Women need to be smart about their own finances. Why?
- Women earn less
- Live longer
- Spend fewer years in the work force
It is imperative that women be able to stand on their own financially (40% of married women say they don’t know how much they have saved for retirement).
A woman should identify her financial goals by asking herself:
- How much money do I need to save for short-time goals – emergency funds, a new car, etc.? How should that money be invested?
- How much do I need to save for long term goals – college for kids, retirement?
- How much should I save each year? What kinds of investments will help me reach my goals?
- Do I need a retirement plan separate from my spouse?
- Do I have my own business? Am I contributing to SEP IRA?
- Do I have a will and an estate plan? Is it up-to-date?
- Do I have a current health care directive?
- Do I have a durable power of attorney?
- Should I have a trust? Is my house listed as part of my trust?
- Am I interested in charitable gifting?
Answering these questions is the first step in helping you decide where you need to be financially – today, in five years, and in retirement; married or single, divorced or widowed. Work with a financial professional to develop a financial strategy; whether you are just starting out, building your family, or planning for retirement.
Whoever you choose, don’t sign anything during your first meeting. Talk to them. Are they listening to you? Are they answering your questions in a way that you can understand? Are they impatient? Are they concerned about getting your accounts open TODAY? Do you feel that they have your best interest at heart? You work hard for your money – don’t give it away to the first person you meet with – interview several financial advisors and find one that fits your needs.
Save for a rainy day, spend wisely on things you really need, and keep a hopeful outlook for your financial future.
Love Your Hair,