Financial Challenges In The LGBTQ+ Community
“We’ve got Grindr. We’ve got Tinder. This is Zellweger. It’s for gay guys who just want to talk about actresses, then go to bed.” - BROS
written by Billy Eichner & Nicholas Stoller, directed by Nicholas Stoller
(4.5-minute read)
Finding quality, trust-worthy financial advice has historically been a challenge for those in the LGBTQ+ community. The right Financial Planner can play an important role in determining your future.
Though LGBTQ+ people have the right to marry in the U.S., marriage equality is not a cure-all for financial issues. 48% of LGBTQ+ Americans have experienced discrimination by someone in the financial industry. Unsurprisingly, some may struggle to find a Financial Planner whom they trust to reveal their most treasured goals and dreams.
PARENTHOOD
Everyone’s decision to raise a family is a personal one. Matters of the heart generally come before financial ones. But financially speaking, LGBTQ+ individuals usually have more to consider when it comes to starting, or expanding, their family.
According to the U.S. Census Bureau, nearly 15% of same-sex couples in the U.S. have at least one child under 18 in their household. But 63% of LGBTQ+ Millennials are thinking about expanding their families, either with their first child or by having more. That’s a lot!
Sure, it costs money for heterosexual couples to have children. But it pales in comparison to what the LGBTQ+ community may have to pay. We’re not talking about caring for the child. This is to create a family. Adoption and surrogacy can cost tens of thousands of dollars, if not over a hundred thousand.
Methods considered for LGBTQ+ parents are IVF (in vitro fertilization), foster care adoption, private adoption (domestic and international), and gestational surrogacy. Foster care adoption is the least expensive of the options, usually costing less than $10,000. But this doesn’t include possible additional attorneys fees. Private adoption usually starts around $25,000 but quickly increases from there. When opting for private adoption, constant travel can become a bigger expense than first imagined. International adoption will take that price even higher. According to THIS INVESTOPEDIA ARTICLE, the average cost for a surrogate is around $100,000.
RETIREMENT
LGBTQ+ individuals have the same concerns as many Americans when it comes to retirement. Issues such as outliving our savings, health care costs, and living arrangements are on the short list. So why is this more of a concern for LGBTQ+ people?
Many heterosexual retirees can count on their adult children to help care for them. Since fewer LGBTQ+ couples have children, statistically there is less likelihood of receiving such assistance.
We’ve come a long way in terms of acceptance. But let’s not kid ourselves; discrimination exists everywhere. If you were born before 1950, and are gay, then it’s understandable that you would fear discrimination in a senior center. Trying to find the perfect assisted living facility is challenging enough when you don’t have to worry about such things. In order to find a place where LGBTQ+ seniors are most comfortable, the costs can be higher. Places with legal protections often come with a higher price tag.
LEGACY
Many Americans are generous and would like to make an impact within their lifetime, after they’ve passed, or both. A study conducted by Bank of America found that affluent LGBTQ+ individuals are more likely to have at least one charitable provision in their will, as well as having private foundations or donor-advised funds.
Married couples can pass assets to each other rather easily. But the vast majority of LGBTQ+ individuals are not married, which makes estate planning a crucial part of planning for your future. LGBTQ+ individuals are more likely to be estranged from their families. Quite often there will be at least one relative who is unsupportive. That family member could contest a will, or start a custody battle over nonbiological children.
HOW TO PROCEED
If you are LGBTQ+ here are a few helpful tips to try and find the right Financial Planner:
Look for a Financial Planner who honors and respects your name and pronouns. This can be done by looking at their email signatures or social media bios. Some may ask during the first meeting or within any forms you fill out. If their website isn’t afraid to show images of same-sex couples, this can also be a small sign of acceptance.
Make sure they take your privacy seriously. Ask to see their Privacy Policy or have them explain their security measures to you.
Ask questions. Good Financial Planners need to know certain details about your life and your goals. If you’re unsure why they need this information, just ask. Hopefully they can give you an honest, appropriate reason.
Find out what kind of experience they have with the LGBTQ+ community. Determine if they’re only catering to this group for marketing purposes or if they genuinely want to help.
Listen to your gut. Does this Financial Planner make you feel comfortable? Do you feel like they listened to your unique concerns?
Planning for your financial future is incredibly important. Hiring the right Financial Planner who understands your situation is a major decision. It can be more stressful for same-sex couples and the LGBTQ+ community. But knowing your specific needs, and finding an advisor who “gets it,” doesn’t have to be a daunting task. By implementing some basic due diligence, both you and your Financial Planner should feel comfortable taking steps to achieve your goals.
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