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FINANCIAL PLANNING
SUCCESSFUL PLANNING GUIDELINES FOR SPOUSES
For the time I’ve worked in the financial indus- try, I’ve found that some of the best people
to do business with are financially independent
women. In many cases, however, there is a one- sided male dominance in the financial matters of a marriage. Within this article I’d like to shed some light on why it’s important for both par- ties to have an understanding of their finances as well as the family business, and how it can potentially save you a great deal of stress and missteps in the event of a death or divorce.
ENGAGING
It is common for a woman – or a man – to be thrust into the primary decision maker
role after the passing of their spouse. We see
this happen several times per year and the consequences can vary widely from one person to the next. We’ve come to find that the common denominator to successful outcomes is always whether the remaining spouse was involved with the financial planning and business decisions.
In later years, 80% of women will be single, resulting in increased responsibility and a need
to manage their funds independently. Often, those individuals who are unprepared when
they lose a spouse transition into something I
call the “freeze.” What this means is that these people completely lock up. They refuse to trust anyone and fail to consider how their kids, grandkids, and even their horse operation will
be affected by their actions. My goal is to help those of you reading this to prevent the freeze and help you understand how important it is to be involved with the family business and finances. Fortunately, there are several success stories
where spouses I know were put into the primary decision maker role unexpectedly and were able not only to sustain the family business but also to create opportunities for it to thrive as well.
CONNECTING
Perhaps the biggest key to finding success after a loved one’s disability, death, or even divorce is being involved right now. There
are several ways to stay in the loop and gain the necessary knowledge to carry on in the case of one of the events I listed above. First, become involved in business meetings. When there are meetings with trainers, profession- als, or anyone that is discussing your business, I’d highly encourage you to attend. Also, in the event that you are required to take over
as the primary decision maker, align yourself with people you can trust. “We were fortunate to have help from Mike Stuart after our dad passed away. The Jess You And I breed was actually his idea,” says Dawn and Rhonda List of Double Bar S Ranch, 2-time Champion Owner. This stuck out to me because it shows how important trust can be after a traumatic experience such as losing your father. In Dawn and Rhonda’s case, their father was the primary decision maker, and they had a tremendous amount of responsibility fall on their shoulders. Making things happen isn’t always all about you. Often times, others can play a big role in the sustainability of your business. Another option that is often reliable is reading books. Staying up to date on business tactics and strategies is a great way to help your future self. With the likelihood of being in charge one day, knowing your way around the balance sheet can be instrumental to the future growth of
the business. Lastly, have regular discussions regarding the short- and long-term goals of the family business. You will be much better off if you are working toward a specific goal. There are several steps that need to be taken care of after the primary decision maker is deceased. Some of those steps include developing a new
budget and cash reserves, updating beneficiary designations, reassessing insurance needs, establishing accounts in your own name, etc. Many of these questions can be answered by your financial planner. By staying involved with your household’s finances, you can make this process much easier. On average, women live 4.9 years longer than men. It is likely that the steps I mentioned will have to be completed at least once due to the life expectancy differen- tial. The reason I stress this is because financial planning is about more than your goals and how much you save/invest, it’s about you. You have specific wants and needs that are com- pletely unique. If you are financially indepen- dent, I’d encourage you to find out what you want your retirement to look like, then reach out to your financial advisor to discuss how you are going to get there. Janet VanBebber knew what she needed to do after her husband passed. “I needed to rebuild financially. I had a desire to continue to work as a trainer and keep the stable in business. But I also wanted to pro- vide financial stability for my daughter, Taylor. This led me to creating a 529 plan in 2003
so I could pay for her future college expenses. She recently graduated from the University of Oklahoma debt-free.” This is a great example as to how knowing what you are trying to achieve can benefit you in the long run by building the path to the future you desire.
CUSTOMIZING
Staying in touch is a great first step. However, it more than likely won’t lead to growth in the business. Keeping the business growing and managing expenses won’t be easy. “The hardest part for me was rais-
ing a daughter while running a large busi- ness. I wanted to be involved with the mom
by Cade Peterson, Financial Planning Associate
74 SPEEDHORSE July 2021