On Your Own - Financially
In the first few months of widowhood, don't make any hasty decisions. Focus on gathering and organizing papers and making an inventory of your assets and liabilities. If you are overwhelmed, ask a trusted friend or relative for help.
Even if you work with a financial advisor, don't simply let that professional step into the role your spouse might have played as the sole investment decision-maker. Bridge Beyond has seen that sometimes widows can be taken advantage of during these fragile times. Sometimes brokers have put their funds in B-class mutual funds which are typically much more expensive for the investor and are very profitable to the broker. Make sure to get a second opinion from a trusted friend or loved one! Don't be afraid to ask lots of questions and the cost of various financial instruments and how the advisor is paid to help you. You might want to consider someone that is not paid on commissions, but rather you pay a fixed fee.
Make sure to know exactly what is in your financial portfolio and whether particular assets are designed to provide growth or income. You need to take responsibility for your financial health. Ultimately, it is up to you to decide what to hold for your financial security.
Once your papers are in order you can get an accurate idea of the income you can expect. Find out how much you can expect to receive from Social Security, pensions and annuities. Put together a budget so you can live off your income.
Once you have an idea of the size of your portfolio and the cash flow you'll receive, check with whoever has been preparing your joint tax returns. This tax pro can give you an idea of how much income tax you'll owe and how much after-tax money you'll be able to spend.
Your after-tax income determines your budget. Go over your recent bills, credit card statements, etc., to see how much you've been spending. If your outlays have exceeded your new budget, you'll have to cut back.
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