By Daniel T . Newquist , CFP ®, AIF ®

Daniel T . Newquist , CFP ®, AIF ® is a Principal Wealth Advisor with RNP Advisory Services in Morgan Hill with over 20 years ’ experience advising clients on their personal wealth and business planning needs . Investment advisory services offered through RNP Advisory Services Inc . - – a registered investment advisor . Securities offered through Securities America , Inc ., member FINRA / SIPC , an unaffiliated entity . The Investment Fiduciary standard of care applies to advisory services only . dnewquist @ RNPadvisory . com or call ( 408 ) 779-0699 .

The abrupt changes in the financial picture can be among the most stressful issues for widows and widowers . For younger spouses , especially those with children , the sudden and long-term loss of income can be frightening . Others may feel a false sense of confidence from lump-sum payments of insurance or retirement plans and overspend . In fact , among widows , 25 percent go through their husband ’ s death benefit in two months , according to 2015 information published on the Illinois Department of Financial & Professional Regulation website .

Having a thorough understanding of the household assets and liabilities before the death of a spouse prepares many survivors for going it alone – even if they relied on their spouse to do the actual bill paying and investing . Those who don ’ t have that knowledge beforehand face the additional stress and confusion of figuring it out during crisis or , worse yet , getting unpleasant surprises like large credit card debt of which they had been unaware .

The hindsight of knowing you should have paid closer attention provides little comfort . Help may be at hand , however , if you and your spouse had well established relationships with an attorney , accountant , financial advisor or insurance professional . If you can , meet with them together to begin building the picture of your financial situation . Bring to the meeting any documents you can , including wills , insurance policies and bank or investment statements . If your team is missing a piece , ask the advisors you have used to recommend a professional in that area or get referrals from friends and family . A word of warning : scam artists may come out of the woodwork soon after your spouse ’ s death . Some may claim to have had a relationship or account with your spouse . Ask for proof in the form of account statements and identifying information – but don ’ t provide any yourself . For example , a bank or investment company will have your spouse ’ s Social Security information . Do not give that information yourself if asked to verify . Have the caller give it to you . If accurate , confirm it . If not , do not offer to correct the information until you have received other verifying information like an account statement .

After you ’ ve met with your team – and it may take more than one meeting – you should have a clearer picture of where you stand for the immediate future and basic strategies for what to do with lump-sum payments . Your advisors will probably counsel against any immediate , irrevocable decisions like selling your home . Your financial advisor can help you with investing insurance or retirement fund proceeds as appropriate for your situation , and your accountant can provide strategies for minimizing the chunk Uncle Sam will take . Your attorney will guide you through any probate and estate issues . And your insurance advisor can make sure you get any lump-sum or periodic payments to which you ’ re entitled . Most of these professionals can also help you with Social Security claims or benefits .

If you find the number and complexity of financial decisions overwhelming , even with your team of advisors to help , consider asking a friend or family member to accompany you to these meetings . If you are unclear about a recommendation or process , ask questions and do not proceed until you are comfortable with the answers . Your advisors should provide information and guidance , but the decisions ultimately are yours to make .

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GILROY • MORGAN HILL • SAN MARTIN JULY / AUGUST 2017 gmhtoday . com