Are Women and Financial Strategies a Mismatch?

Nearly half of mothers in the U.S. are their households’ primary breadwinners.1 Yet only 14% of women are very confident they will have enough money to maintain their lifestyle once they retire.2

Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance.

Women and College

The reason behind this disparity doesn’t seem to be a lack of education or independence. Today, women are more likely to go to college and graduate school than men. So what keeps some women from taking charge of their long-term financial picture?

One reason may be a lack of confidence. One study found that, although 83% of women want to be more involved in their finances, only 37% felt confident about handling retirement planning on their own.3 Women may shy away from discussing retirement because they don’t want to appear uneducated or naïve and hesitate to ask questions as a result.

Insider Language

Since Wall Street traditionally has been a male-dominated field, women whose expertise lies in other areas may feel uneasy amidst complex calculations and long-term financial projections. Just the jargon of personal finance can be intimidating: 401(k), 403(b), fixed, variable.4 To someone inexperienced in the field of personal finance, it may seem like an entirely different language.

But women need to keep one eye looking toward retirement since they may live longer than their male counterparts and could potentially face higher health-care expenses.

How To Feel Comfortable About Taking Control

If you have left your long-term financial strategy to chance, now is the time to pick up the reins and retake control. Talking with a financial professional about your goals and ambitions for retirement is a good first step in the right direction. Don’t be afraid to ask for clarification if the conversation turns to something unfamiliar. No one was born knowing the ins-and-outs of personal finance, but it’s important to understand in order to make informed decisions.

I work with numerous female clients who range in financial acumen from knowledgeable investors to women who don’t know where to start in planning their financial future. I’ve helped many clients transform from financially inexperienced to clients who play an active role in their financial portfolio, and I have become good over the years at explaining complex strategies and financial jargon in layperson’s terms. Call or email me to set up a meeting to take the next step toward feeling comfortable about your financial future.

 

  1. Fortune, November 3, 2014
  2. 2015 Prudential Research Study
  3. S. News and World Report, March 4, 2015
  4. Distributions from 401(k), 403(b), and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70½, you must begin taking required minimum distributions.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2016 FMG Suite.

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