Financial Planning Considerations for LGBTQ+ Individuals and Couples

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LGBTQ+ individuals and couples face unique financial considerations when planning for retirement and important life events. Francis is here to help you navigate them.

The CFP Board mentions, “Financial planning strategies can be complex for LGBTQ+ couples; to begin, where you live matters. For example, not all states have robust anti-discrimination laws, which are important for access to healthcare, earnings opportunities, and retirement savings at a minimum – all of which are critical for financial planning.”

In addition to these important factors, here are a few financial planning tips to consider as you plan for your future:

  1. LGBTQ+ couples must understand their financial condition and budget accordingly. Though managing money as a couple is an experience shared across relationships, it can be more challenging for LGBTQ+ couples who tend to report lower household annual income than adults nationwide. It’s important to put a budget into place and stick to it.
  2. Consider your long-term care needs. Because fewer LGBTQ+ couples have children and many fear discrimination in nursing homes and assisted living communities, consider long-term care insurance to help cover the costs of your care as you age. This may take the form of an in-home caregiver, with which higher costs are associated.
  3. Develop a savings and investment plan (for retirement and other things too). Many LGBTQ+ couples have a hard time saving because they often face higher expenses on a variety of fronts (i.e. family planning, adoption, etc.). Saving for retirement should be a priority along with planning for big milestones like buying a home and building a family.
  4. Protect your income, family, and assets. Significantly fewer LGBTQ+ individuals have disability or critical illness insurance. This insurance is key to ensuring that you and your finances can stay on track if an emergency occurs.
  5. Establish an estate plan and will. Compared with 33% of the general population, only 20% of the LGBTQ+ community have a will or estate plan. Having a durable power of attorney is especially important in for LGBTQ+ people because it can help ensure the person you want has the power to make decisions on your behalf. 

Though these are just a handful of financial planning tips and recommendations, this is a great place to start.

At Francis, we value diversity in all forms and celebrate the unique voices of our team members and those we serve. We strive to create a culture of authenticity and belonging where everyone, from any background, feels valued and supported. We recognize that we have a lot of work to do and remain committed to moving our Firm forward.

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