Column: Financially surviving widowhood – Cincinnati.com

10:16 a.m. ET March 1, 2017

Tom Keller Community Press guest columnist

Losing a husband is one of lifes most emotionally-devastating events, and many financial advisors recommend deferring major financial decisions that first year of grieving. Eventually, however, financial decisions will need to be made.

Seventy percent of widows retain a new financial advisor within the first year of a spouses death, according to a Fidelity Investments survey. Why? For some women, the answer may be that a spouses death is a financial Independence Day- a chance to finally make financial decisions freely, instead of agreeing to a husbands wishes.

Regardless of how a woman feels about her familys past financial decisions, its predicted that women over the next few decades will inherit close to $30 trillion in intergenerational wealth transfers. Thats why women need to educate themselves about money - they tend to outlive their husbands.

Here are five areas to address when a widow begins stewarding her financial portfolio:

Inventory bills and create a plan to cover expenses for the first six to 12 months, limiting large decisions. This allows time to analyze decisions that may eventually need to be made to develop new financial goals and objectives.

Review staying in a current residence or moving to a home requiring less maintenance and upkeep. This can be difficult, since most widows choose to stay in the homes where their children grew up and where they have their best memories. A move may make economic sense, but it may not be the best decision for the widow emotionally or for the long term.

Update ownership of all investments and the beneficiary list on retirement accounts. If assets outside of retirement accounts are owned, consider titling those assets in a Living Trust or Transfer on Death designation so beneficiaries receive assets without going through probate court upon your own death someday. This step is often overlooked, yet it can save heirs time and money.

Re-evaluate your investment portfolio to match needs and risk tolerance. Widows may have a different risk tolerance compared to a spouse.

Work with a CPA or trusted family member during tax time the first year after a spouse dies. This ensures that investments and insurance have been changed to the surviving spouse. Tax documents help confirm whether assets have been moved - or if an account was missed during the inventory phase. Sometimes widows are surprised by the number of open accounts. These can include investments, bank accounts and credit cards.

Whether a husband battled disease for a long time or was taken quickly doesnt matter when a widow grieves. The length and depth of grief varies significantly from one person to another, so its important to resist making important financial decisions until a widow is emotionally strong and clear-minded enough to make decisions that she will not regret later.

Time helps heal our emotional losses as we adjust to a new life without a loved one, and the security of knowing you are making good financial decisions in the wake of a death only makes the transition smoother.

Tom Keller of Western Hills is a Certified Financial Planner with Kehoe Financial Advisors in Springdale. For more information, go to http://www.kehoe-financial.com or call 481-8555.

Read or Share this story: http://cin.ci/2m8mqSA

Link:

Column: Financially surviving widowhood - Cincinnati.com