Susan's Scoop

Granny's Getting Rich! The Great Wealth Transfer to Women

There’s a really intriguing phenomenon happening right now; Baby Boomers have amassed great wealth, but the males are now dying off and older widowed women are set to come into over $40 trillion dollars over the next two decades.

As Caitlin discussed in her newsletter last week, these are women who have historically been left out of the money conversations. These women couldn’t open their own bank accounts until the 1960s, get their own credit cards until 1974, and couldn’t get their own business loan until 1988. And now here they are, set to come into the greatest wealth transfer America has ever seen.

This may be you, this may be your mother, or even your grandmother. It’s amazing progress and power, and we need to make sure these women feel supported and empowered, even if this is unfamiliar territory.

When my father-in-law passed away a few years ago, my mother-in-law was actually in a better position than most; she had been paying the bills and managing their accounts for years. So it was a real shock when all of her credit cards were immediately canceled - and she couldn’t qualify for one on her own.

She had gotten married before women were allowed to have credit cards in their own name, so she had always just been an authorized user on her husband’s account. Without him, she didn’t have any credit history of her own.

We called the credit card companies and begged, but they wouldn’t budge. Eventually, one relented and agreed to issue her a “starter” card - with just a $500 monthly limit. 😬

This is ridiculous, but it’s unfortunately the situation that a lot of older women are finding themselves in. The good news is that we’re seeing a massive shift in how women engage with money. More women are taking ownership of their finances, building wealth, and making strategic decisions than ever before.

But many of these older women didn’t have that same runway, and now they’re being asked to step into financial control (often for the first time) at one of the most vulnerable moments in their lives.

So whether this is you, your mom, or your grandmother, here are a few things to start doing (or helping her out with) now:

1) Familiarize yourself with the family finances​
Be present at meetings with your financial advisor, CPA, or estate attorney. Ask questions, even if you feel like you “should already know.” Understand what you own, how it’s invested, and what the long-term plan is.

2) Know where the accounts are and how to access them​
Have a clear list of all accounts (bank, investment, retirement, insurance, property) and how to log into them. This includes usernames, passwords, and contact information for institutions. If something were to happen tomorrow, you don’t want to be locked out and scrambling to piece things together.

3) Build your own credit​
If everything has been in your spouse’s name (or you’ve only been an authorized user), open accounts in your own name now. A simple credit card and paying it off monthly can establish your credit history.

4) Understand how your Social Security benefit will change​
When a spouse passes, one Social Security check goes away. You’ll keep the higher of the two benefits, not both. That can be a significant income shift, so it’s important to know what your new monthly income would look like ahead of time.

5) Make sure your estate plan is current​
Review (or create) your will, powers of attorney, and healthcare directives. Confirm beneficiaries on all accounts, as these override your will.

6) Be intentional about giving (and understand long-term care realities)​
If you plan to give money to children, grandchildren, or charities, think through the timing and tax implications. Also be aware that programs like Medicaid require you to spend down assets (generally to around $2,000, depending on the state) before benefits kick in for long-term care, and there is usually a 5-year “lookback” period on gifts.

7) Identify a TRUSTED financial partner​
Have someone you trust who can help keep an eye on things as you age - this could be a family member, friend, or professional. Unfortunately, financial scams targeting older women are incredibly common. (I have multiple friends whose parents have been convinced to deposit thousands of dollars into bitcoin ATMs.🤦‍♀️) Having a second set of eyes on your funds can help protect you and give you peace of mind as you age.

Unfortunately I’ve seen firsthand how quickly someone can be forced into this role and how overwhelming it can feel. But with a little preparation and the right support, this can shift from something daunting to something incredibly empowering that moves the entire women’s money movement forward.

What I'm Listening To

​🎧 The Sports Gossip Show (podcast)

A lot of women ask me for podcast recommendations, and while I do listen to some financial podcasts, this is the one podcast that I listen to religiously every week. And get this - I don't even like sports! I just love the rapport of the hosts Madeline and Charlotte, and how they weave in women's empowerment into a traditionally male field, and also call out men who are behaving badly. It's always a fun listen!

Join us for free the first Wednesday of each month for an informative money conversation! We had a great conversation yesterday about what to do with that extra cash laying around - pay off debt, keep in cash, or invest. Look for the recording soon on our YouTube Channel!

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