Losing a spouse is undoubtedly one of the most emotionally challenging experiences a person can face. The journey of grief is complex, and during this difficult time, managing your finances may not be at the forefront of your mind. However, as a retired individual, it's crucial to consider the financial aspects that come with such a loss. In this blog, we'll explore important steps and considerations to help you navigate the financial aspects of losing a spouse from our perspective as a financial advisor.

Prioritize Knowledge and Communication

Before delving into the specifics of managing finances after the loss of a spouse, it's essential to stress the importance of open communication and understanding your financial situation. Both partners should be well-informed about their combined income, assets, and bills. This shared knowledge can ease the transition when one partner is no longer there to manage the finances.

Maintain Clear Records and Access Steps

A critical step in securing your financial stability after losing a spouse is to maintain clear records of your financial accounts. This includes account numbers, locations, login credentials, and instructions on how to access them. Having these details readily available can save you and your loved ones a significant amount of stress during an already emotional time.

Be sure to include information about your emergency fund, checking and savings accounts, investments, insurance policies, and any other financial assets. It can also be helpful to list key names and contact information for any regular service providers, insurance agents, financial managers, etc.

Understand Your Investments and Insurance Policies

When it comes to understanding your investments, you should have an idea of their value and how they operate. Early withdrawal fees, holding periods, interest rates, dividends — when you understand how your investments work, you’ll have more confidence in accessing the funds at the appropriate time.

The same goes for insurance policies — knowing what's covered and what's not is key. Covering funeral expenses may be your priority, will a life insurance policy cover the bill? Dealing with insurance isn’t exactly fun, so it can be easy to purchase a policy with the best of intentions but then seemingly forget about its purpose until you need it.

Consider End-of-Life Care and Decisions

Thinking about end-of-life care and decisions might be uncomfortable, but it's essential to address these topics. Discuss burial and funeral preferences with your spouse, and consider pre-planning arrangements to alleviate stress on your loved ones. Additionally, make sure your will and estate planning documents are up-to-date and accurately reflect your wishes.

Seek Professional Guidance

In times of loss, seeking professional guidance from financial advisors, CPAs, estate planners, and attorneys is highly recommended. These experts can provide you with valuable insights tailored to your unique situation. A financial advisor can help you create a financial plan that aligns with your new circumstances and long-term goals.

Losing a spouse is an emotionally challenging experience that can bring significant changes to your life, including your financial situation. By doing a bit of homework ahead of time, you can reduce stress when unfortunate circumstances arise. If you lose a spouse, we can take a bit of the load off your shoulders and help you prioritize what needs to be addressed and what can wait — we’re here to provide empathic support. Whether you’re looking to prepare a plan or need assistance, know that you can reach out to us at Integrated Wealth Management.

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About Integrated Wealth Management

Integrated Wealth Management is owned by Burt Hutchinson, CPA, CFP®. We’re a CPA-led organization, meaning we’re here to handle your complex tax scenarios and provide cost-saving insight related to your financial plan.

We’re here to guide you through the 3 stages of retirement:

Uncertainty Stage: When you are within 10 years of retirement and have questions about how to make it work
Stability Stage: When you have reached the financial milestone to retire comfortably and confidently
Reflection Stage: When you are looking to leave a legacy

We are also here to provide experienced, empathetic support during times of loss, such as the death of a life partner. You need confidence and a sense of security to enjoy retirement. As fiduciaries with a fee-only structure, we never receive commissions. Free of ulterior motives, you can be sure we’re focused on your goals.

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Disclosure Statement:

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax, or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, Past performance is not a guarantee of future results.