Research has shown that, overall, women tend to focus on progressing toward a set of financial goals like sending children to college, retiring comfortably or leaving a legacy, just to name a few. Regardless of your personal or professional path in life, you can always work toward achieving a more secure future for yourself and your loved ones. It’s never too early or too late to start planning for a better tomorrow. The following are important financial planning topics and tasks for single and married women to consider:

General Recommendations

• Be engaged and participate in all household financial decisions.
  
• Educate yourself on your financial resources before making large purchases.
• Do not co-mingle or jointly title assets with a non-spouse (roommate, partner, parent, adult child, etc.).
• Always review your tax returns before signing to ensure income and expenses are thoroughly accounted for. Remember, you are responsible for all information represented, regardless of who prepared the return.
• Read all legal documents carefully before signing them (mortgage applications, business contracts, Wills, Financial Power of Attorney, etc.) and ask questions about anything that is unclear.
• According to research, money issues are one of the leading causes of divorce in the United States. It’s important to have detailed saving and spending discussions with your spouse to set expectations on mutual and individual finances.
• When appropriate include your financial advisor/planner, attorney and accountant in family meetings about finances.
• Talk with a financial professional and evaluate the potential for underlying risk and volatility in your investments.
• Be sure you have an audience with your financial advisor/planner—your financial future is at stake.

Credit

• Establish credit in your own name, including having a credit card(s) set up with you as the primary account holder.
• Pull your credit report, annually, by visiting www.annualcreditreport.com to review outstanding debts and protect against identity theft. This is a free service.
• Make sure your finances are strong enough to support your needs before making the commitment to helping others, including your adult children.

Employee Benefits

• Stay informed about your and your spouse’s employee benefits at each open enrollment (medical, dental and vision insurance, disability and life insurance, retirement plans, etc.).
• If you or your spouse are active or retired military, you should research and understand your accessibility to Tri-Care (government-managed health insurance) and survivor benefits for you and your children (life insurance, pension benefits, burial accommodations, etc.).

Insurance

• Determine if your disability and life insurance are adequate to maintain your lifestyle following the loss of your partner’s/spouse’s/roommate’s monthly income and household contribution:
  • Create an action plan for the loss of household income.
  • Separate survival from discretionary expenses and be ready to cut costs immediately upon reduction or loss of income.
• Establish a written family plan for long-term care. Outline who will take care of you, where you will receive the care, and triggers for activating your plan. Consider whether long-term care insurance is right for you.
• Research and consider purchasing an umbrella liability policy.

Retirement and Death

• Save for retirement in your own name using a 401(k), IRA or other retirement savings account.
• Spousal income can be used to determine eligibility to contribute to a Traditional or Roth IRA.
• Understand the difference in value between non-retirement (checking, savings, money market, etc.) and retirement assets (401(k)s, IRAs, health savings accounts, etc.), including the taxation and accessibility of both.
• Participate in pension and Social Security election decisions. In a divorce, do not waive your spousal rights without understanding what benefits you are giving up.
• A “non-spouse” cannot waive spousal rights. The Employee Retirement Income Security Act of 1974 (ERISA) governing retirement plans mandates the spouse to be the beneficiary of retirement accounts, unless the spouse waives her rights in writing after marriage. If you agree to a pre-nuptial agreement, be sure to educate yourself on the assets that are not included.
• Before retiring and leaving your salary and vacation benefits, practice living on a reduced income. Meet with a CERTIFIED FINANCIAL PLANNER™ professional to determine your retirement readiness.
• Understand the titling of your home and your vehicles; this means who is listed as the legal owner of these assets on property deeds and vehicle registrations. What will happen to those assets if you or your spouse/partner passes away?
• Retain a copy of all beneficiary election forms for your insurance and investments. Be sure all ex-partners have been removed as beneficiaries. If you can’t find a copy of this form, submit a Change of Beneficiary form to your financial institutions (and keep a copy); this can sometimes be done online.