Understanding Financial Advice for Widows: A Beginner’s Guide (part 2)

Welcome back for part two of my blog post about why financial advice is crucial for widows.

In part one, we unpacked why I think it’s a vital and helpful part of the journey through the new world of individual financial responsibility.

And I talked about what steps you should be looking to take now, and some of the areas you can look at to start getting help with.

In this post, I’m going to continue unpacking the various areas for you to consider.

Starting with the often unhappy topic of ‘debt’.

 

Managing Debt

Part of your inheritance, it must be said, might be debts. Perhaps it’s the continuation of the mortgage in joint names, or the loan on the car you want to keep, or that stubborn credit card balance that just won’t fall.

Regardless, part of your financial planning as a widow is probably going to be dealing with these debts.

As such, it’s important to understand the debts left behind and develop a plan to pay them off.

Here are some strategies for managing debt:

  1. Confirm The Debts You Have: I find just listing them all out really useful.Account number, the name of the lender, the name the loan is in, the current balance, opening balance, interest rate and repayments are all handy pieces of information to have.
  2. Work Out How You’re Going to Deal With Them: Work out how you’re going to pay the debts down.Are you going to sell assets connected to the loan? Are you going to ‘snowball’ it, or target the domino it?
  3. Consider Debt Consolidation: If you have multiple debts, consolidating them into a single loan with a lower interest rate can simplify your payments and reduce your overall interest costs. This can be a two-sided blade though, so get specialist advice before undertaking this step.
  4. Seek Professional Advice: A Financial Adviser can help you develop a debt repayment plan that fits your financial situation and goals.

Investing for the Future

Investing is an essential part of securing your financial future. It can help you grow your wealth and achieve your long-term financial goals.

Here are some tips for investing as a widow:

  1. Diversify Your Portfolio: Spread your investments across different asset classes, such as stocks, bonds, and real estate. This reduces risk and increases the potential for returns.
  2. Focus on Long-Term Goals: Invest with a long-term perspective, focusing on your financial goals rather than short-term market fluctuations.
  3. Work with a Financial Adviser: A Financial Adviser can help you develop an investment strategy that aligns with your risk tolerance and financial objectives.

 

Understanding Inheritance and Estate Planning

A particularly sensitive area for people in those first months and years after their loss is preparing for the impact of their own passing.

For some, this is an eminently sensible move. Life’s reminded you, in a very painful way, of it’s quite predictable outcome, so why not prepare for the inevitable?

But for others, it’s a cruel reminder of what’s happened and they’d like to put it off for a bit longer, thank you very much.

However, the unfortunate reality is that inheritance and estate planning are crucial aspects of financial planning for widows.

 

Here are some key considerations:

  1. Update Your Own Estate Plan: Review and update your own estate plan to ensure that your assets are distributed according to your wishes. This may include updating your will, creating a trust, and designating beneficiaries.This isn’t limited to your will either – speak with an accredited estate planning specialist to have your Powers of Attorney reviewed, as well as the consequences of the steps you want your plan to follow.
  2. Consider Tax Implications: Inheritance can have significant tax implications. A Financial Adviser and accountant working together can help you understand these implications and develop strategies to minimize your tax liability.

 

The Role of a Financial Adviser

It can be a little unclear how a financial adviser – especially an independent financial adviser – might be able to help you through this period.

After all, they just deal with investments, right?

Sadly, this public perception isn’t quite the whole story. Financial advisers really only have one job – to help people get from where they are, to where they want to go. With minimum hassle, risk and complexity.

Here are some of the key roles a Financial Adviser can play:

  1. Financial Planning: A Financial Adviser can help you develop a comprehensive financial plan that addresses your short-term and long-term goals. This ‘roadmap’ will capture where you are now, the complexities and considerations in your financial situation – and present strategies and options to help take away the pain of dealing with your finances.
  2. Investment Management: This is, inevitably and fundamentally, a part of what a financial adviser does. So we work with you to develop a plan and a strategy for all of your investments and assets – to harness them into taking you where you want to go.This can be a big change if you’ve never managed money before – so be sure to find a financial adviser sensitive to your unique journey.
  3. Debt Management: An Adviser can help you plan out how you’re going to manage your debts – old and new – in your new future.Great advisers will be able to help you find excellent finance brokers to help you ensure you’re also getting the best deal possible.
  4. Insurance Planning: An Adviser can help you evaluate your insurance needs and ensure that you have adequate coverage to protect your new financial situation.

 

Conclusion

The weeks, months and years following the loss of your partner can be overwhelming – and, to an extent, so they should be. This is an extremely important and life-altering event. It’s not going to skim by.

But navigating the financial decisions in that period can add an extra, unwelcome, element to the process.

However, the main point I want to leave you with today is that you don’t need to navigate that journey all alone.

Finding a financial adviser that gets it, that gets you and that knows the way through the dark tunnel you find yourself in, is incredibly valuable.

If you’re looking for a Financial Adviser, we hope you reach out to us here at PlanningSolo. In fact, I’m confident that we can provide you with that value, when you need it the most.

We work with you to provide you the support and guidance you need to make informed decisions that you understand, and believe in.

By following the steps outlined in this post – from the basics of financial planning, creating a budget, managing debt, investing and preparing for the future – we help you get to the point where you feel at ease with your money, and confident about the financial part of your future.

If you’d like to have a chat about your current position, you can use this link to find a time that works for you, for us to have our free 15-minute call.

 

Share this Post: