Financial talks & articles can be a little stressful to read as they touch on topics that keep people up at night. Knowledge can help you go back to sleep! This issue, we are focusing on divorce & transition.
Divorce is a painful transition for a family to endure and switching from a dual- to a single-income household brings many financial challenges. However, there is an added challenge for women: The average woman’s income will decrease significantly after a divorce.
After a divorce, women may become solely responsible for their earnings, savings, and retirement planning. After a divorce, men tend to experience only a 10% drop in income, while women are likely to experience as much as a 27% decline. As many women have found, there is life after a divorce; however, it is critical to anticipate and plan for its potential effects on your savings and retirement goals.
There is no doubt that many women face unique obstacles to growing their wealth. However, a realistic perspective and proper planning can help overcome these challenges and build a long-term financial strategy.
Reilly, Kristen. The Economic Consequences of Divorce: The Role of Child Support, Labor Force Participation and Means Tested Transfers over Time. Cornell, 2009.
Thriving During Life’s Transitions
We believe that planning ahead is the most important thing you can do to help secure your financial future. It is disappointing and concerning to see there is still such inequality between men and women when it comes to making decisions about their investments.
Preparing for the future is one of the most important aspects of financial planning, and a lack of involvement leaves women potentially exposed to financial hardship later in life. Don’t expect your husband, spouse, or other family member to ensure your financial security; it is critical that you take an active role in your financial future.
While it might be practical for one partner to take the lead in research or planning, decisions should be discussed and made jointly on a fully informed basis. This will help ensure that families are better prepared for the future and that women are less financially vulnerable. It can be hard to think about and plan for unpleasant events, but doing so can help you protect yourself and secure your future.
We often meet with prospective clients who have been divorced or widowed and who are unaware of what they actually own, where it is located, or how to access it. That is one of the reasons we created our Peace of Mind Checklist to be a simple tool for organizing important financial documents. What we encourage you to do is complete this checklist and share it with those who may need to help you deal with an unexpected situation. Engage your husband, partner, spouse and other family members in regular discussions so that everyone is kept informed of important financial plans and future goals. These discussions don’t have to revolve around thinking up worst-case scenarios. A fun activity can be to dream together about future goals or retirement plans. Children can be brought together to talk about the family legacy and your estate plans.
Hopefully you already have a grasp on your own portfolios but if you don’t, maybe this article can serve as some inspiration!
Footnotes, disclosures and sources:
Securities and advisory services offered through National Planning Corporation.(NPC) Member FINRA, SIPC, and a Registered Investment Advisor. Trilogy Financial Services and NPC are separate and unrelated Entities. Opinions, estimates, forecasts and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information. These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice.
About Your Columnist
Windus Fernandez Brinkkord is a featured columnist for Women Taking Charge, the official blog of Connected Women of Influence, where she covers the intersection of women in business and managing their investments and taking charge of their financial future. Currently, Windus is Senior Vice President of Investments with Trilogy Financial Services, a financial services company that focuses on helping business owners and individuals build and manage wealth.