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LGBTQ+ financial planning tips
June 21, 2024
LGBTQ+ people want to be treated like everyone else. But when it comes to financial support, they may have needs that differ from the general population. Here are eight financial planning tips for LGBTQ+ individuals.
When it comes to financial planning, the needs of many LGBTQ+ individuals are largely the same as others: They aspire to achieve financial freedom.
But there are some variations. If you’re starting a family, saving for retirement, budgeting for healthcare needs, or contemplating a philanthropic gift to a favorite cause, a financial plan can help you work toward realizing your goals.
8 financial planning tips and resources
Here are some examples of how financial planning can help you achieve financial freedom and allow you to live life on your terms.
1. Work with a financial professional who understands your needs.
Talking about financial issues requires frank discussion, so find a financial professional you can trust and confide in. You’ll want to work with someone who listens and can translate your goals into a financial plan that matches your needs and expectations.
“[LGBTQ+ clients] want to work with someone that gets them and understands their culture,” says Robb Clasen, Wealth Management Advisor with U.S. Bancorp Investments. “They want to feel heard, understood, and valued.”
Additionally, if you need help with financing a home, family planning resources, business grants or other professional resources, a financial professional can help steer you toward dedicated and reputable resources that can help.
2. Reap the financial benefits of marriage.
According to the most recent Census Bureau, same-sex married couples now account for more than 710,000 households1 in the U.S. and have the same advantages as other couples: more than 1,000 federal benefits—as well as state benefits—in everything from income taxes and Social Security to health insurance and estate taxes.
If you’re recently married, it’s a good time to build a financial plan together that takes such benefits into consideration.
3. Ensure your loved ones are taken care of.
No one can predict the future, so an estate plan that lists your beneficiaries and outlines your wishes regarding financial matters is important to establish now—in advance of any unexpected circumstances.
A financial professional can help you find the legal assistance you need to set up a will, healthcare directive, and other essential documents that individuals depend on to ensure their loved ones are taken care of.
4. Fund your path to parenthood.
For LGBTQ+ families starting or growing their family may involve adoption, foster care, reproductive technology or other paths to parenthood. Some of these options come with substantial costs.
“Adoptions and IVF are extremely expensive,” Clasen notes. The adoption process can cost anywhere between $25,000 to $48,500, depending on if you pursue private adoption or independently.2 The price of in vitro fertilization may be as much as $17,000 per cycle.3
But don’t give up on your dreams of having a family just because of the financial hurdles. A financial plan can help you expand your family without weakening your overall financial picture. Working with a financial planner can ensure that parenthood is balanced with your other financial goals.
5. Finance your healthcare.
Medical treatments come with high costs if your insurance doesn’t cover them. If you are considering any type of medical treatment, including gender-affirming surgery, it’s a good idea to speak to a financial professional who can help you explore saving options and funding sources, such as Point of Pride’s Annual Transgender Surgery Fund.
6. Open the door to homeownership.
Homeownership is seen as a stable investment as well as a great way to build generational wealth. A U.S. Bank survey found that gay men (77%) and lesbians (65%) are more likely to own a home than non-LGBTQ+ individuals (64%).4
A financial professional can connect you with a reputable mortgage lender and help you prepare for homeownership and plan for expenses associated with closing, moving, maintenance, and more.
7. Prepare for retirement.
A financial professional can help you determine how much you should save to meet your retirement goals. You’ll need to save more, for example, if you intend to buy a second home or travel internationally.
“Travel is a big thing that many LGBTQ+ people gravitate toward,” says Christian Tran, Wealth Management Advisor with U.S. Bancorp Investments. “They typically have more disposable income, and they want to travel after retirement.”
8. Fund a cause you care about.
LGTBQ+ individuals often develop close relationships with organizations over the course of their lives. Such organizations help them explore their passions—art, theater, sports, education—and provide them with access to a community that supports them.
Once someone reaches retirement age or achieves a level of financial success, they often wish to repay their debt to such organization. If you have an organization you’d like to support with charitable contributions, a financial professional can help you determine the most efficient way to do so.
Plan for a brighter future, lived on your terms
Financial planning is a critical tool for anyone who wants to better manage their finances and plan for the future. For the LGBTQ+ community, financial planning is also a way to strive toward the life you’ve envisioned for yourself.
These LGBTQ+ financial planning tips are a start, but also consider working with a financial professional who understands your values, dreams and circumstances.
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