What To Do If You're Widowed #37
The day that no one wants to plan for is the day they will lose the person they love the most. We spend a lot of time planning and preparing for joining our lives together with our spouse but rarely do we devote the same amount of time and energy to plan for life after they are gone.
With COVID-19 leaving many people reeling with the loss of their spouse, parent, or primary caregiver, I wanted to provide a helpful resource so people like you can start planning and preparing before it's too late.
From death certificates and Social Security to joint accounts and selling your home, on this episode, you’ll hear some helpful tips that will get you started in the right direction when it comes to planning your future as a widow/widower. Have pen and paper handy, you’ll want to take notes and even share this one with some people in your life.
You will want to hear this episode if you are interested in...
Why it is a good idea to pause financial decisions after your spouse passes away [2:00]
How to start preparing for your new financial future [4:30]
What do you do about Social Security? [6:00]
Understanding how access life insurance funds or a pension [10:00]
Dealing with joint accounts [13:00]
What is a required minimum distribution? [14:30]
Don’t forget about taxes and setting a new budget [17:00]
Update your beneficiaries and estate documents [19:00]
Is it time to downsize? [21:00]
Closing thoughts and resources [23:30]
Don’t make any quick financial decisions
Losing someone you’ve joined your life with is unimaginable for many people. You assume that life will be fine and that you’ll handle anything that comes your way together. But what if one of the most challenging moments in your life comes when you lose that person you’ve depended on for so long?
Days, weeks, and months after the loss of a spouse can be some of the most sensitive and vulnerable times you ever face. The last thing you should be doing in such a vulnerable and turbulent time is making long-lasting financial decisions.
Just because you received a large life insurance payout or your home suddenly feels very empty, this doesn’t mean it is the right time to lend out money or sell your house. Those decisions can wait until you have a clear head and the grieving process has subsided.
Many experts recommend waiting between 6 - 12 months before you make any significant financial decisions after the loss of a spouse. My hope is that savvy investors like you will take this critical advice to heart and make sure you have a plan in place to avoid unnecessary financial decisions immediately following the loss of your spouse.
Re-organizing your life
Avoiding any substantial financial decisions is a crucial first step but what comes after? How do you put the pieces together after you’ve lost someone who means so much to you?
Over the years, I’ve seen too many men and women who are reeling from the loss of their spouse and fail to take the necessary steps to re-organize their life. While the term “Reorganizing” sounds extreme, the truth is, you need to think broadly when it comes to planning for your future.
After some time, you’ll need to start contacting entities like life insurance and others to make sure you’ve updated your beneficiaries. Don’t forget to update your will, medical directives, and other documents to reflect the passing of your spouse. Making these simple changes can have a huge impact on your family when they deal with your passing down the line.
If you want to learn more about planning for your future as a widow or widower, make sure to listen to this episode and check out the resources listed below.