It’s important for everyone to keep tabs on their finances, but it seems that women lag behind men when it comes to taking control and planning for a secure financial future. Women face unique challenges that add up to different financial needs. The National Institute on Retirement Security reports. that Odds are that at some point in a woman’s life, she will be solely responsible for her finances, whether due to being single, divorced, or widowed. Rather than have to cope when that occurs, get started right away.
Women are almost twice as likely as men to live below the poverty line during retirement. This is especially true for single and minority women
Take an active role in planning your financial future. Set goals and, work out a plan. If you are married, talk to your spouse, and get involved with financial planning. Start with the basics. Write down all expenses and income so that you know exactly where the money goes, and how much is available to put away for the future.
Improve financial literacy. Several studies have highlighted the fact that women are not as savvy about finances as men. It pays to learn as much as possible about financial planning and investment. Find a source you relate to, and read it regularly.
Prepare for the future. Take a realistic look at what you will need for retirement. Even if it’s still decades away, it is possible to work out what you might require. Use a retirement calculator to help you with this. Then work with an advisor to put a vehicle in place that will help you reach that goal – either a 401k at work or an IRA.
Protect your income and your assets with insurance. No one can predict the future, and while we hope nothing bad will ever happen, it’s wise to expect the best, and plan for the worst. Should a serious illness or accident occur, insurance can replace the lost income or pay for long-term care.
Monitor Social Security. Find out how much you can expect from Social Security and how the age of retirement affects that number. Women tend to live longer than men, so it’s wise to plan your retirement to make the most of Social Security.
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. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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