Contributed by: Sandra Adams, CFP®
Life happens…someone we love passes away, we are diagnosed with a life-threatening illness, we are involved in a horrible automobile accident that totals our vehicle and makes us scared for our lives. And then, to add to the stress, we need to make a significant financial decision. How can we do that when we are completely traumatized and overwhelmed?
Take an intentional time out—called the Decision Free Zone—to ensure you get your mind clear, your emotions settled, and your financial goals clear before making any big financial decisions.
Acknowledge the impact of your trauma — understand how your trauma experience may be influencing your financial decisions, and be intentional about putting off big decisions until you feel ready to do so with your future purpose in mind.
Prioritize self-care – whether it is taking time to grieve, making sure you get the proper medical or psychological treatment, or just taking time to rest, relax, and recover from the traumatic event, take care of yourself first before pressing yourself to make significant financial decisions.
Communicate – Talk to a trusted friend, partner, family member, or professional about your financial concerns or challenges — do not try to manage the stress alone. It is also important to let others know that it may be a while before you are ready to make big decisions so they are not pressuring you based on their timelines.
Set boundaries – like the above, set boundaries based on the timelines you feel comfortable with, not with the timelines others are pressuring you to stick to. Only make decisions when you are ready to make them.
Seek professional help – Find a professional partner, like a financial advisor trained in transition planning, who understands your need to take your time and can help you through your trauma and transition.
When you have experienced a traumatic event, it is important to be patient with yourself and to make sure to take the proper steps to heal and prepare yourself before making big financial decisions. By taking the appropriate steps and aligning yourself with the right financial partners, you can overcome the trauma and come out the other side making solid financial decisions. If you or someone you know has been through a traumatic event and is struggling with financial decisions and could benefit from some assistance, please send them our way. We are always happy to help.
Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.
Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.