Here we are, another Pride month celebration. For those that may not know, June is considered Pride month in the LGBTQ community. We chose this month because the Stonewall riots occurred in late June 1969. It’s a time when we honor those who came before us and their sacrifices, we celebrate our hard-won social advances, and take stock of where we are as a community. Even with more civil rights and social acceptance, many in the LGBTQ community still need specialized financial planning. Quite often, you may see the term non-traditional planning. If you are a community member, read on to see why you need planning and how to access those resources.
With marriage equality, many assumed that planning for LGBTQ couples would simply match what we do for our straight counterparts who are married. There is also an assumption that equality is a given. Neither could be further from the truth! It’s true that marriage equality has made some aspects of planning simpler and more straightforward. But that’s not the case for all couples. Anecdotal evidence suggests people in the LGBTQ community still face hurdles with employment, housing, adoption, immigration, and a host of other daily issues. Consider that a 2018 Experian survey found that 62% of those in the LGBTQ community sited their sexual orientation or gender identity as a factor leading to financial problems. By the way, if you know of an updated study, please let me know. These are just a few of the reasons that members of the LGBTQ community need financial planning. Let’s take a look at a few items to get you on the right track. Financial planning encompasses many areas and the following are just starting points.
First of all, self-assess. Ask yourself if you are where you want to be financially. If you are not sure, or the answer is a resounding, no, then it’s time to get professional help from a financial planner. Even if you answered yes, or maybe, you could probably use a second opinion. Do you even know what that right track is for you? Is your issue lack of earnings, lack of savings, or not sure where to start with investments? Do you need to learn to budget? Is it all of those things?
Next, what’s your relationship status and your living situation? Whether single, married, cohabitating, or in some other arrangement, you likely need some framework or agreement in place. This is especially crucial if children are involved be they biological or adoptive. What rights do you have to property? Are you the owner of a house with a live-in partner who is not married to you? If you become sick or incapacitated, who will make decisions for you?
These lifestyle issues point toward estate planning. Estate planning doesn’t have to be complicated or expensive. You have to determine which components you need such as a will, power of attorney, advance directive (invaluable), cohabitation agreement, and possibly a trust. If you take charge and make decisions now, you will have control over your care and decisions like who gets to stay in your property. It will provide you with peace of mind knowing that your wishes are being carried out and not those of a family member you may not like, or worse, the state where you live. It also prevents you from making emotional decisions at a time of crisis. Estate planning is especially important for single people.
The aforementioned topics very briefly discuss income, wealth, goals, and your personal living situation. Those are basic areas of financial planning to consider. There are other areas such as tax planning, retirement planning, Social Security, budgeting, goal setting … the list goes on! To get started, find a financial planner that is sensitive to you and your unique situation.
Where to look for a financial planner? You can now search for a fee-only, LGBTQ friendly adviser from resources such as the Certified Financial Planner board of standard’s letsmakeaplan.org, or the National Association of Personal Financial Advisors (NAPFA), or the XY Planning Network (fair disclosure, I am a CFP® in good standing, and a NAPFA and XYPN member). As an LGBTQ community member, I can relate. Happy Pride!
As an independent CERTIFIED FINANCIAL PLANNER™, I can help you take Pride in your finances. Contact me and let’s get started. #talktometuesday #getstarted #HowIcanHelpYou #GetHelp #Hireaplanner #Pride #Pride2022 #CFPPro #savemoney #LGBTQ #QueerMoney