Wealth Management and are joint or sole family banking decision-makers, while 84% take joint or full responsibility for family investments. Still, receiving an inheritance from a spouse could mean that for the first time some women must make financial decisions all on their own. Watching my grandma and mom face these transitions in their lives is why I became a CFP® Practitioner because they had such a difficult time finding proper guidance. 

The first place to start in making sure there are no gaps in your long-term wealth strategy is to look at cash flow needs and sources of liquidity. Being proactive may mitigate some of the stress you could experience while putting together your plan. This is also the time to make sure the details in your estate planning documents are up to date, particularly your beneficiaries.

No sudden movements

There are several factors to keep in mind as you go about incorporating your current circumstances into your life and financial plan. For starters, don’t rush to make any decisions. Loss and changes in financial position comes with strong emotions but can trigger requests for loans from friends or family, and a flood of unsolicited advice from the well-intentioned. You may even find yourself with an intense urge to give or spend it all at once. 

Rather than immediately going down any of those avenues, set a holding period for yourself of six to twelve months before you decide what is next and feels right for you. Take this time to think about what’s most important to you and how your new assets might support those goals, whether they involve your career, your family, or your community. If you don’t have one already, get a team of professionals in place, including an estate attorney and CPA, as they can work in accord with you and your CFP® Practitioner to help ensure all your wealth and life management details are addressed.

As you think about your goals, don’t forget to consider your longevity and life-expectancy as you update your financial plan. Not only do women generally live longer than men, but people are leading longer lives in general. 

Beyond planning for your longevity, your professional advisors can help you manage the other nuances of managing your financial affairs as well. For example, while some liquidity can be useful, too much idle cash can be vulnerable to depreciation instead of being thoughtfully invested. Your advisor and CPA can work together to implement tax-efficient strategies to help preserve your wealth for you and your family.

Whatever life or wealth events might come up, don’t forget that in this situation and countless others, your advisor can serve as a knowledgeable sounding board as you explore your options and prioritize goals. You’re not alone. It’s okay to ask for help and make sure you understand your investments; know what you own and why you own it. Stay focused and plan accordingly. 

The opinions expressed are those of the writer as of February 20, 2022, but not necessarily those of Raymond James and Associates, and subject to change at any time. All investments are subject to risk, including loss. Diversification does not ensure a profit or protect against a loss in a declining market. This material is provided for educational purposes only. Past performance is no guarantee of future results. There is no assurance the trends mentioned will continue or that forecasts discussed will be realized. Material is provided for informational purposes only. Raymond James and its advisors do not offer tax or legal advice. Consult your tax professional and financial advisor before making any investment decisions. Raymond James is not affiliated with RBC Wealth Management.

“Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.” This article was provided by Darcie Guerin, CFP®, First Vice President, Investments & Branch Manager of Raymond James & Associates, Inc. Member New York Stock Exchange/SIPC 606 Bald Eagle Drive Suite 401, Marco Island, Florida 34145. She may be reached at (239)389-1041, email darcie.guerin@raymondjames.com Website: www.raymondjames.com/Darcie.