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Investing — Part VI
Re-evaluate Your Portfolio
Understanding, and maybe re-evaluating your investment portfolio is another important step in taking charge of your finances following the death of a spouse. It is likely that your objectives, income needs and risk tolerance have now changed and your portfolio will need to reflect your new needs.
Additionally, you will need to change the name on any accounts held jointly to yours alone. This may require a letter from the estate’s executor (or trustee if the assets were held in the trust), as well as a copy of the death certificate. You will also need to contact your financial institution and send a letter of request with your Social Security number.
Educate Yourself
Regardless of how the market fluctuates, history tells us that investing has been shown to provide it’s responsible participants with attractive long-term growth and income. From equities, fixed-income, annuities and beyond, these kinds of strategies can prove more important than ever as a potential major source of income in the wake of the loss of a spouse.
Many women are intimidated by the prospect of taking an active role in their investment portfolio simply because they do not understand it, so educating yourself on the basics of investing is a crucial first step in managing this aspect of your finances. In fact, one survey showed that 56percent of women said they were not very knowledgeable about investing, yet 85 percent indicated a desire to learn more on the subject.
For more information on investing please visit our Learning Center. There you will find courses on investing in the US markets, international markets and more
Conclusion
Almost every aspect of a person’s financial situation should be reviewed upon the death of a spouse. Despite the value of being proactive, it is often advisable for the surviving spouse to limit his or her initial efforts to issues such as making funeral arrangements, collecting necessary documents, and contacting advisors. Then, when the surviving spouse has had some opportunity to recover emotionally, aspects such as insurance, budgeting and credit management, retirement planning, investments, employee benefits, tax planning, and estate planning should be reviewed.