Women Entrepreneurs Need a Path to Financial Freedom
Entrepreneurship offers women a unique path to financial independence and empowerment. Many women entrepreneurs in America have achieved significant success, but they also face unique challenges—particularly regarding long-term financial security.
Women who carve their professional paths—out of necessity or ambition—face a series of distinct financial challenges. For those who choose to remain single, those challenges can become even more daunting.
“One of the most pressing concerns for single women entrepreneurs is saving enough for retirement. Without a spouse or partner to potentially share financial responsibilities, the pressure to secure your financial future falls entirely on your shoulders,” says Michael Norton, Senior Vice President, Investments, at David Lerner Associates, Inc.“ This makes planning for retirement an essential task that should not be overlooked.”
While growing, women-owned businesses still face significant hurdles, including access to capital, mentorship, and other resources. These hurdles often carry over into personal finance, where many women—especially those who are single—face additional pressure when it comes to long-term savings, including retirement.
Here are five ways a woman entrepreneur can improve her future financial well-being:
Prioritize Savings
If you’re self-employed, you don’t have the luxury of an employer-sponsored 401(k). It’s crucial to start setting aside money for retirement as early as possible.
Consider setting up a Simplified Employee Pension (SEP) IRA or a Solo 401(k), offering tax benefits and allowing for significant contributions. The earlier you start, the more time your money has to grow, and the less pressure you’ll feel as retirement approaches.
Don’t Overlook Insurance
Many women entrepreneurs underestimate the importance of having adequate insurance. Whether health, disability, or life insurance, having the right policies in place can help protect your business and personal assets.
Without a partner to lean on financially, it’s especially important to ensure you have coverage for unexpected events that could derail your financial plans.
Create A Succession Plan
If you plan to retire, you need to ensure your business will continue to operate successfully without you or that it can be sold for a comfortable retirement cushion. Single women entrepreneurs may need to put even more thought into this since they may not have a family member to step in.
Work with an investment counselor to develop a business succession plan that will ensure the best outcome when it’s time to retire.
Budget for Long-Term Care
Women tend to live longer than men, so you may need to plan for a longer retirement. Additionally, as a single woman, you’ll be entirely responsible for your care as you age.
Consider long-term care insurance or set aside extra savings to cover the cost of medical and personal care in your later years. Planning for these potential expenses now will save you from the stress of scrambling to cover them later.
Diversify Your Investments
Many women entrepreneurs pour all their time, energy, and finances into their business, but it’s important not to have all your eggs in one basket.
Diversifying your investments outside of your business can help ensure you have multiple income streams when it’s time to retire. This can include stocks, bonds, real estate, or even passive income-generating activities.
Spread your risk and boost your potential returns by looking beyond your business for long-term financial growth. Consult an experienced investment counselor to set up the best investment strategy for you.
Women Entrepreneurs have contributed immensely to the American economy. At David Lerner Associates, we’re here to help you take control of your financial future. Whether you need advice on setting up a retirement plan, understanding insurance options, or diversifying your investments, our financial experts can guide you every step.
Don’t wait—start planning for your retirement today by contacting us for a consultation. Together, we can help ensure your financial future is as bright as your entrepreneurial dreams!
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.