Robert and Shirley were a typical retired suburban couple. Robert was a former engineer for a water-treatment plant and Shirley was a retired schoolteacher. Their days were filled with farmers markets, gardening and other odds and ends. Life was serene. Retirement together seemed an endless bliss.
That changed suddenly when Shirley got the call. Her husband suffered a massive heart attack, and he would not make it. Shirley was 73 when Robert, her husband of 35 years, passed away suddenly and unexpectedly. Life would be different for her — in many ways.
Shirley and Robert divvied up the family chores. Robert handled all the “financial stuff” as she referred to it — from saving and investing to ordering checks. Shirley coordinated the household affairs — calling the landscaper, arranging doctor appointments. It worked.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But now alone and with two kids on a different coast, Shirley was overwhelmed with the questions: Where was the money? Would she have enough to live on? What is a stock certificate? How to take Robert’s IRA?
Robert, ever the meticulous engineer, left notepads of every contribution, investment, interest credited and even instructions on where everything was. He also left behind a confusing assortment of investments. He used five different banks, had 35 stocks held directly through stock certificates, two old annuities, an investment property and an old 401(k) still at his previous employer. No wonder Shirley felt overwhelmed.
Shirley’s situation is not uncommon. In my experience, there is usually one spouse who handles the money. Money can be a source of stress for couples to discuss, or one spouse isn’t interested, or simply busy couples divide and conquer. Either way, the surviving spouse is at a huge disadvantage when left out of the day-to-day money management.
For Shirley, she got the help she needed. Her estate attorney referred her to me, I reached out to the accountant, and quickly we got things pulled together. I helped her take inventory of all the assets. I ran projections to show her she had enough money to live on. I encouraged her to consolidate her five banks into one, got the paperwork to transfer the stock certificates into her name, instructed her on how to take Robert’s required minimum distribution from his IRA, moved his old 401(k) into an IRA for her, and encouraged her to sell the investment property. This gave her peace of mind.
All this led me to sit down with my wife and have the talk. It was kind of morbid at first, but it gradually made me feel better knowing my wife wouldn’t be scrambling for answers at a difficult time. I even created a file labeled “If I die” — for lack of a better title, I thought it is self-explanatory — that keeps our wills, life insurance policies, a summary of investment accounts, college accounts and even notes to my kids. Let’s hope we never need it.
Investment advisory and financial planning services are offered through Summit Financial LLC, an SEC Registered Investment Adviser, 4 Campus Drive, Parsippany, NJ 07054. Tel. 973-285-3600 Fax. 973-285-3666. This material is for your information and guidance and is not intended as legal or tax advice. Clients should make all decisions regarding the tax and legal implications of their investments and plans after consulting with their independent tax or legal advisers. Individual investor portfolios must be constructed based on the individual’s financial resources, investment goals, risk tolerance, investment time horizon, tax situation and other relevant factors. Past performance is not a guarantee of future results. The views and opinions expressed in this article are solely those of the author and should not be attributed to Summit Financial LLC. Links to third-party websites are provided for your convenience and informational purposes only. Summit is not responsible for the information contained on third-party websites. The Summit financial planning design team admitted attorneys and/or CPAs, who act exclusively in a non-representative capacity with respect to Summit’s clients. Neither they nor Summit provide tax or legal advice to clients. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local taxes.
-
Seven Surprising Reasons Retirees Are Going Back to WorkSure, money is a big reason to come out of retirement, but it's not the only reason retirees are doing it.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial PlannerHolding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their CommunitiesCredit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth AdviserFrom how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
The Risks of Forced DST-to-UPREIT Conversions, From a Real Estate ExpertSome new Delaware statutory trust offerings are forcing investors into 721 UPREIT conversions at the end of the hold period, raising concerns about loss of control, limited liquidity, opaque valuations and unexpected tax liabilities.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps ItThe Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could HelpTwo business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is IllDuring tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.
