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LGBTQ+ Retirement and Estate Considerations

LGBTQ+ Retirement and Estate Considerations

June 01, 2023

Pride Month is here! All month long, people across the country are planning parades, events, and other community gatherings to celebrate the LGBTQ+ community. Love is love and our world is better when we remember to put love first. 

For members of the LGBTQ+ community, there may be specific financial considerations to keep in mind as you prepare for the future.

What comes to mind when you think about your retirement? Does it involve living close to your children, friends and family? Or, does your dream retirement include a modest home with plenty left over to travel the world? Or maybe you envision trading in your house for an RV, touring the country while always being able to take your home with you.

As you get closer to retirement, your dreams and goals may change. Sometimes what we wanted when we were younger just doesn’t fit the bill anymore. If you’re dreaming about a change to your retirement strategy, here are a few interesting things to ponder…

  1. If you were pressed, how would you rate your financial knowledge?

Are you the type of person who reads financial news and literature regularly, or would you consider yourself someone who would rather not deal with money?

The stats tell an interesting tale. Some estimate that just 15% of people who identify as LGBTQ+ feel confident with their investing knowledge. That number goes down for the younger generations, with a surprising 60% of LGBTQ+ Gen-Xers and Millennials feeling uncomfortable managing their finances.1

It's important to understand what’s going into your retirement strategy. If you need help, please reach out to a trusted professional.

  1. When is the last time you reviewed your financial documents?

It’s easy to forget about things like vehicle titles and updating your beneficiaries in the hustle and bustle of day-to-day life. While these are important issues to address once you’re legally married, addressing these details may be more vital in the context of an unmarried, committed partnership. Come up with a detailed strategy to make sure that your financial documents are in order.

  1. Do you have an estate plan?

No one wants to think about what happens when you’re no longer here, but estate strategies can require special considerations if you’re a member of the LGBTQ+ community, and even more so if you’re unmarried.

While the 2015 Obergefell v. Hodges Supreme Court decision allowed LGBTQ+ couples to marry, complete with all the legal protections afforded other married couples, there may still be some loopholes in your estate strategy. You may need to go beyond a will to confirm that your assets will be transferred according to your wishes and that you have the right documents in place to ensure that your spouse or partner can make decisions on your behalf, should the need arise. These additional strategies may include a medical power of attorney, durable power of attorney and even possibly a trust. If you have changed your name and/or gender, you will want to be sure that the wording in your documents is accurately reflected to avoid challenges later. 

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.

For this entire month, we honor our collective rights to live freely, love openly, and be truly, proudly ourselves. Don’t let key factors of your retirement strategy get overlooked. Whether it’s your investment options, or your document and estate strategies, I‘m happy to help you achieve all of your financial goals to reach your dream retirement lifestyle. You are not alone. Please call my office and let's schedule a time to meet.   

1. WealthEnhancement, July 24, 2020