Financial Planning for Single Women: Moving from We to Me

The truth is that, typically, women fare worse financially after a breakup. This is especially true for women who have substantial assets, joint accounts, or care for children. That’s why financial planning for single women is so crucial to helping them move forward successfully.

Infiniti Wealth Management is committed to compassionately assisting women during pivotal moments in their lives. Despite my proficiency in simplifying financial intricacies, I acknowledge the significance of respecting the unique journeys of women and the diverse challenges they encounter.

Please join me as we explore essential factors to consider with your financial advisor during a transition.

Review Your Financial Accounts

Being newly single and organizing your money can be difficult. As you start learning how to attend to your own needs, try to put out the biggest fires first. Reviewing your financial accounts is part of the process. Pay attention to:

• Joint savings and checking accounts: You can (and should) close these and start new ones on your own.
• Retirement accounts: This includes traditional and Roth IRAs, 401(k)s, and any other type of account.
• Other investment accounts: Health savings accounts (HSAs) and brokerage accounts that you’ve either inherited or acquired via a breakup need to be examined.

Even if both you and your former partner contributed equally, your financial situation is going to look different after a breakup.

That’s why financial planning for single women is so important. It needs to take new priorities and budget guidelines into account. My suggestion is to create a new budget that considers ongoing expenses like house upkeep and child-rearing costs.

Carefully think through the following while creating your new budget:

• Review your income: That includes any funds from earned income or Social Security payments that you may have relied on from your spouse. (We’ll talk about Social Security shortly.) Now take a look at your own earnings and determine how much money you bring in each month after taxes.
• Review your expenses: You may need to adjust your lifestyle in some way, which could be as easy as adjusting your discretionary spending or as hard as moving to a smaller, more affordable home. At this time in your life, it’s vital to establish a solid understanding of your monthly spending.
• Consider your financial objectives: Now that you’re independent, your short- and long-term financial objectives might be different. For example, you might want to establish a new company, organize a trip with friends, or revise your retirement plan.
• Sum it all up: Have a conversation with a financial advisor to refine your new spending plan and create a strategy for this next phase of your life. By doing this, you can reduce your stress and move closer to your financial goals.

Review Life Insurance Policies

If your partner passes away, you might be expecting a settlement from your life insurance policy. Always get financial advice before making significant financial decisions. You don’t want to lose all your liquidity, even though it could be tempting to, for example, pay off your mortgage or purchase a new house with cash. It might make more sense to invest in a method that fits your risk tolerance and financial goals, or to utilize some of the money to strengthen your emergency fund.

Remember, after a breakup, you should take your former partner off all insurance plans and any other accounts where they are named as beneficiaries.

Rethink Social Security

If you’re a surviving spouse, you might be eligible for Social Security survivor benefits. You can only choose to receive survivor benefits if the sum exceeds your current Social Security payment if you are already receiving those benefits. Put simply, you can’t collect both.

Following a divorce, you could be eligible for a share of your former partner’s benefits. These are the requirements:

• At least 62
• Unmarried
• You were married for a minimum of 10 years.
• You were divorced for a minimum of two years before requesting benefits.

The benefits you receive will have no effect on your former spouse or their current spouse if he or she has remarried.

The bottom line is that if you’re widowed or divorced, your new monthly budget needs to account for the changes in Social Security income.

Need Help Transitioning to Your New Life?

At any time in life, becoming single has its challenges. But being single provides a unique chance to reconnect with yourself, rediscover your passions, and explore what truly makes you happy. Use this time to engage in activities that bring you joy, learn new skills, or embark on adventures that ignite your spirit.

My mission at Infiniti Wealth Management is to use my knowledge and experience to help my single female clients pursue their financial goals with confidence and clarity. To get in touch, you can call our office at 845-278-8638 or send us a message.