If you are married, chances are you or your spouse will have to suffer through widowhood. The Widowed in Retirement series aims to help you navigate this difficult transition as best you can. Today, Mark Trautman joins me again to discuss how to work through the huge financial changes that result from losing a spouse.

There are myriad financial considerations to be aware of during this change, so this may be an episode that you want to bookmark to refer back to later or send to a friend in need. Press play to listen.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT [3:26] A common myth of widowhood [5:11] What changes occur when you go from two to one [9:27] Expenses don’t change [16:44] Creating a new financial plan [20:20] Tax planning [25:25] Social Security benefits LISTENER QUESTIONS [36:55] A 59 ½ IRA withdrawal rule question [38:52] How to calculate the 5-year rule for a Roth IRA [40:27] How to handle the cash bucket in a down market [45:03] Healthcare before Medicare BRING IT ON WITH MARK ROSS [49:11] What is passion? [51:23] How to explore your passions [55:15] Building boundaries around your passions so they don’t become work TODAY’S SMART SPRINT SEGMENT [58:45] Put dabble on your calendar Resources Mentioned In This Episode BOOK – After the Death of Your Spouse by Mike Piper

BOOK – Taking Stock by Jordan Grumet

BOOK – AARP Checklist for My Family by Sally Balche Hurme

BOOK – So Good They Can’t Ignore You by Cal Newport

BOOK – How to Think Like Leonardo Da Vinci by Michael Gelb

Everplans

Episode 477 – Navigating Life Changes

Rock Retirement Club

Roger’s YouTube Channel – Roger That

BOOK – Rock Retirement by Roger Whitney

Roger’s Retirement Learning Center…(read more)

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Losing a spouse is one of the toughest challenges one can face, and it becomes even more challenging during retirement when financial changes come into effect. For many couples, retirement planning and managing finances are a joint effort, which makes it all the more difficult for the surviving spouse to navigate the financial changes that come with widowhood. However, with thoughtful consideration and planning, it is possible to effectively manage finances after the loss of a spouse.

The first step in navigating financial changes in retirement after the loss of a spouse is to assess one’s financial condition. This analysis includes reviewing all sources of income such as pensions, social security benefits, and other retirement accounts. After assessing the sources of income, the widow should review outstanding debts and liabilities to ensure that they remain manageable. This will help in identifying potential financial adjustments to be made concerning spending and budgeting after the loss of a spouse.

Another crucial step in managing finances after losing a spouse is to create a new budget. Since a couple’s expenses are often divided, a single individual’s expenses will be much lower. Therefore, the widow should create a budget that reflects these reduced expenses while ensuring that they can live comfortably. Careful budgeting can also enable the widow to identify areas where they may be able to save more money or invest it somewhere else, which can provide additional security or future financial benefits.

In retirement, investments are often a key source of income. So, after losing their spouse, the widow must review their investment portfolio and adjust it accordingly. The survivor should seek professional advice to ensure that their investment strategy aligns with their financial position to fit long-term goals. They should also add or remove beneficiaries or make changes to their estate plan.

Another critical aspect to consider is the protection of the financial legacy of the surviving spouse. The widow should review their estate planning documents such as wills, trusts, and powers of attorney to ensure they reflect their current wishes. Similarly, the surviving spouse should also consider reviewing their current accounts, insurance policies, and other financial accounts to ensure they are correctly updated.

In conclusion, losing a spouse is a challenging time, and navigating the financial changes that come with widowhood can be overwhelming. However, taking the steps mentioned above can help the surviving spouse manage their finances and ensure a comfortable retirement. By assessing one’s financial situation, creating a new budget, adjusting investments, and reviewing protection plans, the surviving spouse can overcome the financial challenges they may face and live with financial security.