Financial Planning for the Single, Middle Aged Client

According to the Census Bureau, the number of single 50 to 64 years olds has increased due to increased divorce rates and higher numbers of individual who never marry. Singles 50 to 54 year olds increased from 29% in 2000 to 35% in 2010. Single 55 to 64 year olds increased from 30% in 2000 to 33% in 2010. Financial planners with single clients aged 50 to 64 should remember that differences exist in tailoring financial plans for single clients compared to plans for married couples. A few financial planning tips for middle aged single clients are below:

• Invest and save more money for emergencies and retirement. Single individuals often find it is harder to reach their saving goals because of the lower average income of an individual compared to a married couple.
• Build a retirement fund and either start Social Security early if cash is needed or wait as long as possible to help enlarge the size of the check.
• Continue working to increase savings and benefits before becoming eligible for Social Security.   
• Purchase both disability and long-term-care insurance.
• Create a revocable living trust to hold assets that a co-trustee or successor trustee can use in case of incapacitation or disability. Get a durable power of attorney for assets not transferred into the trust.
• Complete an advance medical directive that includes a living will, health care proxy, authorization to release medical records, and an organ donation card.  

For more financial planning tips for middle aged clients, see Donald Jay Korn, One and Only, Financial Planning, Jan. 1, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.