Financial Planning for Women
Financial Planning for Women
There are many strengths that women bring to the financial planning process.
- For example, they are most likely to manage the family’s finances, and they tend to have a thorough understanding of what it takes to run a household.
- Studies have shown that women make fewer investment mistakes than men do, and are more likely to recognize and learn from the mistakes they do make.
- Women also tend to be better able to adapt to new information that disagrees with what they previously believed. The ability to learn and adapt to changes is a crucial skill for successful investing.
- Women are also better able to recognize when they need education or help, and to ask for it. Perhaps it’s a bit like asking for directions when you are lost.
But there are also unique challenges women may face in planning for their financial future:
- Women tend to live longer than men do, so a woman’s assets need to work harder than a man’s in order to support her needs throughout her life.
- Because they usually live longer than men, women are more likely to face major medical expenses. With the rapid changes in medical advances, health issues that once used to be terminal are now chronic. This often necessitates the need for costly long term care assistance.
- As investors, women do sometimes tend to be too conservative. This can be risky if the portfolio is not able to keep up with inflation.
- Most women still earn less than men over the course of their careers. This can be due to a number of factors including careers that are interrupted to focus on child-rearing or caring for another family member. A woman is more likely than a man to assume responsibility for the important unpaid work of care-giving, which may leave her with lower lifetime earnings, and fewer opportunities to save for her future.
- Women’s social security benefits are generally less than men’s. The benefit amount is based on their earnings record, and it is calculated from their 35 highest-earning years. Since women are more likely to have low-paid or unpaid years due to child-rearing, they will have a lower benefit amount since those “zero-earning” years are incorporated into their average.
These special situations that women face in their lives mean that they need to plan carefully to ensure that their financial resources will sustain them in retirement. So if you’re feeling a little lost in your retirement planning, or if you’d like to get some education about investing, come in and see us for a free consultation. We explain technical concepts in straightforward language that will make sense whether you are a beginner or a seasoned investor.
Working in a collaborative partnership, we can help you work toward a more financially strong future.
If you need some help understanding the options in your particular situation, please don’t hesitate to call us at 408-551-6100 or toll free 800-927-8314 and ask to speak with one of our financial advisors.
Retirement Capital Strategies
A Registered Investment Advisor
1190 Saratoga Ave, Ste. 140
San Jose, CA 95129
Tel (408) 551-6100
Source: This article was written by Margaret (Peggy) Stephan, CFP® – LPL Registered Representative at Retirement Capital Strategies.
Financial Planning offered through Retirement Capital Strategies, Inc, a Registered Investment Advisor.