Table of Contents

• Managing Debt Effectively

• Navigating Health Insurance

• 6 Estate Planning Tips for LGBTQIA+ Couples 

This Pride Month, we’ve got plenty to feel proud of – like our country’s continued pursuit of opportunity and equality for all, regardless of gender identity or ethnic background.

But if you’re not feeling proud about the current state of your financial plan, this month is a great opportunity to start turning things around. Today, we’ve collected tips in a few key areas to help you get started – inspired by some of the financial disparities that continue to impact the LGBTQ community.

Read on to learn:

• How the Avalanche method can help you manage debt,

• why health insurance doesn’t have to be as complicated as you think,

• and why you shouldn’t wait around to work on your estate plan.

Psst… Has anyone in your life experienced how financial disparities can impact LGBTQ individuals? Forward them this email!

📉 Managing Debt Effectively

Used appropriately, debt can be a tool to unlock new opportunities or spread big purchases over time. But if interest starts piling up, it can be deceptively easy for debt to grow to an unmanageable level.

As the data shows, debt can be an especially pressing concern for LGBTQ individuals. LGBTQ adults are about 20 percentage points more likely to have federal student loan debt, and the expense of gender-affirming care can also lead to higher medical debt.  

The best strategy for managing debt is pre-emptive. Before borrowing, ensure payments fit in your budget as part of a long-term financial plan, and always double-check fees to make sure you won’t get hit with surprise expenses.

But if you find yourself in over your head, here are a few actionable tips to get your finances back on track:

• Pay down high interest rate loans first – the higher the rate, the higher the priority. This is known as the “Avalanche” method, and it ensures you pay down debt as efficiently as possible. Check out this popular spreadsheet for help using the Avalanche approach and this guide comparing it to the alternative “Snowball” method.

• Consider a debt consolidation loan to repay existing loans. Taking on more debt to get out of debt might seem weird, but if the interest rate on the consolidation loan is lower than the weighted average interest rate across your existing loans, this approach can actually save you money.

• Pursue a debt management plan with a nonprofit credit counselor. You can find reputable counselors through the National Foundation for Credit Counseling. Note: Debt management is very different from debt settlement – this article from the FTC explains the difference.

🏥 Navigating Health Insurance

Health insurance can be overwhelming, but it's crucial to avoid turning a medical emergency into a financial crisis.

Despite progress in recent years, the insured rate among LGBTQ individuals continues to lag non-LGTBQ individuals. This trend may be driven in part by the fact that companies are not required to offer same-sex spousal insurance benefits, even if they do for opposite-sex spouses.

However you identify, signing up for health insurance is a crucial step to securing your personal finances in the US. Unfortunately, many younger people are still uninsured.

🧩 Understanding health insurance can be a barrier. Here’s a chart with the basics and key terms:

• Premium: The regular payment to your insurer, billed monthly or annually, regardless of healthcare usage.

• Deductible: The amount you pay for healthcare before insurance starts covering costs. For example, with a $3,000 annual deductible, you pay all health bills up to that amount.

• Copay: A fixed fee for routine care, like doctor visits or prescriptions, usually $10-30, which doesn't count toward your deductible.

• Coinsurance: The percentage of costs you share with the insurer after meeting your deductible, typically 20%-40%.

• Out-of-pocket maximum: The annual limit on what you pay for healthcare, including copays, coinsurance, and deductibles. After reaching this, insurance covers all costs.

We’ve only scratched the surface of health insurance here, but if you’re uninsured, this should help you get started on finding the right plan for you.

Want more details on how insurance works? Check out this straightforward guide from the Centers for Medicare and Medicaid.

Know someone who’s still uninsured? Forward them this email and you might end up saving them a lot of financial trouble down the road getting juicy gifts from us.

🖊️ 6 Estate Planning Tips for LGBTQIA+ Couples 

For LGBTQ individuals, estate planning can be an even more critical concern. States differ in how they treat unmarried couples or domestic partnerships when it comes to medical decisions and asset inheritance, which means authority can legally fall to (possibly estranged) family members.

Tip 1: Legally naming your partner or spouse is essential    

Even if you're legally married, ensure your partner can make critical decisions for you with these essential Estate Planning documents:

1. Durable Financial Power of Attorney (POA): Lets your partner handle your finances if you're unable to.

2. Living Will (Advanced Healthcare Directive): Clearly states your end-of-life care preferences if you can't voice them yourself.

3. Medical Power of Attorney (POA): Empowers your partner to make medical choices for you if you're incapacitated.

4. HIPAA Authorization: Vital for LGBTQ+ couples, this allows healthcare providers to share your medical info with your designated person, ensuring they can manage your healthcare needs.

Tip 2: 🏳️‍🌈 Same-Sex Marriage, Domestic Partnership, and Civil Union Aren't the Same

The rights and benefits for same-sex marriages, domestic partnerships, and civil unions vary by state. Make sure you understand what you and your partner are entitled to under the law and specify your wishes clearly in your Estate Plan.

Tip 3: 💡 Proper Estate Planning Offers Many Benefits

An Estate Plan protects your partner and can provide financial perks like avoiding probate, offering tax advantages, and providing legal and creditor asset protection with the right legal tools.

Tip 4: 👶 Ensuring Your Children Go to Your Partner Means Appointing Guardianship

For LGBTQIA+ couples with children, appointing guardianship is crucial. Courts often favor biological relatives, so formally nominating your partner as the legal guardian ensures your wishes are followed if you pass away or become incapacitated.

Tip 5: 🔒 Most of Your Estate Plan Stays Confidential

Except for your Will, most of your Estate Plan remains private. This includes your medical and financial Powers of Attorney and Revocable Living Trust. Privacy can be a significant advantage.

Tip 6: 🚫 Failing to Plan is Planning to Fail for Same-Sex Couples

Without proper Estate Planning, you may leave your partner with nothing, especially in states that don't recognize same-sex relationships. Ensure your family is protected with a clearly defined Estate Plan.

We also worked with an ace Trust & Estate attorney as well as Trust & Will to get our NWW subscriber family exclusive discounts. Check out the details below. We got your back!

Exclusive Deals & Discounts from Partners

1. If you identify as LGTBQ or you are an LGTBQ couple seeking a customized trust & estate setup from an attorney, then email our favorite T & E attorney- Christian Zebicoff of RomerDebbas Law Firm at [email protected] and put “ Noyack sent for FREE15 ” in the subject line. Christian will give you 15 minute consult consultation paid by us at NOYACK wealth weekly

2. Make your estate plan and make it count! 20% Discount Code for NWW subscribers only!

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