Planning for Single Clients

Financial planners have been preparing themselves for the baby boom, but some have overlooked another surge: the singles. The Census Bureau reported that from 2000-2012, singles went up from 29% to 35% of 50-54 year olds. For those age 55-64, singles increased from 30% to 33%.

Single clients have many similar needs to married couples, but there are a few different considerations for single clients to look at when estate planning. Connie Stone is president of Stepping Stone Financial in Ohio and she recommends that single clients should keep aiming to boost their earnings before they collect on social security to increase their benefits.

Another advisor notes that the most important thing single people should do is go ahead and obtain long-term care insurance while they still qualify medically. This will avoid a burden on family members and leave the client with the option to stay at home once they grow older and need care.

Other important things to consider are devices to help clients manage affairs if they become incapacitated. Living trusts and medical directives are two important tools to utilize. Be sure that someone is authorized to make financial and medical decisions if the client becomes incapable of doing so. Adviors conclude with a final word of caution that even couples who are going through a divorce should be looking towards their future status as singles and start revising their planning in accordance with these tips.

See Donald Jay Korn, One and Only, Financial Planning Magazine, Jan. 9, 2012.

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