Hey, LGBTQ families and retirees, stop stressing!
What is the financial “state of the American family”? What concerns do LGBTQ families share with our heterosexual peers and how do we differ? Is the queer community ready for a retirement that allows us to live beautifully into our golden pond years?
Hear how LGBTQ families and retirees can sleep at night
Learn more about the situation of LGBTQ families and retirees
Lisa Campbell and Stephen Brokaski are marketing consultants at MassMutual, a life insurance and financial services company dedicated to helping policyholders and customers achieve their financial goals.
Today, Lisa and Stephen join us to discuss the results of MassMutual’s recent State of the American Family Study and LGBTQ Retirement Risk Survey. Lisa outlines the top financial priorities of LGBTQ families and explains how to prepare for the unexpected, pay off debt, and reduce the risk of becoming a burden to your children. It covers the difference between bad debt and good debt, what can be has paid offand offers advice on making informed short- and long-term financial decisions.
Stephen introduces us to the highlights of the Retirement Risk Survey and shares our community’s concerns about health care costs and having enough money to enjoy retirement. He describes that LGBTQ respondents were more confident about their retirement readiness and more comfortable with market risks, but were less likely to work with a financial advisor. Learn the benefits of connecting with a professional who understands your individual needs and learn how MassMutual is working to earn the trust of the LGBTQ community!
The financial situation of LGBTQ families and retirees
MassMutual’s State of the American Family study.
- Seek to understand attitudes toward finance and financial planning
- Different ethnicities, economic groups and family structures
How LGBTQ respondents defined the American dream
- Financial security for me and my family
- Home ownership, not living paycheck to paycheck
The low level of trust among LGBTQ respondents
- 40% did not see the American Dream as a possibility
- Less confidence in the ability to achieve financial security
Top priorities among LGBTQ respondents
- Financially prepared for the unexpected
- Sufficient emergency fund
- Pay off debts
- Avoid becoming a burden to the family
- Confidence in financial decisions
How the LGBTQ community can prepare for the unexpected
- Life insurance
- Disability insurance
Lisa’s advice on creating an emergency fund
- Separate account with automated savings plan
- Provide 3 to 6 months’ salary
The Differences Between Bad Debt and Good Debt
- Bad debts reduce the value, not permanent value (e.g. credit cards)
- Good debt creates value and generates long-term income (e.g. student loans, mortgages)
How to prioritize paying off your debts
- List and classify debts
- Pay off the highest interest first
- Make additional payments
This will reduce the risk of becoming a burden to your children
- Initiate conversations about beneficiaries and retirement investments
- Put together a family care plan and organize information in one place
- Consult a professional about long-term care options
Lisa’s tips for short-term financial decision making
- Develop a budget and stick to it
- The aim is to reduce household expenses
- Create an emergency fund
Lisa’s tips for long-term financial decision making
- Develop a plan to pay off debt
- Save for College (Minimize Child Debt)
- Build a retirement nest egg (15x annual income)
MassMutuals Retirement Risk Survey
- Understand investment preferences and philosophy
- Survey of people who are already planning their retirement
Why LGBTQ respondents believe their retirement savings will be enough
- Plan to retire later than the general population
- More comfortable taking market risks
How LGBTQ retirees can ensure adequate retirement savings
- Avoid “bad planning behavior” (e.g. withdrawing money for big expenses)
- Work with the advisor to understand the investment risks
Why LGBTQ respondents believe they need less retirement savings
- More confident and better prepared than the general population
- Higher proportion of single respondents
The benefits of working with a financial advisor
- Find out about approach and risk tolerance
- Give discipline to processing
Mass Mutual’s commitment to supporting the LGBTQ community
- Dedicated community page on the website
- Consultants focused on individual needs
Stephen’s advice on preparing for retirement
- Find a trusted financial advisor and communicate your individual needs
- Track expenses and identify areas where changes need to be made