Financial concerns affect many people, but those in the LGBTQ+ community encounter specific challenges. LGBTQ+ individuals typically earn about 90 cents for every dollar earned by the average worker. Additionally, a recent survey indicates that over 30% of LGBTQ+ adults have faced discrimination while seeking financial services.
These broader issues often arise from systemic bias within legal, financial, and medical frameworks. Jim Marracco, a certified financial planner, states, “The financial obstacles for LGBTQ+ individuals exist because existing systems and regulations don't account for their unique experiences, leaving them overlooked or under threat.”
To shed light on these issues, we consulted financial experts from the LGBTQ+ community for advice on fostering financial knowledge and empowerment. Here are their insights.
Find a Supportive Financial Planner
“Financial planning for the queer community isn’t always different,” explains Mindy Neira, a principal and wealth manager. “However, partnering with a financial planner who understands your specific challenges can significantly improve your financial planning process.”
Neira emphasizes the necessity of researching potential advisors before committing. Establishing a trustworthy relationship is crucial, so don’t hesitate to conduct interviews. “Your financial planner should grasp the complexities of your life and finances to support your long-term decisions effectively,” she adds. Having someone familiar with LGBTQ+ financial matters can prepare you for the distinct financial needs that often arise in the community.
Preparing for Major Expenses
For LGBTQ+ individuals, planning for children involves complex considerations, from conception to education. Options such as adoption, surrogacy, and fertility treatments can be expensive. For instance, the average surrogacy cost in the U.S. lies between $190,000 and $230,000, while the cost of IVF can range from $15,000 to $20,000 per cycle, often requiring multiple attempts.
While there’s no way to lower these costs directly, experts recommend treating them like any major financial goal. Consider setting up a dedicated savings account for these expenses and investing that money based on your timeline. For a family plan in 5-10 years, investing in stocks might be wise, whereas a shorter goal of 3-5 years could benefit from a high-yield savings account from online banks, which typically offer better rates.
Understanding Insurance Needs
Access to quality healthcare is vital for everyone, but LGBTQ+ individuals may face specific health issues that insurance often overlooks, such as gender-affirming surgeries and hormone therapy. Estimates indicate that gender-affirming care can cost between $25,000 to $75,000, according to the Human Rights Campaign.
Fortunately, more employers now cover some gender reassignment procedures. However, many out-of-pocket expenses remain. For example, the average monthly cost for hormone replacement therapy ranges from $30 to $90.
Moreover, about 42% of the LGBTQ+ population lives in states lacking insurance protections based on sexual orientation and gender identity, which can lead to inequities in coverage. Marracco points out that insurance can be especially unjust, with individuals requiring gender-affirming care or those living with HIV often facing barriers to accessing necessary products.
If you have insurance, a quick call can clarify coverage for your needed procedures or medications. Ensure you get a detailed list of coverage options via email or mail. If coverage is lacking, activate your savings plan as mentioned earlier. Some community members have successfully funded surgeries and HRT through crowdfunding, and exploring job opportunities with better healthcare benefits can also enhance your financial stability.
Stand Against Discrimination
If you believe you’ve experienced financial discrimination, it’s crucial to voice your concerns. Your sexual orientation is protected, meaning no one should deny you benefits or opportunities available to others. Whether making significant financial decisions or seeking to expand your knowledge, consider consulting a professional who can help you understand your rights and access appropriate resources. Neira suggests the LGBTQ+ Bar as a valuable resource for finding attorneys and support services.
