My heart breaks each time a client calls to say their loved one has passed away. Whether their spouse, mother, father, sister, brother, or child, the call is always hard. The disbelief and unimaginable grief is cloaked with a sense of urgent purpose to tend to practical issues more easily understood. In that moment, I just want to love them, comfort them and help make sense of their life ahead.
As a financial advisor, it is important to educate, empower, prepare and engage my clients in real life financial situations. We are partners in their financial journey through life, whatever the circumstance. In times of sorrow, we encourage our clients to take a deep breath and focus on their hearts and their families. Typically, there is no immediate need to rush into financial decisions.
Grief is overwhelming and can cloud your rational thinking. Handling these details can be confusing and don’t have to be addressed all at once. We generally asses the specific situation for our client, establish a timetable and then plan, guide and work through the matters with them, working with their CPA, attorney and family members.
If you don’t have professionals in place to support you in this situation, it is never too late to reach out. If you prefer to go it alone, there are ways to get a handle on your finances and feel more in control.
Assess what you have
It’s important to start with an overview, a baseline if you will. What do you own and what do you owe? The easiest way to do this is to make a list. First, list your assets – your home’s current market value, bank and investment accounts, retirement savings, etc. Second, list your debts – mortgage, car loans, credit card debt, student loans, etc. Finally, subtract your debts from your assets, and this will give you your net worth statement.
Get organized
Create a filing system that makes sense to you. You want to have easy access to anything you may need to check periodically (bank, brokerage, and credit card statements, receipts, insurance policies, etc.) Organize legal and tax records, and consult with these professionals regarding pertinent issues relating to your loved one’s passing.
Update information
You need to be sure that all accounts, loans, property titles, credit cards, etc. are now under your name only. You will also want to update your own beneficiary designations on insurance policies and retirement accounts. Also, if you are receiving Social Security, you want to be sure to contact the Social Security department (ssa.gov). As a survivor, you are entitled to the greater of you and your spouses benefits. The SSA will work with you to ensure you receive the maximum benefit you’re entitled to.
Be active and engaged
Once you feel settled, organized, and comfortably in control of your financial situation, it’s important that you take an active role in your financial life. Make a contract with yourself to:
- Set short and long-term goals. This will help you stay disciplined with an eye towards the future.
- Create a budget. A structured budget that makes sense for your lifestyle is crucial to meeting the goals you set.
- Build a safety net. To safeguard against the unexpected, it’s wise to keep enough assets in cash to cover two to three years of expenses.
- Reevaluate your investment portfolio to make sure that you have the appropriate amount of risk for this point in your life.
- Assess your estate plan. Talk to your family and an estate planner to ensure that the future is properly taken care of.
This is just a starting point. Your situation will be unique with its own complexities. Overall, be engaged, disciplined and part of the process. Consider partnering with a financial advisor that you trust to make sure that your portfolio is appropriately structured to meet your life needs and goals. This partnership (and it should be viewed as such) is an integral part to your financial success.
At RNP Advisory Services we pride ourselves in helping our clients live confidently. We are happy to answer any of your questions regarding investments, retirement, and financial planning. Please visit is us at http://rnpadvisory.com or call us at (408) 779-0699.
RNP Advisory Services is a Registered Investment Advisor.Securities offered through Foothill Securities, Inc. – Member FINRA/SIPC, an unaffiliated company.
