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The Baby Boomer News does present the following information; helpfull assistance, for alternative lifestyle participants.
Committed Gay and Lesbian Partners can Overcome Personal Finance Barriers
So, it's the day of a baby boomer commitment ceremony. You're surrounded by your loved ones, the food is top of the line, the reception will be a blast -- all is well with the world. Except for one thing: you and your partner continue to avoid talking about the "M" word. "M" as in money.
Even if there is no official commitment ceremony, gay and lesbian couples are increasingly forming long-term domestic partnerships and families. As such, they face the challenge of managing their money and planning for retirement. And, like straight couples, many long-time gay and lesbian relationships will break down because of a lack of trust that grows around the topic of money management.
Talking about financial planning can be difficult for any couple -- gay or straight -- but because of their unique legal status, gay and lesbian couples face a number of additional obstacles, according to Randy Schuldt, vice president with IHateFinancialPlanning.com, a new Web site geared to the more than 75 percent of Americans who hate financial planning.
For gay and lesbian baby boomer couples, in a committed relationship, the two most important aspects of financial planning involve securing a will and a power of attorney.
A power of attorney allows a partner to make decisions and act in the event the other partner becomes mentally incapacitated.
A will ensures that the deceased partner's wishes are carried out.
Beyond these two important components of financial planning, Schuldt says gay and lesbian couples need to carefully think about a number of other issues, such as beneficiary designations, joint property ownership, tax planning, and record keeping.
"Whether you're gay or straight, don't assume your partner knows what they're doing when it comes to financial planning," says Schuldt. "They may be just as in the dark as you. Teamwork is the key. You both must take an active role in understanding financial planning issues so you can make educated decisions."
Many couples have difficulty talking about money, adds Schuldt. That's where a financial planner can come in handy.
A financial planner can serve as a neutral moderator, who can help both partners come to an agreement on financial issues that are too difficult to discuss at home.
Schuldt offers some additional financial planning tips for gay and lesbian couples:
Find a GLBT-friendly financial planner.
Not all financial planners are alike. Increasingly there are planners who specialize in the needs of specific communities, including women, African-Americans, Hispanics and Latinos, and yes, gay and lesbian couples.
In particular, seek out a financial planner who is familiar with estate planning issues related to non-married couples.
To find a GLBT-financial planner, start talking with other gay and lesbian friends; check your community's local gay and lesbian newsletters and magazines; and don't forget to check the bulletin board at your favorite coffee house.
Also, some churches openly welcome gay and lesbian couples, and distribute church bulletins that may list GLBT-friendly financial planners.
Think retirement.
With the spread of HIV during the late 1980s and early '90s, it's been difficult for gay men and lesbian women to even think about retirement.
However, with better drug therapies and the trend for gay and lesbian couples to embrace exclusive partnerships, retirement is very much a reality for many couples.
This means gay and lesbian, baby boomer, couples need to make goals about how they want to live when they retire and determine if they're saving enough money to achieve that lifestyle level.
Develop a financial plan.
Like any individual or heterosexual couple, gay and lesbian couples in a lifelong commitment should sit down and map out a financial plan. A couple should set specific goals (home ownership, vacation property, college education, retirement, etc.), review how they're using various financial tools, and decide jointly how they'll merge their finances and make future financial decisions.
Maintain separate records.
Because gay and lesbian couples must file separate individual tax returns, it's essential that each partner maintain accurate records year-round. For example, if, as a couple, you actively make contributions to a charitable cause, think ahead about who will use that contribution to lower their overall tax bill.
Get life insurance.
If you and your partner are relying heavily on a defined benefit retirement plan through your current employer and/or Social Security, know that not all organizations allow a gay partner to be treated as a surviving spouse under the current law.
The Social Security Administration only extends a deceased person's Social Security benefits to a married spouse.
This could leave the surviving partner without sufficient resources.
Life insurance (where your partner is the beneficiary) may be the way to plan for this contingency.
In addition, if one partner owns a home and the other partner lives there (without paying rent), either the home-owning partner should extend their property and liability insurance to cover their partner, or the non-home owning partner should obtain insurance to cover their own property and liability.
Obtain the necessary documents.
When a mate in a heterosexual relationship becomes ill, faces a medical crisis or dies, decisions are made by the legal spouse and closest kin, such as an adult child or parent.
But for gay or lesbian people in a committed relationship, the law does not assume the same. A partner may find him or herself barred from making life decisions on behalf of a partner in favor of a parent or sibling.
To avoid this, it's important that gay and lesbian couples obtain a number of documents -- while they're healthy.
These documents include a durable power of attorney for health care decisions, a durable power of attorney for financial decisions, a living will, and a last will and testament.
For help obtaining these documents, see an attorney. Contribute the maximum.
Because of beneficiary issues related to life insurance and Social Security, it's critical for baby boomer couples to contribute the maximum amount to traditional retirement vehicles, such as 401 (k)s, 403 (b)s, and IRAs.
As you near the time to begin withdrawing funds from these vehicles, develop a disciplined withdrawal schedule that protects both partners in the event that one or the other dies prematurely.
Develop a support network.
Many heterosexual couples rely on children and family members to assist them as they become older.
Gay and lesbian couples may lack that family-like structure as they become older and need help. Therefore, it's important for gay and lesbian couples to factor in to their retirement plan the additional expense that may be incurred to hire help -- even for traditional day-to-day household chores.
Make it joint.
To ensure that your partner has enough money, a home and a car, in the event of an untimely death, gay and lesbian couples in committed relationships should consider changing ownership of property from sole to joint ownership, with the right of survivorship going to your partner.
Start saving for college.
Increasingly, gay and lesbian relationships are blossoming into full-fledged families.
In some cases children come from previous heterosexual relationships in which a partner was involved.
In other cases, gay and lesbian couples are successfully adopting children.
Regardless, gay and lesbian parents should begin saving as early as possible to accumulate funds for college education needs
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