Four Steps to Financial Protection for the LGBTQ+ Community

If you’re a member of the LGBTQ+ community, you’re a member of the Bolder community. We are you, you are us. Welcome. 

We know money can be really stressful, especially facing financial discrimination and more out-of-pocket healthcare costs. The incoming administration is not going to make it easier, so we’ve created four things we want you to do right now to protect yourself financially. 

We wish this discrimination didn’t exist, but while it does, here are some things you can do to protect yourself. 

Coach Ruth's Take

"Here's the deal: our LGBTQ+ community needs to get serious about money as protection. When you have money, you have options. Don't stop at just saving. Take it a step further and become an owner in the economy through investing (the last step below). Think about it: politicians come and go, but one thing never changes – they'll always protect the stock market and investors' wealth. When you're paying interest, the system works against you. But once you're the one earning interest and investment returns? That's when doors start opening. Your money starts making money, and that's real power."

- Coach Ruth, LGBTQ+ Bolder Money Coach

Plan multiple options for income 

You may find that as companies are rolling back DEI initiatives, you feel less safe in your workplace, and need to find alternatives. Prepare for this now by focusing on career mobility, or being ready for anything. 

1. Expand your professional network. Join LGBTQ professional organizations and network with individuals who work at organizations you could see yourself thriving at as an employee. 
2. Document all achievements, important conversations, and feedback from your team and manager. 
3. Look for ways to supplement your income, with freelance work based on your skillset, or side hustles that allow you to feel safe. 

‍Prepare for changes in benefits and costs. 

As laws and protections change, it will be important to understand the financial implications, from your health insurance coverage to your beneficiary options. 

1. Check your health insurance coverage for your specific medical needs. If the care you need isn’t covered or you fear coverage could be rolled back in your state, start looking at funding options beyond insurance (see our tips below). 
2. Add your loved ones as beneficiaries on your accounts and assets. Don’t assume marriage laws will remain the same or that domestic partner status will be enough, if you have a long-term partner or spouse you do life with, add them specifically as the beneficiary. You can also set up legal documents, like a trust or will, that lists them as the beneficiary to ensure they are protected.
3. If you are expecting to need gender-affirming care that will require time off work, ensure you have the disability insurance necessary to cover you for any leave. Disability coverage will also be helpful if you need time off for mental health reasons. Check with HR, and/or find your own coverage. 

‍Be intentional about spending and savings 

You deserve to take care of yourself, and cope with the current timeline however feels good for you. However, it’s so important to have savings to carry you through if you need to make a career change, lose insurance coverage for medical costs, need to move, or any other situation you might be worrying about. Stress is lessened when we have a financial backup plan. 

1. Reflect on where your money goes. Ask yourself when spending: is this helping me in my goal of (physical or psychological safety / moving / getting gender-affirming care / changing jobs / etc) or is it distracting me? Take this holistic approach to routing money towards your goals, so you can save for what matters.
2. Build your emergency fund, so if you lose your job or have to switch, you have enough to cover your expenses for 6 months. 
3. Set aside dedicated funds for upcoming costs, like moving or medical expenses. 
4. Have a backup plan if savings aren’t enough. Make sure you have a credit card, a friend or family member who could help, or loan options based on your credit score. 
5. Explore crowdfunding options or finding funding programs specific to your expenses. 

We’re not here to tell you debt is bad when it might be your only option for getting the care you need, or getting into a safer environment. If you do need to go down the debt route, pay attention to the interest rates offered and repayment options. 

Medical costs often come with interest free repayment plans depending on the hospital or treatment center, and medical debt will not impact your credit for at least a year. Explore all other options before you resort to a credit card. 

And if you have to, it’s ok. You’ll make a plan to pay it off. 

If you can, start building long-term wealth now. 

Many in our community are only in a position to think about the short-term, and that’s understandable. 

If you can, set and forget your retirement savings and investments so it’s earning you money without any effort on your part. 

Once you feel more secure about income, emergency funds, and medical cost savings, you can double down on investments. 

1. Understand company retirement benefits and portability options. Capitalize can help you rollover your 401k to a new account if you need to change jobs. Keep in mind you are subject to vesting for any employer matching contributions, and sometimes it’s worth it to stick around a little longer until you vest, or can claim employer contributions as your money when you leave the company. 
2. Open your own retirement account, like an IRA or Roth IRA, and contribute a consistent amount each month, up to your maximum. If you’re self-employed, consider an SEP IRA. 
3. If you want to talk to an investment expert 1:1, consider an LGBTQ-friendly financial advisor who understands specific needs. 
4. Evaluate investment options that align with companies supporting LGBTQ rights, and consider how social impact funds fit in your overall portfolio. 

Put on your oxygen mask first by taking these steps, and you'll be in a better position to help others in your community do the same. Protecting yourself financially will help you reduce stress, and be in a better position to invest in each other through collective care in our own communities. This can look like contributing to LGBTQIA+ mutual aid groups, cooperatives, grassroots organizations, and movements that value protection, reparations, and redistribution of wealth/resources. More money for you can mean more security for everyone!