The journey through widowhood presents unique financial challenges that many individuals find themselves unprepared to face. During a recent Open to Hope Conversations podcast, financial expert Kathleen Real shared valuable insights about helping widows navigate their financial futures after losing their partners.
Understanding the Three Stages of Widowhood
Real, author of “Moving Forward on Your Own: A Financial Guidebook for Widows,” outlines three distinct stages that most widows experience:
- Grief Stage: Characterized by shock and emotional turmoil, making it difficult to make clear financial decisions
- Growth Stage: A period of normalization when widows begin to take control of their financial situation
- Grace/Transformation Stage: The final phase where widows often discover new opportunities, including philanthropy or new relationships
The average age of widowhood is surprisingly young at 59.5 years, making financial preparation even more critical. Real emphasizes several key areas that require attention:
Taking time with major decisions is crucial during the initial grief period. Susan Bradley of the Sudden Money Institute refers to this as a “decision-free zone” – a time when only absolutely necessary decisions should be made. “Stop. There are three stages of widowhood. The first stage is grief, that deep, deep grief that they’re in. It’s like shock and awe.”
Protection Against Financial Predators
Real warns about financial predators who specifically target widows. Some unethical financial advisors actively seek out recent widows through obituaries, knowing they will receive life insurance and annuity payments. She advises widows to be cautious of both strangers and well-meaning relatives offering financial advice.
Housing Decisions
Many widows face pressure to make quick decisions about their living situations. Some feel compelled to move immediately due to emotional triggers or financial constraints. Others receive well-intentioned but potentially problematic suggestions from family members to relocate.
Real recommends waiting at least six months before making major housing decisions, allowing time for emotional clarity and practical consideration of all options.
Finding Qualified Financial Help
When seeking professional financial guidance, Real recommends working with certified professionals who specialize in widow’s issues. She suggests two primary resources:
- The National Association of Personal Financial Advisors (NAPFA)
- The Alliance of Comprehensive Planners
These organizations consist of fee-only financial planners who provide comprehensive financial planning rather than just selling products.
Frequently Asked Questions
Q: How long should a widow wait before making major financial decisions?
While each situation is unique, financial experts generally recommend waiting at least six months to a year before making significant financial decisions. This allows time to process grief and make choices with greater clarity.
Q: What are the first steps a widow should take regarding finances?
The initial step should be to assess immediate financial needs and gather information about existing accounts, insurance policies, and income sources. Working with a qualified financial advisor who specializes in widow’s issues can help create a structured approach to managing finances.
Q: How can widows protect themselves from financial predators?
Widows should work with certified financial professionals from reputable organizations like NAPFA or the Alliance of Comprehensive Planners. They should avoid making quick decisions about investments and be wary of unsolicited financial advice, even from family members.
Read more from Gloria Horsley on Open to Hope.
