VettaFi Advisor Perspectives
By Rick Kahler
December 24th, 2024
Grief isn’t just about the initial loss. It’s also about the secondary losses that may go unnoticed but add to the impact of the initial loss. Financial loss is one of the most common secondary losses.
It’s common to think about grief primarily as a response to a single, shattering loss like the death of a loved one, a divorce, or a terminal diagnosis. Grief is rarely so tidy. The death of a family breadwinner can bring crushing financial uncertainty.
Even when the deceased was not the primary earner, grief can derail financial stability.
Survivors may struggle to work, make decisions, or focus. This impaired functioning comes at the same time a loved one’s death brings financial tasks and decisions to take care of, some of which need timely attention in order to avoid further financial loss.
The result is often a cascade of stress. Many people can be overwhelmed by not only grief but added emotions such as anger over lost financial security, guilt over accepting insurance benefits, and fear for the future. This can make it easy to fall into a cycle of avoiding financial responsibilities or making rushed financial choices.
For the financial aspects of a loss, practical support and thoughtful guidance can help someone cope in the short term and rebuild financial stability in the long term. And along their painful journey, the greatest gift you can offer a grieving person is your compassionate and patient presence.
