4 Tips to Help Your Mom Prepare for the Future
Allie Williamson, CFP?
Financial Advisor | Serving Driven Couples ??, Business Owners ??, and Women Navigating Life Transitions ?? | Empowering Clients to Achieve Financial Freedom ??
Moms are some of the most wonderful, selfless people on the planet. They bring us into this world and teach us so much as we’re growing up… but as moms get older, it often becomes our turn to take care of them. Especially if they’ve gone through a divorce or been widowed.?
????As a daughter and granddaughter, I understand the emotional and physical strain that can occur when single, aging moms need a little more help each year.?
????If given the chance, of course we would create a way for our moms to enjoy a prosperous future - but how?
????The first step is creating a plan.
Why prepare sooner than later?
Women often experience a unique set of circumstances throughout their life that make financial planning even more essential to their future comfort.?
Because of this, it is imperative to plan for their physical and financial well-being before it becomes an overwhelming challenge.
This also means they will likely have less set aside for retirement and expenses occurred as they age.?
Women need a plan so they don’t outlive their assets after retirement.?
Living a long healthy life is a wonderful gift, but improper financial planning can bring unwanted stressors to both the individual and their families.
4 Tips to Prepare Mom for a Confident Future
Utilize Tax Strategies
Not many people like talking about taxes, but there are ways to make them feel a little less unpleasant. It’s tricky to talk specifics unless I know your unique situation - however, there are certainly ties to retirement planning and other life events closely integrated with taxes.
For recently widowed women in particular, it is crucial to look at tax planning during the year of their spouse’s death (even if they pass away on January 1). Financial advisors are available to help ease this difficult transition by providing fiscal clarity amidst the sudden changes and heartbreak.?
Create a Retirement Plan
At some point, most people want to stop trading their time for money and retire from their careers. In order for their typical lifestyle to continue, it’s important that a plan is in place. This is even more essential for women who have taken breaks in their careers to be a caregiver to children or their own aging parents. If life-altering events occur, such as the death of a spouse, divorce, or remarriage, it is crucial that existing plans are reevaluated.?
With a solid financial plan for retirement in place, moms (and their daughters) can both rest knowing they are financially secure in their future.?
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Leverage Insurance
Life and long term care insurance are some of the most common ways to ensure loved ones are taken care of financially as a policyholder ages or passes away. However, each policy has many intricacies that can be even more valuable to surviving beneficiaries if they are accounted for.
For example, if one spouse passes away, there is a way to use their life insurance payout to cover tax costs when combining each separate IRA into a Roth IRA. I know this sounds complicated, but with the assistance of a financial advisor, it can become a very straightforward, beneficial process.
Meet with a financial advisor to discuss these plans holistically.
The first three strategies can be planned individually. However, a financial advisor can guide you toward what will be most effective in the long run. For example, some tax and retirement strategies include components of life and long term care insurance. These four components are quite interconnected. By consulting with a financial advisor, you can optimize the “big picture” plan as well as the minute details.?
By getting ahead of life’s challenges and planning for mom’s future, it creates peace of mind for everyone.
As a financial advisor, my passion is to help woman face their future with confidence not because they’re simply hopeful, but because they have a plan.
If you or your loved one would like a free consultation, I’d love to chat with you about preparing for life changes and events in advance. Click here to secure your discovery call today.?
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) and its subsidiaries. Northwestern Mutual Wealth Management Company? (NMWMC) (investment advisory and trust services), a federal savings bank. NM and its subsidiaries are in Milwaukee, WI. Allison Whitney Williamson is an Insurance Agent of NM. Investment advisory services provided as an Advisor of NMWMC.?
This publication is not intended as legal or tax advice.? Financial Representatives do not render tax advice.? Consult with a tax professional for tax advice that is specific to your situation.
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1 年As a daughter, this article hit home. ?? Thanks for sharing Allie Williamson.