For most married couples, one spouse has handled the investments they have planned for retirement, and the same spouse continues to do so during retirement.
The spouse that doesn’t handle the investments doesn’t know much about the money. This places the spouse not handling the money in a very vulnerable position.
The spouse handling the money may be doing it themselves, or may have an advisor to help. But either way, in almost all cases, there isn’t a written plan explaining the investments, how they work, why they were chosen, what they do, how much income they can provide, how much risk there is, the total fees being paid, and how everything fits together.
Because there is no written plan, if the spouse handling the money passes away, or is unable to handle the money for health reasons, the spouse not handling the money is in a terrible situation. Not only has something bad happened to the spouse handling the money, but now there is no one, and no plan to keep things safe and on track.
To avoid this nightmare you must:
#1- Find an advisor who can educate the couple, with the emphasis on bringing the spouse not handling the money “up to speed” on their money and plan.
#2. Create a comprehensive written retirement income plan showing all the details about your money and plans for retirement. Income. Taxes. Risk, Fees. Beneficiaries. Details.
#3. Review the risk of the current portfolio and determine if this risk is acceptable to both spouses. If the risk is too high for one spouse, especially for the spouse not handling the money, reduce the risk down to the acceptable level. This way, if the spouse handling the money can’t any longer, the other spouse won’t have to make any quick knee-jerk reactions in the future by themselves.
#4- Create enough dependable guaranteed lifetime income for the couple and for each individual spouse in case they are the survivor.
If you want to create a plan to make sure the spouse not currently handling the money will be secure in the future, call us today.
Vipul Varma
VIP Financial
402.547.0395
Financial Advisor in Parker Colorado
Estate Planning