We all look up to strong, independent women. But how do we become one ourselves?
Its easy to give in to feelings of self-doubt and back down from challenges. But that’s certainly not what being a strong woman is all about.We all know we’re different from men in some fundamental ways. But is this true when it comes to financial planning? In a word, yes. In the financial world, we often find ourselves in very different circumstances than our male counterparts. Everyone wants financial security. Yet we often face financial headwinds that can affect our ability to achieve it.
CHALLENGES FACED BY WOMEN IN FINANCIAL PLANNING:
Financially speaking, women have longer life expectancies. Women live an average of 4.8 years longer than men. A longer life expectancy presents several financial challenges :
- Women need to stretch their retirement benefits further
- They are more likely to need some type of long-term care, and may have to face some of the health-care needs alone
- Married women are likely to outlive their husbands, which means they could have ultimate responsibility for disposition of the marital estate
CAREER BREAKS FOR CAREGIVING.
- The gender gap puts women at a career long disadvantage
- They are much more likely than men to take time out of our careers to raise children and/or care for aging parents. Sometimes this is by choice. But by moving in and out of the workforce, we face several significant financial implications:
- Lost income, employer-provided health insurance, retirement benefits, and other employee benefits
- Less savings
- A potentially lower Social Security retirement benefit
- Possibly a tougher time finding a job, or a comparable job
- Increased vulnerability in the event of divorce or death of a spouse
HASSLE IN RETIREMENT
In addition to stepping out of the workforce more frequently to care for others, women are more likely to try to balance work and family by working part-time, which results in less income, and by requesting flexible work schedules, which can impact their career advancement .
For every year a women stays home caring for s child, she must work five years extra to recover that loss of income. Women are more likely to be living on their own. Whether through choice, divorce, or death of a spouse, more women are living on their own. This means they will need to take sole responsibility for protecting our income and making financial decisions
STEPS WOMEN CAN TAKE:
In the past, women may have taken a less active role in household financial decision making. But, for many, those days are over. Today, they have more financial responsibility for ourselves and our families. So it’s critical that they know how to save, invest, and plan for the future. Here are some things women can do:
- Take control of your money: Create a budget, manage debt and credit wisely, set and prioritize financial goals, and implement a savings and investment strategy to meet those goals.
- Become a knowledgeable investor: Learn basic investing concepts, such as asset classes, risk tolerance, time horizon, diversification, inflation, the role of various financial vehicles like 401(k)s and IRAs, and the role of income, growth, and safety investments in a portfolio. Look for investing opportunities in the purchasing decisions you make every day. Have patience, be willing to ask questions, admit mistakes, and seek help when necessary.
- Plan for retirement: Save as much as you can for retirement. Estimate how much money you’ll need in retirement, and how much you can expect from your savings, Social Security, and/or an employer pension. Understand how your Social Security benefit amount will change depending on the age you retire, and also how years spent out of the workforce might affect the amount you receive.
- Protect your assets: Identify potential risk exposure and implement strategies to reduce that exposure. For example, life and disability insurance is vital to protect your ability to earn an income and/or care for your family in the event of disability or death. In some cases, more sophisticated strategies, such as other legal entities or trusts, may be needed.
- Create an estate plan: To ensure that your personal and financial wishes will be carried out in the event of your incapacity or death, consider executing basic estate planning documents, such as a will, trust, durable power of attorney, and health-care proxy.
Women have a lot to be proud of today. We are healthier, wealthier and wiser – yes, even compared to our male counterparts we have made great and well-deserved strides. So go ahead and be independent. Start your own financial plan today!
To know more, contact us at – firstname.lastname@example.org , 080-40463150
WISHING YOU A VERY HAPPY INTERNATIONAL WOMEN’S DAY!
“DEFINE YOUR SUCCESS ON YOUR OWN TERMS, ACHIEVE IT BY YOUR OWN RULES AND BUILD A LIFE YOUR PROUD TO LIVE”