Several recent reports have found that the number of female breadwinners is growing. Women are often unprepared to manage a large life insurance payout or inheritance, however. The results of these reports can motivate and empower you and the people you care about to take steps toward financial confidence.
Female Breadwinners are on the Rise
According to research from the Center for American Progress, up to 42 percent of moms are the sole or primary breadwinner in their home, meaning they earn at least half of the family's income. An additional 22 percent of moms are co‑breadwinners earning between 25 and 49 percent of the family's total income.
Female Breadwinners Feel Financially Unprepared
Despite increased earnings, many women report feeling unprepared to handle an inheritance or other large financial gift, according to consumer surveys. That money could help repay debt, boost retirement savings, or cover a child's college tuition, but without a plan it may be spent quickly.
How to handle an inheritance
Based on these findings, women are encouraged to take steps to build financial confidence. With guidance, you can handle a life insurance payment or inheritance wisely.
Find a financial advisor
If you don't already work with a trusted financial advisor, make time to find one. A good advisor will be trustworthy, qualified, certified, and sensitive to your goals. Interview several candidates so you can compare compensation, confirm you're on the same page, and be confident the adviser will put your needs first.
What to look for
- Trustworthy
- Qualified
- Certified
- Sensitive
With an adviser, you can evaluate options for using an inheritance to pay debt, save, or cover expenses such as medical bills and insurance-related costs; for more on medical payment issues see Medical Payments Coverage in Auto Insurance.
When life insurance proceeds are involved, it may help to gather information specific to life policies and market resources, including Texas life insurance leads as one place to understand available options.
Wait one year
It’s often wise to avoid rushed decisions. Give yourself time to grieve, gather information, and plan. Delaying major choices for up to a year can help you make more thoughtful long-term decisions.
Prioritize current and future needs
Resist the urge to spend a windfall on only immediate wants. Balance current needs with future needs so you’re not part of the group that spends quickly and runs out of funds within a few years.
Take action
Work with your advisor to develop a specific plan with small, actionable steps. Breaking goals into clear tasks reduces overwhelm and builds confidence in managing money.
If you need assistance, ask an agent.
Female breadwinners can learn to manage an inheritance or life insurance payment successfully. Seek guidance, make a plan, and take charge of your finances.
Frequently Asked Questions
What should I do first after receiving an inheritance?
Take time to pause, confirm the amount and any tax implications, and consult a trusted financial advisor before making major decisions.
Do I need a financial advisor to handle a life insurance payout?
You don't have to, but an advisor can help you create a plan to meet both immediate needs and long-term goals while avoiding common pitfalls.
How long should I wait before making major purchases with an inheritance?
Many experts recommend waiting up to a year to make large purchases so you can plan thoughtfully and avoid impulsive decisions.