Financially Empowering Women

March 11th, 2024

Despite making big strides in many aspects of life, like the workforce and business ownership, women still face unique financial challenges, like wage disparity, career interruptions, and lack of confidence. A trusted advisor can help you address these challenges and achieve financial success. In this article we’ll explore several obstacles women face when financial planning and the ways a reliable financial advisor can help to steer the ship to retirement.

Challenges

The Gender Pay Gap

By the numbers, women still earn less than men. Basic math tells us that if you earn less, you can contribute less to your retirement fund, so it is critical that you start planning for retirement early and maximize your contributions where possible.

Longer Life Expectancy

On average, women live four to five years longer than men, which means four to five years longer your retirement savings need to last. Ensure you run your retirement planning time horizon long enough to accommodate longer life.

Career Interruptions and Caregiving Responsibilities

You might live longer, but you could also have fewer full-time working years under your belt in which to contribute to your retirement fund. If you take time off from your career to raise children and/or care for aging parents, retirement contributions may pause while your income is reduced.

Lack of Confidence

Research has shown that women tend to be more risk-averse in their investments. While lower risk tolerance is not necessarily a negative, it may mean missing out on potentially higher returns. Some women also report lower levels of financial confidence compared to men, which might discourage them from actively managing their finances or seeking investment opportunities.

How an advisor will help

Customized Financial Plans

A skilled advisor will create a financial plan that is personalized to meet your unique needs and goals. They will take a holistic approach to examine all aspects of your financial life and ensure that your plan meets your needs and is agile to accommodate any life changes.

Retirement Savings Strategies and Retirement Spending Plans

An advisor can help strategize the best investments and accounts to maximize your retirement savings, even if you have some leaner years due to childcare or eldercare responsibilities. An advisor can also help you create a spending plan for your retirement years so you will know how much you need to save now to fund your desired retirement lifestyle.

Mitigating Risk Aversion

A knowledgeable advisor will discuss your risk tolerance and can help to alleviate anxiety about including a higher-risk investment in the mix. Like every financial decision, there are pros and cons to weigh, so having an advisor who is versed in the management of your portfolio can be an asset when you are deciding how to invest your money.

Empowerment and Education

Financial literacy is key for taking control of your finances and making financial decisions that will benefit you in the long run. An advisor can help educate you on products, processes, and strategies which will empower you to make smart money decisions.

Navigating Life Changes

Because women have a longer life expectancy than men, most women will spend at least a portion of their retirement years single. If you lose your partner in retirement, there will be legal and financial responsibilities that now rest on your shoulders. If you have not been involved in the family financial plan up to that point, it can be a struggle. The earlier you get involved in your financial plans, the better.

Estate Planning

Perhaps as important as being involved in your financial planning is to work with your advisor to create a comprehensive estate plan. Keeping an updated will, power of attorney, and beneficiary designation is crucial to making sure your assets are administered according to your wishes, either to beneficiaries or charitable organizations depending on the legacy you plan to leave.

Your journey to financial freedom begins when you start planning despite the common challenges outlined above and take control of your financial goals. Partnering with a trusted advisor to build a retirement strategy that includes an estate plan and considers your individual needs and goals will reassure you that you are saving enough and will have enough to last comfortably throughout your retirement.


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