Surviving as a trans person in this world is no small feat. You are not only fighting for basic rights while confronting discrimination and transphobia but also facing unique challenges to your financial health and well-being. Dealing with higher medical costs or wait times for gender-affirming health care, the ongoing costs of aesthetic modifications, limited insurance options, and the use of deadnames on financial and legal documents makes financial wellness more difficult for trans people to attain. On top of that, trans people need to consider the possible toll on their mental and emotional health while navigating these obstacles.
While the picture looks bleak, especially given the current political environment, I encourage my clients to focus on what they can control to keep them grounded. This may include considering more therapeutic or community support, saving a little more, or taking care of financial and legal documentation. Most important, it requires looking at the big picture so you can anticipate and plan for any obstacles to your care and live your life the way you want.
In this post, we’ll discuss the financial, mental, and emotional factors that trans people need to consider when building a sustainable financial plan.
Considerations for protecting your health and well-being
Trans people have a web of factors to consider when they create a sustainable financial plan. One trans client, for example, wanted to retire in five years and valued feeling safe and supported. They didn’t want to stay where they lived, but they also didn’t want to move back home near their family. They decided to move to a friendlier area of the country so they could feel safe yet still have money for gender-affirming care and aesthetic treatments. This meant they had to limit their spending to save for relocation while still paying out-of-pocket for a trans-affirming therapist. The same client didn’t have an estate plan and wasn’t married, which meant that when they passed away, their family would be making decisions about their assets. Before moving, they started compiling legal documentation to ensure their wishes would be honored.
Our client’s proactive approach took into consideration their safety, financial stability, legal protection, and more to give them some peace of mind. Here are four considerations you can use to create your sustainable financial plan.
Take care of your financial and legal documentation now
If there was only one piece of advice I could give you, it would be to stay on top of your financial and legal documentation. It’s important to be proactive here particularly because of the ongoing upheaval of our health care and legal systems. Many trans people are taking steps to update their legal name and documents such as their driver’s license or passport. Make updating other important documents, such as bank accounts, 401(k)s, or power of attorney, part of that effort. This way, all your documentation is consistent, lessening the chance that you have issues down the road.
Be prudent about your money
The LGBTQ+ community needs to build financial resilience, especially because protecting our health and well-being can be more expensive. As a trans person, you may face further restrictions on gender-affirming care, for example, which could limit the number of doctors who provide it, dramatically increasing costs. This might mean you need to have more savings or trim down on spending to afford care. It also may mean you need to choose between priorities, such as moving to a safer area instead of starting a family right away.
Unfortunately, the risk of losing access to the things you value and want is real. But this doesn’t mean that having a scarcity mindset will ensure that you’re protected. In fact, having an abundance mindset may help you be more intentional about how you use your money, leaving you feeling grounded and more in control of your circumstances.
Prioritize your mental and emotional health
Many of my trans clients have experienced deadnaming in financial and legal situations. Some have legally changed their name but have to go through an arduous process to change it on their investment accounts. This extra step of bureaucratic work could prevent you from having access to the funds (and mean even more work!). This experience could also be really triggering for a variety of reasons.
To limit or repair the harm caused by these situations, you may need to make your mental and emotional health a priority in your financial plan. That could look like putting aside money for a regular therapist (which has its own hurdles), asking a trusted family member or friend to help you through the process, or planning short trips to a place you love to recharge.
Lean on community
Above all, trans people can rely on themselves to get through tough times. Finding resources within the community – whether that’s a trans support group, a trans advocacy organization, or even a trans financial planning program – is part of what makes a financial plan “sustainable.” Leaning on a community that understands what you’re going through may make all the difference.
Remember that financial planning is for trans people, too. You deserve financial stability, safety, and a way to care for your health and well-being. When you consider the big picture, you can create a financial plan that sustains your financial wellness as well as your ability to live authentically.
Jim is a financial advisor and owner of Thinking Big Financial, Inc. Thinking Big Financial is a fee-only registered investment advisor offering financial planning and investment management services. Specializing in working with the LGBTQ Community.
Please read my legal disclaimer here.