Cameron Zabko, CFP®
Losing a spouse can leave you feeling as though the entire structure of your life has been uprooted—emotionally, practically, and financially. If your late husband’s paycheck was the primary source of income, you may find yourself unsure of how to move forward without taking on unnecessary risk or running out of funds in retirement. At Westhollow Wealth Management, we focus on guiding widows through this tough transition, helping them convert what might feel like a puzzle of financial accounts into a clear, reliable plan. (Learn more about how our widow-focused planning process works.) Whether you have a $200,000 estate or a $2 million diversified portfolio, it may be possible to replace the lost paycheck by strategically using your husband’s investments. The goal isn’t just to manage money—it’s to preserve the lifestyle you’ve built and maintain the freedom to enjoy what lies ahead.
Before creating an income plan, take a step back and consider your new life circumstances. Many widows discover that the spending habits of a two-person household are different from a single-person household. You might also have retirement dreams that you didn’t plan for when your spouse was alive—maybe it’s traveling with grandchildren, investing in a home near your church community, or covering ongoing medical expenses without worry.
A good initial move is to calculate how much you actually need every month. Some in retirement might aim to replace 70–85% of their previous salary, but the target could be higher if you anticipate more travel or healthcare costs. You may be stepping into the role of “household CEO” for the first time, learning how to do everything from budgeting to paying property taxes. Asking yourself questions like, “How much money do I truly need every month now that I’m on my own?” or “Am I overestimating my expenses?” can help clarify your vision. In our experience at Westhollow, simply writing everything down—from mortgage payments to groceries—can bring a surprising sense of relief and control. If the paperwork itself feels overwhelming, you may find comfort in our resource Feeling Overwhelmed by Paperwork After the Passing of a Spouse?
After understanding your monthly spending needs, the next step is to lay out all the financial pieces on the table. In many widowed households, money is scattered across multiple accounts—IRAs, 401(k)s, brokerage accounts, even small pensions—yet you may not be sure which to tap first. Document each account along with expected payouts, any restrictions, and beneficial tax treatment. You might discover you have more resources than you initially realized.
As you gather statements, remember that banks and credit card companies often require specific documentation before they will close or retitle an account. Our Checklist for Closing a Late Spouse’s Bank Accounts and Credit Cards Smoothly can help you navigate those steps without missing details.
This is also the time to consider income outside of your portfolio. Social Security survivor benefits may provide an extra layer of monthly cash flow, especially if you can coordinate the timing of those benefits for maximum impact. Some widows find that a modest side hustle—perhaps occasional consulting or renting a spare room—can help with immediate expenses, giving investments more time to grow. If you inherited shares of your spouse’s employer, our Widow’s Guide to Keeping or Selling Company Stock can clarify whether holding or liquidating makes more sense for your long-term strategy. The key is to consider everything you have, from the smallest bank account to any life insurance proceeds, so you can see the complete picture.
You might wonder, “What’s the best way to replace lost paycheck with my husband’s investments?” The truth is, it rarely comes down to a single product or single approach. Often, you can create a diversified “replacement paycheck” by combining several strategies systematically.
Dividend-Focused Portfolios: Dividend-paying stocks or mutual funds can provide recurring checks that feel much like a paycheck. While the typical S&P 500 dividend yield is around 1.5–2%, carefully chosen dividend-focused funds can sometimes yield more. The trade-off is that higher yields can come with higher risk, so it’s important to choose carefully.
Bond Ladders: Bonds, especially when structured into a ladder with staggered maturity dates, can offer predictable interest payments plus the return of principal when each bond matures. Combining a bond ladder with dividend stocks is a popular approach because it provides stability plus the chance for growth.
Balanced or Total Return Portfolio: Another route is to use a balanced portfolio—sometimes 60% stocks and 40% bonds, or a variation depending on personal risk tolerance—and systematically withdraw a set percentage (often around 3.5–4%) each year. When this is coupled with periodic rebalancing, you can lock in gains during upward markets so that you don’t have to sell in a downturn.
If you are worried about market volatility, remember that part of managing your investments is preparing for the inevitable ups and downs. Having a cash or cash-equivalent reserve for short-term needs provides a safety net. This allows you to ride out storms without feeling pressured to liquidate assets when prices are low.
In many cases, the way you draw from your accounts can make a big difference in how long your savings last. Taxes matter. Some accounts offer tax deferral, others are taxed as ordinary income, and some can enjoy favorable rates on dividends or capital gains. Coordinating these withdrawals is often called “tax-smart distribution sequencing,” and it can be particularly valuable for widows who need to ensure every dollar goes as far as possible.
If you inherited retirement accounts, you may also need to navigate Required Minimum Distributions (RMDs). Current laws set the age for RMDs to begin at 73, but be mindful of any changes that could affect you. Carefully choosing which account to tap first can preserve tax advantages while still getting you the funds you need. In some situations, delaying Social Security can further increase your eventual monthly benefit, though that depends on your overall income needs and health considerations.
Don’t forget the legal side of the equation either. Make sure your estate plan and beneficiaries are up to date. If you have older estate documents listing your late husband as the primary beneficiary, you may want to reevaluate those documents to determine what your next chapter looks like. Thorough planning like this ensures you can rest easy knowing that your loved ones won’t be left sorting out a messy estate later on.
Once you rely on your portfolio to replace income, risk management becomes more important than ever. Market volatility is a normal part of investing, but it feels more serious when there’s no paycheck coming in each month. To cope with potential downturns, many widows keep a year or two of living expenses in a liquid savings or money market account. That way, if the market dips, you won’t need to sell valuable investments in a rush—and you’ll still have the stability to pay your bills or handle an emergency.
Lifestyle risk also deserves attention: if you’re planning on traveling more extensively, you might need a bigger buffer. Health uncertainties can arise, too, especially as you consider future long-term care or medical costs. Building these possibilities into your strategy from the start goes a long way toward preserving your peace of mind.
Finally, keep your plan flexible. Life can throw surprises at any stage, so there’s value in being able to adjust your withdrawal rate or your investment allocations. The solution that felt perfect when you were 55 might need updating at 60 or 65. With quarterly adjustments and check-ins, you’ll be fully aware of whether you’re on track—and what you might want to change.
Replacing a six-figure salary using a diversified portfolio takes planning, steady execution, and a willingness to refine decisions over time. At Westhollow Wealth Management, we recommend a high-level roadmap that gives you clarity on how to start and where you’re headed.
Clarify Your Income Needs: Decide what you need on a monthly and annual basis, factoring in fun items like travel, gifts to family, or church donations—these are part of your life, too.
Identify and Group Assets: Organize all retirement accounts, brokerage accounts, and any life insurance proceeds you might have. Understanding the structure of each account helps you deal with taxes and potential RMDs strategically.
Build Your Distribution Model: Choose the mix of dividend-paying stocks, bonds, and systematic withdrawals that feels comfortable. If you plan to travel frequently or have higher-than-average medical costs, talk that through with your advisor so you can factor in the right allocation.
Set Up a Review System: Check in regularly—quarterly is often a good rhythm—to see how your plan is handling changes in the markets and in your personal life. If you’re ever unsure about a decision, it often helps to speak with a professional who understands both the numbers and the emotional hurdles.
Still feeling uncertain about which steps to take first? Schedule an introductory call with Westhollow Wealth Management to talk through your unique situation. We can help you sort through what you have now and guide you toward a more thorough course of action that aligns with your goals.
Is it possible to replace a six-figure salary using a portfolio of around $2 million?
It may be possible, but it requires careful planning. A balanced strategy that combines dividend-paying stocks, bonds, or systematic withdrawals can help generate consistent income. Tailoring the plan to your lifestyle and risk tolerance is essential, especially if you’re concerned about potentially outliving your assets.
I’m confused about which accounts to use now that my paychecks have stopped. How should I prioritize?
Generally, many people use cash, taxable accounts, then tax-deferred accounts like IRAs and 401(k)s, and finally Roth accounts. However, decisions often hinge on your tax bracket, age, and whether you’ll need to meet required minimum distributions soon. It’s best to get personalized advice if you find these rules overwhelming.
How often should I adjust my withdrawal rate from my investments?
Market conditions and changes in your personal life can both warrant adjustments. Many widows review their withdrawal levels at least once or twice a year. If your portfolio has performed well or your expenses have changed significantly, it might be time to revisit your distribution strategy.
Do I really need a financial planner for this, or can I just do it on my own?
Some widows manage just fine alone if they already have a strong financial background. But many realize they appreciate having a CFP® professional who can streamline complex decisions—especially if they’re juggling probate, retirement transitions, and grief. It’s not just about financial expertise; it’s about having someone in your corner for accountability and peace of mind.
What if I’m worried about big shifts in stock market performance?
Having an emergency fund or a short-term bond allocation can help protect you from having to sell stocks in a downturn. By setting aside one or two years of expenses in safer assets, you gain the flexibility to ride out market lows without tapping your core portfolio prematurely.
Ultimately, replacing a lost paycheck isn’t about finding a one-size-fits-all product. It’s a customized process of using your late husband’s investments to give you stability, flexibility, and the freedom to write the next chapter of your life. If that’s what you need right now, schedule an introductory call and let us show you how a caring but comprehensive approach can transform confusion into clarity. We’re here to support you every step of the way.
