Your Money & Business
What to Do When You are Suddenly Put in Charge of Your Finances
November 2018
By Alessandra DiMauro, CFP®, AEP®
Going through a divorce or experiencing the loss of a spouse is a traumatic life event that creates significant turmoil and stress. But if, on top of that, you're suddenly thrust into the role of being in charge of your financial affairs, it can be downright terrifying and intensifies the stress of an already awful situation. The unfortunate truth, however, is that such circumstances actually heighten the importance of making important financial decisions in the near-term.
If this is something you are going through, it's imperative that you have a financial professional to help you. In the 21 years that I’ve been an advisor, I’ve had the opportunity to work with many women who have found themselves in this situation. It has been extremely rewarding for me to be able to reduce stress and help navigate through what is initially perceived to be an insurmountable obstacle.
My recommendation for getting started is to take a deep breath and get organized. I assist clients in taking inventory to know what the assets are and where they are located. Other key areas to concentrate on are income sources and living expenses. From there, it is extremely helpful to prioritize and develop an action plan to address items step-by-step.
Here are some central issues to consider:
What do You Need?
Have an honest and detailed discussion about your feelings and preferences regarding financial matters. This will help you understand and define your own goals, objectives and attitudes regarding risk.
Create a Roadmap
A financial plan should be created to serve as a roadmap for your future. You will find that the peace of mind that comes from knowing you’ve addressed various “what if” scenarios is significant. By covering your investments, insurance, estate planning and income tax planning all within the context of a personalized financial planning exercise, your anxieties and fears can actually be converted to feelings of empowerment and control. It will help to prioritize actions steps and feel the satisfaction of knowing your financial house is in order.
Work with an Advisor who is Right for You
What’s even more important than the process is the person you choose to shepherd you through it. You need to engage with a trusted advisor who will partner with you during this difficult period. It should be a relationship with someone who is willing to educate, collaborate, and communicate in a manner that makes you feel comfortable and self-assured.
As much as the traditional marital roles for spouses have evolved, there are still many women who have not been as involved with the family’s investments and financial planning as they need to be once it’s their sole responsibility. And, as a result, the financial advisor currently in place may not be the best fit. Perhaps it’s a matter of chemistry and communication style, or perhaps it’s simply a matter of wanting a fresh start.
If you don't have a financial advisor, now would be the time to find one you trust. Similarly, if your current advisor feels like the wrong fit, don't hesitate to seek out a new one that suits your current needs and preferences. It's important to work with someone who can act as a compassionate advocate, keeping your best interests in mind. Your financial advisor should be someone you look forward to seeing, who puts your mind at ease and makes you feel more in control and grounded with respect to your financial affairs. Simply put, you owe it to yourself to have a relationship with an advisor that simply feels right for you…and when going through a major life transition, it's more important than ever.
If this is something you are going through, it's imperative that you have a financial professional to help you. In the 21 years that I’ve been an advisor, I’ve had the opportunity to work with many women who have found themselves in this situation. It has been extremely rewarding for me to be able to reduce stress and help navigate through what is initially perceived to be an insurmountable obstacle.
My recommendation for getting started is to take a deep breath and get organized. I assist clients in taking inventory to know what the assets are and where they are located. Other key areas to concentrate on are income sources and living expenses. From there, it is extremely helpful to prioritize and develop an action plan to address items step-by-step.
Here are some central issues to consider:
What do You Need?
Have an honest and detailed discussion about your feelings and preferences regarding financial matters. This will help you understand and define your own goals, objectives and attitudes regarding risk.
Create a Roadmap
A financial plan should be created to serve as a roadmap for your future. You will find that the peace of mind that comes from knowing you’ve addressed various “what if” scenarios is significant. By covering your investments, insurance, estate planning and income tax planning all within the context of a personalized financial planning exercise, your anxieties and fears can actually be converted to feelings of empowerment and control. It will help to prioritize actions steps and feel the satisfaction of knowing your financial house is in order.
Work with an Advisor who is Right for You
What’s even more important than the process is the person you choose to shepherd you through it. You need to engage with a trusted advisor who will partner with you during this difficult period. It should be a relationship with someone who is willing to educate, collaborate, and communicate in a manner that makes you feel comfortable and self-assured.
As much as the traditional marital roles for spouses have evolved, there are still many women who have not been as involved with the family’s investments and financial planning as they need to be once it’s their sole responsibility. And, as a result, the financial advisor currently in place may not be the best fit. Perhaps it’s a matter of chemistry and communication style, or perhaps it’s simply a matter of wanting a fresh start.
If you don't have a financial advisor, now would be the time to find one you trust. Similarly, if your current advisor feels like the wrong fit, don't hesitate to seek out a new one that suits your current needs and preferences. It's important to work with someone who can act as a compassionate advocate, keeping your best interests in mind. Your financial advisor should be someone you look forward to seeing, who puts your mind at ease and makes you feel more in control and grounded with respect to your financial affairs. Simply put, you owe it to yourself to have a relationship with an advisor that simply feels right for you…and when going through a major life transition, it's more important than ever.
Photo Credit: Amy Fletcher (A.E. Fletcher Photography)
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Alessandra DiMauro joined Resnick Advisors in Westport, CT in 2014. She works closely with clients to help them achieve their financial goals by advising on asset allocation, investment management and financial planning. Alessandra brings over 21 years of wealth management experience gained from the Private Banking Divisions of J.P. Morgan, Bank of America, and Union Bank of California as well as spending five years as a Client Advisor with Round Table Services, LLC. She holds the Certified Financial Planner™ and Accredited Estate Planner™ certifications and is licensed as a Registered Investment Advisor Agent. Alessandra earned a graduate certificate in Estate Planning and Taxation from the Irwin Graduate School of the American College and a Bachelor of Arts from Cortland College. She currently serves on the board of directors for the Estate Planning Council of Lower Fairfield County and is a resident of Westport, CT. In her spare time Alessandra enjoys softball, tennis, golf and yoga. |
