Widowed or divorced?
Two major trends are profoundly impacting women.
Women are living longer—longer than men.
Nearly half of marriages are likely to end in divorce, with rates rising among couples over 50.
Inevitably, eight out of 10 women will end up solely responsible for their financial well-being.
A UBS surveyed hundreds of divorcees and widows in 2018, about the financial challenges they faced once they were on their own.
2018 UBS - American Survey
We agree with these results.
In the past, we have seen many who have had a spouse recently pass or a breakdown in relationships come through our office doors in Newcastle. In many cases the individual that is seeking support has limited financial education or knowledge. Their spouse was the CFO of their household, managing the finances & making financial decisions.
As a Financial Planner our role is to support & educate those who seek advice, so they can make an informed decision & take control of their situation.
We are a personalised GPS to support you along your journey (as explained in the video).
Dealing with divorce or the loss of a loved one are some of the most difficult experiences in life.
This can be a very sad and emotional time & finding the right opportunity to address the financial side of things, when you are going through an incredibly difficult time is hard & can be overwhelming.
However, in addition to coping with change or tragedy, you also become solely responsible for overseeing and/or resolving a variety of other issues as well.
Key steps for ensuring your financial well-being
Avoid making large financial decisions.
While you may feel pressured to move or sell property, steer clear of making any drastic decisions too quickly.
Give yourself time to figure things out and avoid spending money on a whim. Make sure you assess your financial situation prior to committing to any money-related issue, such as giving out loans or making large purchases.
Allow yourself to mourn and deal with this significant life change.
As you take care of your own needs and overall health, you’ll ultimately be able to make smarter financial decisions later on. It’ll also give your Newcastle Financial Advisor more time to make better recommendations for you and your family.
Assess your current financial situation.
It is imperative to know where you stand today and what you want for the future. Take the time to add up your assets and your liabilities, like loans, credit and other debts.
Create a budget
Determine necessary expenditures and create a budget.
Even if we’re talking about millions of dollars, it’s important that you identify your monthly fixed expenses and create a spending plan. No matter how much money there is, it’s a finite number. Creating a budget will also help you make wiser investment decisions and maintain a savings balance.
Ask yourself a series of questions to help frame your needs
What do you want to accomplish in your life?
Who are the people who matter most to you?
What do you want your legacy to be?
What are your main concerns?
How do you plan to achieve your life’s vision?
Then think about your wealth along three key dimensions:
Liquidity—to provide cash flow for short-term expenses.
Longevity—for longer-term needs and
Legacy—for needs that go beyond your own.
Set up quarterly meetings with your Newcastle Financial Planner.
By doing so, you’ll be able to not only stay up-to-date on your investments, but learn more about each one as well.
Your Newcastle Financial Planner will continue to provide you with reassurance & peace of mind that you are on track to achieve your goals.
The Money-smart Government website outlines practical ways to separate your finances, including;
bills
mortgages
superannuation
wills
property
decide how to care for your children