Financial Planning for the LGBTQ Community

The 2015 legislation (Obergefell vs. Hodges) afforded the LGBTQ community access of over 1,100 federal benefits:

• Filing joint tax returns

• Joint parenting and adopting

• Joint insurance policies for health, home and auto

• Spousal protections in the event of death or divorce

• Participation in benefits such as annuities, pension plans Social Security and Medicare

While these developments are positive progress, there are still a wide array of complications regarding planning for the future that remain for the LGBTQ community

The legality of gay marriage may have relieved some of the stigma surrounding homosexual couples, but complications around financial planning, budgeting, and tax filing remain prominent.

According to a 2018 report from Prudential, based off a sample of more than 3,000 Americans aged 25-70, the main financial concern within the community is saving for retirement. Despite attention to and importance of this goal, LGBTQ respondents are more likely to describe themselves as “spenders” than the general population. Meeting the goal of a comfortable retirement and lifelong financial security is hinged on the ability to budget properly and save money, so here we come to the bump in the road.  

A large factor that stands in the way of LGBTQ financial planning is the lack of legislation to protect from discrimination or being fired for sexual orientation. Currently only 22 out of the 50 states have an anti-discrimination statue that includes sexual orientation, and 28 states allow people to be fired based off their sexuality alone. The result is a lack of employment security, combined with a lack of legal protection, which ultimately looks like income variances that make financial planning a nightmare.

Marriage equality has simplified life in many aspects for the LGBTQ community, but some barriers remain when it comes to finances; many respondents still see limitations in achieving pay equality, equal job rights and benefit protections, and knowledge gaps in the financial sphere.

Nothing can completely take away all the uncertainty surrounding saving and planning for the future. However, we can focus on what we can control. By identifying our obstacles, setting goals and putting a plan of action in place, we will put ourselves in a better position to protect our families and enjoy what’s most important in our lives.

I have years of experience working with the LGBTQ community, helping LGBTQ individuals, couples and their families reach their financial goals to help secure confidence in their future. One of the most important aspects of financial planning, regardless of your sexual orientation, is finding someone who respects you, shares your values and wants to see you succeed. If that’s what you’re looking for, please get in touch with me and let’s set up a time to talk through your goals so you can feel more confident and secure about your financial future.