The month of October, which is designated as Breast Cancer Awareness Month, urges women to take action, seek resources, and find support for their health. We also promote that message and would extend it to encourage women to also proactively plan and take control of their financial well-being.
This is significant, especially considering that women have longer lifespans, potentially leaving them with many years to manage their finances independently. Consequently, it’s important for women to have a voice in developing their retirement plans with an advisor who comprehends their unique needs. In general, women confront four major financial challenges:
Relying on Spouses for Financial Matters
Generations of women have relied on their spouses to manage their finances. This separation of roles may be effective for many relationships, but it can leave women unprepared to handle their finances in the event of divorce or the passing of a spouse.
The average age of widowhood is 59, so participation in all financial decisions is essential. Women should have an understanding of where their money is invested and how to access it. Your wealth advisor is a good source to make sure that both partners are aware of their financial landscape, their options, and have a say in the decisions that are made regarding their future.
Conservative Investment Approach
Typically, women are more risk-averse than men when it comes to investing. This conservative approach might offer a sense of security, but it may also result in lower long-term returns.
While it’s important to invest within one’s comfort zone, advisors can help women by utilizing technology to demonstrate risk tolerance levels, explore a broader range of investment options, and potentially enhance their retirement savings.
Lower Earnings and Savings
The gender wage gap is a pervasive issue, leading women to earn less than men on average. Professional disruptions that women frequently experience, including taking time off, cutting back on hours, or switching positions to take care of children or elderly relatives, compounds this disparity. The result is women generally save less for retirement than men.
Women who want to maximize their savings and investments, make the most of their income, and prepare for a secure retirement can benefit from the guidance of financial experts.
Disproportionate Impact of Divorce
Divorce can have a significant financial impact, often affecting women more than men. Suddenly, single-income households may face the daunting task of stretching finances to cover costs previously managed by dual incomes and derail long-term savings plans.
Seeking guidance to navigate the financial intricacies of divorce, such as the division of assets, potential tax repercussions, and retirement plan adjustments, can help women build a financial plan towards a confident, independent future.
The Good News
While women face unique financial challenges, these hurdles can be surmounted with proactive planning and the right guidance.
Knowledge is power. Learning more about your finances and your financial future can help you make the best decisions possible. Our wealth advisors will listen to you, ask the right questions, become familiar with your needs and values, and be able to provide thoughtful guidance.
At Biondo Investment Advisors, we want to motivate all women to proactively plan and take control of their financial well-being.
We believe financial independence is not just about survival – it’s about thriving in every phase of life.