Compared to their male counterparts, women have about 30% less saved by the time they retire, according to a separate report by TIAA. If we all planned our financial lives under the assumption of staying single, I wonder if we might be better off — regardless of how our respective love lives unfold. Once your long-term goals are established, incorporate smaller steps to help with achieving them. When you complete a goal, you should feel a sense of accomplishment. That’s why setting smaller, incremental goals will lead to “small victories” that can dampen anxiety and help you maintain a positive outlook.
Women, on average, earn less than men, which makes it harder to save for retirement. On top of earning less money, women are more likely to take time off from work to raise children or care for elderly relatives, which can further reduce their earning potential. Financial advisors must go beyond numbers-only discussions and create meaningful personal connections by addressing their life and family issues. Engaging in conversations that involve active listening, clear communication, and real-life examples can build trust and empower women to make informed financial decisions that align with their unique financial goals. Attentive listening is another critical element of effective communication.
Read more about investing in ETFs for beginners here.
Your plan needs to be effective, and a partnership with a trustworthy financial planner can help you get there. An experienced advisor can assist with quantifying goals, crafting a plan for reaching them, and even reducing risk through appropriate investment choices and insurance. They have concerns that “they’re usually trying to sell you something,” and “don’t like the high pressure sales tactics.” Working with a qualified financial planner, however, can really help get your finances on the right track. They key is to find a planner you feel comfortable with and know what questions to ask.
Career interruptions also can cause women to lose out on potential raises and reduce how much they’ll collect from Social Security. When you earn less, you have less to save—and the natural inclination is to guard it by choosing investments that are more conservative. Over the long haul, conservative investments tend to have lower growth potential.
In 2023, the Retirement Wealth Academy found that approximately two-thirds of all the people registered for in-person retirement and financial education workshops were female. Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail. Without a portion of your paycheck going out the door each month to pay interest on your loans, you’re able to cover your normal expenses more easily and, hopefully, have some money left over. Initially, facing your financial situation can be difficult, but creating a debt payoff strategy will help you plan and motivate you to become debt-free. More than anything else you do, reducing your debt to zero is how you attain true financial freedom. Your first step should be to pay down your highest-interest debt, then gradually tackle the rest.
This includes reputable industry sources, select financial publications, credible nonprofits, official government reports, court records and interviews with qualified experts. Interestingly, while whiskey was one of the worst luxury performers last year (3%), over a 10-year period, whiskey had the highest investment return, with prices increasing 373%.
Financial independence—theirs and yours—starts with grasping the inflow and outflow. Working with a financial planner can provide valuable guidance and peace of mind.
Women are not content to simply rely on the men in their lives to provide for them; they want to take control of their own financial futures. The CFP board reported in 2022 that only 23.6% of all CFP professionals are women. Becoming more financially literate, learning to negotiate and keeping a foot in the workforce while raising a family are all viable strategies for women in various stages of their careers and lives. For taxpayers who got off to a late start with retirement planning, the additional contribution — known as a “catch-up contribution” — allows them to make up for some of that lost time. Meg Mara, a millennial money coach and founder of Wholesome Goals, told Annuity.org in an email that the most effective way for women to boost their retirement savings despite the wage gap is to increase their income.