Why Couples Need to Anticipate an Unexpected Death

It's not a fun topic, but it's one of the most important things to think about as you plan for retirement.
When couples plan for retirement (whether they’re married or not), it’s critical to understand how each person’s finances contribute to the household. While many couples have two sources of income and assets, an income source might go away when one of the household members dies.
So, what happens to the survivor in that situation?
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Couples often plan for longevity. That’s smart, as you need to ensure that your assets will last your entire life. But it’s also smart to explore what happens if one of you dies at an earlier-than-expected age.
In many cases, you lose a source of income at the first death. Or, your income might shrink somewhat. For example, even if a survivor takes over the larger Social Security benefit for the household, the total household income might decrease. It’s critical to understand exactly how that impacts the survivor.
More reading:
www.approachfp.com/couples-ea...
Another challenge is when the household finances are overcomplicated. Keeping things simple has a number of benefits, and that’s true when a survivor is left to deal with household management tasks that they never dealt with before.
If you’re the “financial manager” of the household, does the other person understand where everything is and how it works? If not, you may have a looming problem.
Finally, you’ve likely heard about the so-called widow’s tax trap. When somebody inherits pre-tax assets and ends up in a single tax-filing bracket, problems may arise. A high income could affect their Medicare premiums (IRMAA), income tax bracket, Social Security taxation, and more.
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Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.
CHAPTERS:
0:00 Couples and Retirement
0:40 Early Death
04:33 Complicated Finances
7:03 Higher Income for Survivor
IMPORTANT:
It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.

[@davidfolts5893]

Thanks for the great content, Justin! Simplification for the spouse less involved in the finances is an excellent suggestion! Da Vinci: " Simplication is the ultimate sophistication."

[@ApproachFinancial]

They say opposites attract, and I've seen that plenty of times. That's a great quote, too, thanks!

[@punisher6659]

Love the content. Fan from St.Louis. I've watch your previous content. Found your channel a few months ago. This channel will be in play when I get married. My 457 is a Roth. I'd rather pay now than