By Woody Derricks

(Note from Barb Elgin:  Today’s post signals the start of new resources for you and all readers of Coach Sappho’s blog:  the inclusion of guest experts who will share with you information, tips and suggestions specially designed for the GLBT community.  Today’s post focuses in on financial concerns and was written by guest author, Woody Derricks.  Woody is a comprehensive financial planner who specializes in the financial concerns of the gay and lesbian community.)

For gay, lesbian, bisexual, and transgendered individuals, reaching financial goals frequently present unique challenges.  You may be aware of some of the issues that can affect you and your loved ones’ financial well being – others may come as a surprise.  One thing is clear: when it comes to managing your wealth, it is critical that you understand your options and opportunities – as well as potential obstacles.

If you are in a relationship, the first step is to include your partner. Because many domestic partners maintain separate bank accounts, they feel as though they should plan for the future as individuals.  I ask my clients: Do you own your home together?  Would you like to pass on a portion of your estate to your partner?  If your partner became disabled, would you provide financial support?  If the answer to any of these questions is yes, then you may want to evaluate your financial future as a couple.

Disparities in age present another hurdle for domestic partners. Frequently, partners may have a difference of 5, 10, 15 or more years between them.  Age affects the way we perceive risk with our investments and how we prepare for retirement.  Younger investors are more likely to accept ups and downs in the market as they have a longer time horizon.  Additionally, they have more time to accumulate funds for their retirement years.  For those who find themselves rapidly approaching retirement or who have already retired, the focus shifts from building for retirement to protecting those assets they have accumulated.  Balancing the need to grow with the need to protect can be a daunting task.

Other areas of concern include insurance and estate planning. You should ask yourself several questions: When I pass away, will my partner be entitled to my pension benefits?  How can I best protect my partner and myself while I am alive and after I have passed away? As we know, family members do not always look favorably on the relationship and may desire to have your assets for themselves.

Believe it or not, the Tax Code has produced some benefits for domestic partners. Due to the government viewing same-sex couples as individuals, many higher income partners find that they can contribute more to their Roth IRA’s, pay taxes at a lower rate, and have more deductions available to them than a married couple with a similar combined income.  Work with your financial planner and your tax advisor to identify each of the areas from which you could benefit.

As many look to grow and protect their wealth, they are turning to comprehensive financial planners.  Comprehensive financial planners separate themselves from traditional stockbrokers by providing their clients with thorough investment, retirement, tax, and estate planning strategies while developing a long-term relationship.  If you are in the market for a comprehensive financial planner, you will want to work with someone who understands your needs, respects your relationship, and, most importantly, someone you can trust.

Woody Derricks, the President of Partnership Wealth Management, LLC, has over 10 years experience helping GLBT individuals and couples reach their financial goals.  Click here to find Woody on Facebook.

This article is for informational purposes only and is not intended to provide specific advice to any individual.  Consult your legal, tax, and/or financial advisor to determine what is appropriate for your situation.

Securities offered through LPL Financial, Member FINRA/SIPC.

I know it’s been a tough week for equality, fairness and for gay Californians especially.  The rest of the country is looking on, and doing all it can to be supportive.  That includes me, here in Florida.

I posted to a lesbian relationship blog I read quite often earlier today.  The blog’s creator lamented her frustration with the California decision and suggested perhaps we should stop wanting marriage and accept civil unions.

That’s a ‘mental space’ I’ve fallen into as well, at times.  That’s just what those who thrive on denying people civil rights want us to do.  That’s where I was back last year when I invited Evan Wolfson, from Freedom to Marry, to Coach Sappho’s podcast.  I was feeling defeated about gay marriage and, it’s chances of ever becoming the law of the entire U.S.

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