Navigating financial decisions after losing a spouse can feel like piecing together a puzzle without a key piece. For Mary, the loss of her husband, Joe, felt like a new reality. Joe had been the head of their financial household, a true do-it-yourselfer, and his sudden absence left Mary feeling overwhelmed and uncertain.
Mary was referred to P&A by her adult daughter, who had been a long-time client. During our first meeting, she shared her struggles: “I feel like I’m learning a new language in trying to understand financial statements, documents, and forms that fill my mailbox weekly.” While her children were supportive, the sheer volume of financial decisions and paperwork left her exhausted.
At P&A, we specialize in guiding clients through transitions that we consider “money in motion” events. For new clients, including widowers, we begin with a complimentary investment review. This process provides clarity on current investments and prompts planning discussions tailored to the client’s needs and goals. To get started, we typically request any investment statements or financial notices the client has received.
For Mary, this review became the foundation for her financial journey. At the conclusion of our second meeting, we had:
-
-
- Provided an overview of her current investment mix (stocks, bonds, and cash).
- Identified underlying account expenses, including advisory fees.
- Discussed strategies to simplify and consolidate her accounts.
- Reviewed tax planning opportunities as part of her investment strategy.
-
A key area of focus was Joe’s IRAs falling under spousal transfer rules, these accounts could be transferred into Mary’s IRA, simplifying management and maintaining tax-deferred growth.
Joe, an Accountant, had always filed their joint tax return. Mary needed an immediate referral for an accountant who could help her file the previous year’s return. Joe passed on New Year’s Day, allowing both the previous and new year’s returns to continue as “Married Filing Jointly.” We connected her with an Accountant referral to provide confidence and support in tackling this area of her financial life.
We also addressed options for three non-qualified annuity contracts Joe owned. Two were fixed annuities earning simple interest annually, while the third was a variable annuity with performance tied to mutual funds. Settling these contracts required completing claim forms and evaluating specific settlement options. After reviewing her choices, Mary decided to continue each contract as owner and beneficiary, deferring income until she had a clearer understanding of her needs – short and long-term.
By taking these initial steps, Mary began to feel more confident in her ability to manage her finances. As we moved forward, she expressed relief knowing she wasn’t alone in this process. At P&A, our goal is to provide not only investment expertise but planning services to guide clients through life’s most challenging transitions.
If you or someone you know is navigating a similar journey, our team is here to help. Schedule a complimentary investment review today to begin simplifying your financial life and building a plan for your future.
Disclosure: This blog is for informational purposes only and does not constitute individualized financial, tax, or legal advice. The scenarios described are fictional and for illustrative purposes only. Investment decisions should be made based on your unique financial situation, objectives, and needs. Past performance is not indicative of future results. For personalized advice, consult a financial advisor or tax professional.
Stay tuned for part two of this series, where we’ll explore the next steps in Mary’s journey: developing a personalized financial plan that aligns with her long-term goals.
Clicking on the links above may result in you leaving the Pittenger & Anderson, Inc. website. The opinions and ideas expressed on these external websites are those of third-party vendors and Pittenger & Anderson, Inc. has not approved or endorsed any of this third-party content. For the full Terms & Conditions of using the Pittenger & Anderson, Inc. website, click on this link.
Pittenger & Anderson, Inc. does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Additionally, the information presented here is not intended to be a recommendation to buy or sell any specific security. To learn more about our firm and investment approach, check out our Form ADV.
To view this article and others like it online, visit the P&A blog at https://pittand.com/blog/.
Click here to download the PDF version of this article.
