In Your Interest – by Valerie Rumbough

According to population statistics, women outlive their spouses by a very high percentage. With that fact in mind, we have to ask, are women prepared to be widows? That may be a morbid question, but one that needs to be addressed.

Valerie Rumbough

Many times, women find themselves not only having to deal with the loss of their husbands, but also having to learn about finances the hard way because they were never familiar with the family finances. This can place a burden on the surviving spouse that is unnecessary with proper planning. So men, how do you plan for your wife’s widowhood? There are several things you can do:

– First of all, make sure you work on your finances together. Both of you should understand the inflows and outflows of your budget.

– Review your Social Security and pension benefits. What would your wife receive if you died first? Many times the amount the surviving spouse gets is one-half to one-third of what both were living on. You may need to delay retirement to give time for these benefits to increase and also to save more.

– You may want to fund IRAs for both you and your spouse. Life insurance may be an option you need to consider.

– Next, review your retirement healthcare benefits. Check into long-term care and Medicare supplemental insurance policies. Make sure that both of you have the proper documents in place, such as healthcare directives and living wills, and that you know where they are kept.

– Finally, make sure you have a good network of trusted friends who can lend financial, as well as moral, support. Keep a list of names and numbers to call, such as your CPA, attorney, and financially capable friends. Your church should be your best resource here.

Remember, one of the best ways to show your wife that you love her is to take care of her, both now and after you are gone.

Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina. Contact her at 800-723-7242. In accordance with IRS Circular 230, any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.