3 Things 11-3-25

Thing One

Leave Your Spouse A Financial Roadmap

We recently read a WSJ story about Alice Nakhimovsky, a 75-year-old retired professor who was left scrambling (for a whole year) to decode her late husband Sasha's financial world after his sudden death.  While sharing the details of Mrs. Nakhimovsky’s story, the article's author highlighted how common it is for one spouse (often the husband) to handle all investments and bills, leaving the survivor overwhelmed.  That observation is backed by a 2024 Thrivent survey showing just 48% of widowed women felt prepared to manage finances post-loss. Mrs. Nakhimovsky’s year of frustration (including literal screams at confusing accounts) doesn't have to be anyone's story. Here's how couples can avoid it:

·       Build shared financial literacy early: Don't let one partner be the sole "finance whisperer." Schedule regular "money dates" to review budgets, investments, and bills together. Alice wishes she'd learned the basics sooner—start with free resources like Khan Academy's personal finance course or apps like Mint to demystify terms like "brokerage accounts" or "401(k) rollovers."

·       Create a master "financial roadmap" document: Compile a single, secure file (password-protected PDF or shared Google Doc) listing all accounts (bank, retirement, credit cards, insurance), logins/passwords, account numbers, and contact info for advisors/brokers. Include locations of key docs like deeds, wills, and tax returns. Update it quarterly and store copies in a safe deposit box or with a trusted family member.

·       Set up joint access where possible: For critical accounts (e.g., utilities, mortgages), add your partner as a joint holder or authorized user. For investment platforms like Vanguard or Fidelity, enable multi-user access or designate a trusted contact. This prevented Alice from weeks of phone tag with providers who wouldn't share info without proof of authority.

·       Strengthen your estate plan now: Ensure you both have up-to-date wills, living trusts, powers of attorney (financial and medical), and beneficiary designations on life insurance/IRAs that name each other (or backups). Review annually or after life changes. The article notes how outdated beneficiaries can lock funds away unexpectedly.

·       Designate an "emergency financial quarterback": Appoint a trusted advisor, attorney, or family member as a point person for the survivor. Alice relied on a financial planner post-loss but having one all along could have helped her avoid some headaches.

·       Practice "what if" scenarios. Example: What if one of you couldn't handle finances for a month? Solution: Have the less-involved partner pay a few bills solo or shadow a portfolio review.

·       Secure digital and physical backups: Use a password manager for online assets, and photograph/scan all key paper documents and store them in a safe and accessible place (like your home or the cloud). Also, notify Social Security and employers of the plan for immediate benefit transfers upon death.

Implementing these won't erase grief, but as the article emphasizes, they can turn a nightmare into a manageable transition. If you're in a couple, tackle one item this weekend—your future self (or your spouse's) will thank you. 

Thing Two  

A Letter From A Happy Medigap Customer 

A recent Wall Street Journal article discussed, as we have multiple times in this newsletter, the pros and cons of Medicare Advantage plan versus a Medicare Supplement plan (Medigap).  Rather than summarize what was said in the article, we thought we’d share one of the replies in the comments section that accompanied the article.  See below:

“When I reached Medicare age, I decided to go with Medigap because of the horror stories I had heard about Medicare Advantage Plans, and I have been very happy with my coverage. Yes, it costs more for Medigap (my husband and I pay around $170/month and another $55 for Part D), especially since some Advantage plans cost basically nothing per month. However, you get what you pay for as some of my friends found out who decided to go the Medicare Advantage way because of the cost. Now, it will be even worse for many of them. In addition, in most states, you have to go through medical underwriting to switch to Medigap, so you might not be accepted or pay more for your existing conditions. Word to the wise - if you can afford it, go with Medigap, not Medicare Advantage when first signing up.”

For those who are unfamiliar with the “horror stories” alluded to above, they typically involve slow pre-approval of care or outright denial of service for medically necessary issues.  And, as the author of the post said, those issues may get worse as costs rise and networks shrink.  

All of this is food for thought if you or someone you know is in a Medicare Advantage plan now or are nearing the time to sign up for one.

We should note two things.  One, not everyone who enrolls in a Medicare Advantage plan experiences so-called horror stories.  In fact, for many it works out just fine.  Two, if you can pass medical underwriting, you can switch to a Medoigap plan even after your guaranteed issue period, which happens when you turn 65, provided there is a valid election period underway like AEP (October 15 - Dec 7) or OEP (Jan 1 - Mar 31) or if you qualify for a SEP (Special Enrollment Period).

Let us know if we can help. 

Thing Three

Just A Thought  

“Life’s tragedy is that we get old too soon and wise too late.” —Benjamin Franklin