How should I invest my late husbands life insurance policy?
My husband recently passed away and we are dealing with the grief. Fortunately, we had purchased some life insurance a few years back. I have a large sum of money that I need to put somewhere, but I don't know where. My husband was about 10 years from retirement and we have a few other accounts, but I could really use the advice.
So sorry to hear of your loss. What an overwhelming time for you. I am not sure how involved you were with the investment making decisions before losing your husband, regardless once you are in a place that you have the time and energy I would recommend interviewing a few financial advisors. It would be difficult to give you any specific recommendations without looking at your entire financial picture.
Also, if you have other investment accounts those should be analyzed before making any recommendations. There are a lot of questions that would need to be addressed so take some time for yourself then take your time finding the right financial advisor.
Dear Dealing With Grief of Loss,
My heart goes out to you with the loss of your husband. My thoughts and prayers are with you.
In the weeks following your husband’s death, move slowly but be diligent in your actions. You may not feel normal again for a long time, grief takes time. Allow this. You will be forced to make dozens of decisions on your own. You need to get a grip on your finances quickly to ensure cash flow, to meet timelines, and to collect death benefits owed you and your family.
Though well meaning family members may come to your aide, it is best to utilize trusted advisors who become non-emotional counsel. With a roadmap of tasks you must accomplish, devote time each day to urgent financial tasks, meeting deadlines, staying on track. Accomplishing one task a day, the payment of a bill, organization of essential papers, which will provide a semblance of order. This is empowering!
Stay Strong! Don’t make huge financial decisions soon after your husband’s death. Refrain from spending large amounts. Refrain from investing lump sum insurance or pension distributions for at least six months, and ideally wait one full year. Although you may be encouraged otherwise, place distributions obtained from your husband's life insurance policy directly into a money-market fund, short-term certificates of deposit or Treasury bills.
Avoid making major life-altering decisions when you are in a state of emotion or grief. Take care of yourself, your health, your family, your spirit! Take time, to gain confidence and consider all your options carefully. Go about your day-to-day routine as much as possible before making major changes. As you move into your new life, understanding how this affects your life and the life of your family once immediate decisions have been taken care of and you’re in a better place emotionally, you can gracefully move onto the decisions with long-term financial implications.
Should you need assistance or support please contact me at the contact information below.
Jan Attard, MBA, RIA
J. Oliver Maxwell, LLC
I am truly sorry for your loss. It seems as if you were planning for golden years together and now, that will be just a dream. When you do experience a dramatic life event, such as yours, it is very hard to make a decision and do the "right" thing. If you are like others that I have helped, no matter how hard you focus, your mind is elsewhere.
The advice that may be best is simply do nothing - place the money in a bank and earn the 1percent plus and take many months to look at your life and see where you are and need to be, You might want to find a qualified financial advisor, one who acts in your best interest whether it is planning or investing, and go through the process of creating a roadmap for the future.
They can work with you and look at your current situation, cash flow needs and future needs, and perhaps construct a risk-appropriate portfolio for you. Don't be afraid to allow someone to provide guidance but also, don't cede control.
I am sorry for your loss. Who handled the finances in your household, including investments? If it was your husband, then you should find someone you trust and ask them to recommend a Registered Investment Advisory (RIA) firm. RIA's must act as fiduciaries and not sales people. This is more important than the "fee only vs commission" debate. Consult with them and they will help you. If you dealt with the investments, then I would give it some time. I always recommend putting off big decisions for about 6 months. Give your heart and brain the opportunity to work through your loss and then you can consider what the best options are for you.
I think to answer this question, proper planning needs to be done. What are your living expenses on a monthly basis? What are your income sources eg: pension, social security, etc. From there a plan can be developed to make sure your portfolio is providing you the income you need, and taking enough, but not too much risk so you don't outlive the money. Your money is a tool to accomplish goals, its not a video game looking for a high score, so a proper comprehensive financial plan is your first step!