INVESTING AND THE INDEPENDENT WOMAN: TIPS & RESOURCES TO STRENGTHEN YOUR FINANCIAL FUTURES
Do you ever ask yourself if you’re enough? I know I do, of myself.
Enough at work, with families and friends, as caregivers to those we love? Are we investing enough in our careers, relationships, ourselves? Do we have enough saved for the future? The questions go on and on.
Although women are increasingly asking about their futures—and taking control of their finances—we’re still asking ourselves if we’re enough. If it’s enough. Will we have enough to take care of ourselves when we’re 60. When we’re 80. The numbers tell us so.
40% of women think they should be doing more with their finances than they are.
39% worry about saving enough to retire.
24% stress about knowing how to invest their savings to reach their financial goals.
It can all be a little daunting, especially given how women are known to live longer yet earn less than our male counterparts. The good news is that women, though they question, aren’t stuck in a sea of uncertainty. We’re jumping in and we’re taking control of our finances.
94% percent of women surveyed in a HerMoney and the Alliance for Lifetime Income study said they helped manage their household finances, investments and retirement planning.
Despite inflation and other economic issues that cause us to question, 92% of women say they plan to maintain or increase their retirement account contributions.
Just because women ARE taking the investment reigns, there are still some who doubt they have the ability to take care of their own resources, but research studies suggest otherwise: women can make better investors. Women tend to be better researchers, show more self-control with trading and holding investments longer, remain calm in down markets and stick to investment plans.
So whether you’re single and loving it, running a household or managing a corporation, here are some tips to help you stay the course.
For Young Women
· Decide that you rule the money. It doesn’t rule you. Be proactive and set monthly budgets so you can save, set up an emergency fund and start investing in your future (read: retirement planning).
· By the way, it’s never too early to begin retirement planning. Consider this scenario: Say you’re 25, working at a full-time job with benefits, including a retirement savings plan. You begin investing $3,600 a year in the S&P 500. You stay at just that amount (you don’t up it despite future raises, promotions or job changes) for 20 years. At the end of that 20 years, the total investment of $72,000 would be worth about $180,000.
For Single Women
· Avoid tapping into your retirement accounts. Fight the urge to tap into retirement accounts for an infusion of cash to buy a car or pay off debt, for example. Of the nearly half (49%) of investors under the age of 34 that said they have withdrawn from an IRA or 401(k) early, 20% said it was to pay for an education, followed closely by a medical emergency (19%), and other reasons according to Advisor Magazine. Early withdrawals from retirement accounts may trigger penalties and taxes, among other disadvantages.
· Save for a rainy day—or days. Some suggest a six- to nine-month savings pot; others recommend 12 to 18 months. While more is always better when it comes to savings, the goal here is to do what you can with what you have. Even if it’s $100 a month, you’ll soon start to see a cushion grow, which will provide a soft landing if ever you find yourself without steady, reliable income.
For the Leading (Boss) Ladies
· Create a goal-based financial plan. Women tend to be more goal-oriented when investing and building wealth—a great strength. When financial goals are defined and mean something personally, we’re motivated to reach our financial goals.
· Bring in an advisory team to be your right-hand man, er, woman with your finances. As your net worth increases, so does your need for more professional advice. Working with a trusted team ensures your holistic financial vision and end game (goals) stay on track and become reality.
We believe that ALL women can—and should—create their own financial destinies. As owner and wealth strategist of Alia Wealth Partners, Lindsey Rhea works with women to formulate strategies and select investments that best fit their unique financial goals and objectives, emphasizing strategic asset allocation based on sound principles of risk and reward.
As a CERTIFIED FINANCIAL PLANNER™ (CFP®), Lindsey also has met rigorous training and experience requirements, and has committed to the CFP Board’s ethical standards that require CFP® professionals to put their clients’ interests first.
Women supporting women.
Together, we’re our best advocates for one another’s achievements and financial successes. Contact Lindsey and her team today.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
