Ask Kim
Where to Find Financial Help
Finding myself as a single mother and limited to social security benefits and life insurance, I desperately need financial direction to prepare for survival. Any advice or direction on where to go?
By Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
November 14, 2005
My husband always received your magazine and used it both professionally and personally. He was recently killed, and was our family's sole provider. Now finding myself as a single mother of a 2-year-old and limited to social security benefits and life insurance right now, I desperately need financial direction to prepare for survival. Any advice or direction on where to go?
I am very sorry to hear about your husband. Because you are going through such big changes now, you really need a financial expert who can meet with you in person, study your financial situation in detail and give you a road map for the future.
You'll need to make some key decisions soon:
- How you're going to invest the life insurance proceeds to provide income that will last for years?
- Can you afford to continue to stay home with your child?
- What insurance will you need on yourself to protect your child if anything happens to you?
- How will you prioritize your saving and spending goals for the future?
Unfortunately, many financial planners can be quite pricey -- typically charging from $3,000 to $5,000 for an initial plan, plus up to $300 per hour for consultation, or 0.75% to 2% of your assets to manage your investments. And some will only take on new clients with a net worth of at least $500,000 or $1 million. But more firms are starting to provide fee-based advice, where you pay $100 to $150 per hour to meet with a financial adviser and set up a plan for the future, even if you aren't ready to become a regular client.
The Alliance of Cambridge Advisors, the Garrett Planning Network and several other firms have pre-screened planners throughout the country who can offer one-time fee-based advice at affordable rates, which can help you get on track, and can continue to work with you on a regular basis if you'd like ongoing support. For additional online financial adviser resources, see Make a Financial Match Online. For more information about selecting a financial planner, see Finding the Right Pro.