Women in Confidence provides a supportive community for educating, empowering and energizing women so that they may embark on the next chapter of their life journey with confidence.
Amy L. Colton, MBA, CDFA (Certified Divorce Financial Analyst) is Managing Director of Women in Confidence for Forefront Wealth Partners. The team at Forefront looks at life transitions through the eyes of women to determine how wealth management services can help deliver a lasting foundation for lifelong financial security and personal success.
Divorce can be a distressing and painful transition. Often women feel disconnected from the life they knew and apprehensive about the unknown world they are stepping into. When facing a divorce, competent counsel is essential to ensure a woman’s rights are well protected.
Common financial themes addressed during a divorce include the division of marital assets and liabilities, spousal support obligations, child support and visitation, the impact of taxes, health and life insurance decisions, and estate planning.
A strong, coordinated, team of both legal and financial advisors is essential for a successful result.
Regardless of the lifestyle chosen, women should clarify their expectations and be prepared to identify obstacles, roadblocks, or fears around this transition.
It is imperative to model and evaluate income and expense scenarios to ensure that money doesn’t run out. Other issues to address include the amount and timing of Social Security benefits, proper handling of employer plan distributions, healthcare coverage, and risk management options such as life and long-term care insurance.
Loss of a Loved One
The loss of a spouse, a child, or other loved one is emotionally devastating.
A strong support system, including family, friends, and clergy can be of immense help during this re-building process. Beyond these, a trusted financial professional who helps direct monetary decisions and acts as a supportive team player can greatly relieve stress and preserve net worth during this difficult time.
The greatest obstacle facing women who receive a sudden inheritance is a lack of preparation. Regardless of investing sophistication, a woman can find herself thrust into a realm where financial decisions affect not only the rest of her life, but also the lives of future generations.
While moving from one life path to another may certainly have exciting and fulfilling advantages, it is helpful to understand both the benefits and drawbacks of this transition. Some questions to consider are:
- Will the new opportunity support or enhance my current standard of living?
- What investment or financing is necessary to launch a new business?
- What is the worst possible outcome if plans do not work as envisioned?
- Is there an exit plan or fall- back strategy?
There comes a time for many when maintaining a home, along with shopping, cooking, and cleaning becomes too great a burden. When you add health issues and the need for physical assistance to this scenario, there’s now a reason to seriously consider a transition from the family home to some type of continuing care residence.
More than two-thirds of Americans over the age of 85 are women. With advancing age, disabilities are more prevalent, and the need for long-term care services increases. Among people over the age of 75, women are 60% more likely than men to need help with 1 or more of daily living activities.1
Lastly, there are many women who are part of the sandwich generation—that is, those who have a parent age 65 or older and are either raising a young child or financially supporting a grown child. About 1-in-7 middle aged adults are providing financial support to both an aging parent and a child.2
A skilled wealth advisor can serve as the needed decision partner by shedding light on complex financial issues before proceeding with any of these family and home transitions...
1 Houser, Ari. "Women & Long-Term Care." AARP Public Policy, 2007.
2 Parker, K. and Patten, E. (2013) The Sandwich Generation Rising Financial Burdens for Middle-Aged Americans.
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