When it boils down to it both men and women want to achieve long term financial security. So how is financial planning for women different? While we all want to achieve the same goal, most women face certain challenges that are unique to them including:
Longer Life ExpectancyWomen tend to live longer than men so planning for a longer retirement is key. According to the World Economic Research Forum women on average live four and a half years longer than men, but we know that this gap can be wider depending on lifestyle and family history.
Interrupted Work LivesWhether you decided to stay home to take care of your children, or took a few years off to care for them or an elderly parent, interrupted careers often means you miss out on earnings potential. According to the Pew Research Center women are more likely than men to take time off, and the earnings penalty for doing so can be great.
Earnings PotentialWhile the earnings gap is shrinking in many fields, in too many cases women continue to earn less than men. A PayScale survey finds that differences in pay can be seen and can vary based on ethnicity, education level, occupation and industry.
Impact of DivorceOn average a woman’s financial stability is more affected than a man’s after divorce. Things can sometimes get worse when you receive bad financial advice during or after the divorce is settled. More on this below.
Involvement in Financial DecisionsWhile more and more women are driving the financial and investment conversations at home, in some cases women do not get involved in the household finances or in the financial decisions that can impact their financial future. This can often leave women with unknown debt, hidden accounts, and insufficient retirement funds.
Whether you are single, married, going through a divorce, or are widowed, financial planning and investment management should be on the top of the list of things that you need to get involved with. This will not only empower your today, but will also help you secure your financial future. Here are a few things to start with:
As a woman owned and operated financial planning and investment management firm, we understand the challenges women face firsthand. Our goal is to help you overcome these challenges and meet your financial goals. Here’s what you can expect from us:
HonestyYou can trust that we will guide you and empower you through difficult financial and sometimes uncomfortable conversations.
TransparencyWe will spend the time to explain the strategy and investments that will help you achieve your goals.
Equal PartnerWe will take the time to listen and work with you alone or with your spouse throughout the financial planning process. We will never simply dictate what we think is right for you.
The latest research suggests that divorce rates in the U.S. have been falling in recent decades. Still, many people face the difficult crossroads that comes when their marriage ends. Getting a divorce is a painful, emotional process. Don’t be in such a hurry to reach a settlement that you make poor decisions that can have life-long consequences. If divorce is a possibility, here are a few financial ideas that may help you prepare.
The most important task you can do is getting your finances organized. Identify all your assets and make copies of important financial papers, such as deeds, tax returns, and investment records. When it comes to dividing up your assets, consider mediation as a low-cost alternative to litigation. Most states have equitable-distribution laws that require shared assets to be divided 50/50 anyway. When a divorce becomes contentious, attorney’s fees can accumulate.From a financial perspective, divorce means taking all the income previously used to run one household and stretching it out over two residences, two utility bills, two grocery lists, etc. There are other hidden costs as well, such as counseling for you or your children. Divorces also may require incurring one-time fees, such as a security deposit on a rental property, moving costs, or increased child-care.Dividing assets may sound simple but it can be quite complex. The forced sale of a home or investment portfolio may have tax consequences. Potential tax liability also can make two seemingly equal assets have varying net values. Additionally, when pulling apart a portfolio, it makes sense to consider how each asset will suit the prospective recipient in terms of risk tolerance and liquidity.During a divorce, many factors are competing for attention. By understanding a few key concepts, you may be able to avoid making costly financial mistakes. A financial advisor can help you think through your lifestyle to gain a better understanding of your expenses both before and after a divorce. This is especially important for women who haven’t been involved in paying the bills, managing investments, buying insurance, or budgeting.
Financial stability is a top concern among women who divorce. Yet a new study finds that over 95% of women do not use a financial advisor when going through a divorce or following a divorce despite having financial goals they want to achieve. Going through a divorce has serious financial consequences with long lasting implications.
Some considerations during and post divorce:
The first year after a death or divorce can be very rough. It is wise not to make any major changes, such as selling a house, right away. However, it is imperative to not delay the planning process.
Have you found yourself suddenly single? Here are 3 steps to take right now.
For more on budgeting after divorce, click here.
At the heart of financial planning is understanding your goals and creating a road map to achieve them. A key part of the process is reconciling your income and savings with your spending. Further, we want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of our firm's foundation of success.
As you Advisor, will take our time time building a solid foundation rather than rush and create a plan that is unrealistic. You want to start the planning process as soon as you can, but you may not have all the answers right away, and that's to be expected. Let us help you navigate this process.
You already know the importance of investing for your long-term financial picture. What you may not realize is that women face unique life situations that can make investing in their futures especially challenging. By understanding these issues, you can be better equipped to pursue the financial future of your dreams.