Financial Planning for LGBTQ+ Community
Financial planning for the LGBTQ+ community can come with specific considerations, especially when it comes to family planning, healthcare, and other expenses.
Whether you’re currently coupled or looking toward your future without a partner, here are five key financial tips for the LGBTQ+ community.
1. Take control of your estate and retirement plans.
It’s good advice for anyone: Be proactive about your estate planning. However, as a member of the LGBTQ+ community, you may want to take additional steps to ensure your wishes are honored.
Don’t delay putting together a will or a trust that details exactly how you would like your assets distributed when you die. Remember to designate both financial and healthcare powers of attorney who can one day make decisions on your behalf.
This is particularly important if you wish to include your chosen family in your plans: Without the right documentation in place, your assets and end-of-life care decisions could fall to your next of kin. If you’re worried about facing hostility from unsupportive relatives, an ironclad estate plan can help provide peace of mind.
2. Budget for becoming a parent
There are many paths to parenthood, and depending on the one you choose, the costs can add up quickly. Whether you pursue adoption, IVF, donors, surrogacy or another route, it may cost many thousands of dollars to become a parent.
Begin saving early if starting a family is on your radar. Compare the costs of different paths to parenthood to calculate how much you need to save to reach your goal.
Beyond the initial expenses of becoming a parent, get to know the costs you’ll encounter while raising a child. These include health insurance, childcare expenses, education, and more.
3. Get acquainted with your health insurance plan
If you have specific health care needs, do your research on health insurance coverage before choosing a plan. Some plans include exclusions that allow them to deny coverage for certain charges, including gender-affirming care for transgender people.
If you already have insurance, consult your Summary of Benefits and Coverage to see what your plan will and won’t cover. If you’re not sure whether your insurance provides the coverage you need, reach out to your plan administrator directly.
4. Work with a financial expert in your state
Although same-sex marriage is legal across the U.S., anti-LGBTQ+ legislation continues to pass in many states. A trusted financial advisor can keep you up-to-date on local laws and regulations that could impact your finances.
Find an LGBTQ+-friendly financial expert by asking for recommendations from friends or searching online. A professional can also help you shore up important estate planning documents or refer you to an estate planning attorney.
Looking for more guidance? Learn about money management for every stage of life, whether you’re fresh out of school or nearing retirement.
