Advisors should advise women to have an emergency fund to pay for unexpected expenses if they are suddenly managing the home. “Every woman needs money set aside. ... Women need that security blanket,” she says.
One of Foss’s clients started saving when she learned her husband had lung cancer. Shortly after his death, a home repair was needed and she had the money to pay for it without stressing out over it. Since then she has continued to build the fund and now has an emergency stash to draw upon.
Advisors also should warn widows and divorcees to not make any rash or hasty decisions. “Women sometimes feel compelled to do something. Advisors should tell them to sit tight,” says Foss. “Sometimes the best action is no action. You cannot make good decisions when you are stressed.”
Divorcees usually have more time than widows to plan their finances, but both need a financial advisor to take the emotion out of financial decisions, says Foss. “I love my clients and their families, but when it comes to their money, I am not emotional,” she said.