Women & Financial Preparation

by Jill Carr

Women have different considerations than men when it comes to retirement and finances.

Why?

• Women have a longer life span than men, which means their money must last longer.

• Women are more likely to take a few years out of the workforce to care for children or parents.

• The gender pay gap (ugh!) means women still make less, on average, than men

• Nearly five in ten marriages end in divorce, which means women may need to depend on their own income and not their spouses’.

• Women’s social security payments are lower than men’s because of lower wages and being out of the workforce.

Women tend to be busy caring for others, and often, neglect themselves. When it comes to money and being on an airplane, women need to put their oxygen mask on first, THEN help others with theirs. To help women put their financial mask on, I would like to provide some simple tips to help them with their specific financial needs.

• Save as much as you can and do it consistently.

• Educate your self on basic financial principles.

• Figure out your financial goals and create a plan. If you are not sure what they are or how to achieve them, work with a financial advisor.

• Be a part of your household’s finances. Even if you do not pay the bills—know what you pay, where it goes, and how to find out more information.

• Protect your assets–get your estate documents in order, name your beneficiaries, create powers of attorney for healthcare and your finances, maintain insurance, etc.

• Seek counsel if you become nervous about the money you have invested in the market. Often people sell when the market is already down, out of concern that it will continue to go down. Maintaining your portfolio through good times and bad is generally a much better strategy.

• Do not help your kids (with college, with letting them live with you forever) at the expense of building your own retirement savings.

• Hire professional help when you need it.

Once you have your own needs taken care of, you can help your kids and elderly parents. Here are some tips for that:

Kids:

• Know what you need to save for a college education (look into the costs, determine strategies, financial aid, etc.). You do not have to pay for it all, but you can be there to help your kids make sound decisions.

• Help instill financial independence in your kids. Ensure they know the same basic financial information that you do. There are several tools online for this.

• Plan to protect your kids financially if something should happen to you (i.e., life insurance, etc.).

Parents:

• Help your parents think about having adequate income for caregiving needs later in life.

• Have them update their estate planning documents if it has been 5 or more years or have them work with an attorney to create their estate plan if they don’t have one yet.

• Understand the difference between normal age-based memory loss and Alzheimer’s and other forms of dementia.

• Provide education around the different ways that people try to scam the elderly, so they don’t fall prey to this.

It is estimated that women will control much of the nation’s wealth by 2030 (Bloomberg, “Women Will Control $30 Trillion by 2030 in Massive Shift for Wealth Management,” December 2024). Let’s show them that we are up for the challenge!

Jill is a passionate Senior Wealth Advisor, continually striving to find new ways to exceed her clients' expectations with her depth of knowledge in taxes, estate planning, and personal finance. She seeks to empower her clients to increase their own financial literacy and understanding of wealth management. She’s especially interested in helping younger clients and older single women who may need help with their finances.

Neither Stephens Wealth Management Group (“SWMG”), nor Jill Carr is affiliated with Women 2 Women. There can be no assurance that any investment or non-investment related content made reference to directly or indirectly in this article will be profitable, be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from SWMG. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to their individual situation, you are encouraged to consult with the professional advisor of your choosing. SWMG does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to SWMG’s website blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.