Women, Take Control of Your Finances

A recent survey by Aviva USA in collaboration with the Mayo Clinic shows that two out three women are uncomfortable with their current financial situation.  While a majority of women report that they have a role in day to day financial decisions in the home, when it comes to long-term planning, most women are left out. 

Last Saturday morning in an interview on KARE 11, I gave advice to get women started on a solid financial plan.  I’ll share my tips below.  First, here’s more on the survey.

Survey reports women are stressed about finances

A strong relationship exists between women’s level of stress, how they feel about their financial situation and their overall health, according to a new survey by Aviva USA in collaboration with Mayo Clinic. Three out of four women report they are somewhat, very or extremely stressed. Among those who are extremely stressed, 82 percent said they are uncomfortable with their financial situation.

Aviva USA surveyed more than 2,000 U.S. adults – men and women – on their health habits and financial preparedness to uncover how these factors impact their overall well-being.

Additional key findings related to women are:

• The primary factor contributing to stress for women ages 30-54 is their financial situation, while women ages 55-70 list family/relationships as their top stress factor.
• Women who report being extremely stressed are 3½ times more likely to be uncomfortable with their financial situation than those who are not at all stressed.
• Fifty-one percent of women ages 30-54 admit to feeling “overwhelmed” sometimes when thinking about preparing for retirement, while 42 percent of women ages 55-70 feel the same way.

Fight Procrastination

Women say that they just don't have the time for long-term financial planning.  Women, as a whole, spend most of their time dealing with many day-to-day life decisions and don’t make time for long-term plans.  But women need to make finances in retirement a priority.

Take Inventory

Write down all your account/joint account information:  investments, bank accounts and savings accounts. Take inventory of all sources of current income and plan for the future.  For a complete inventory list, visit my website and sign up for the “as seen on KARE11” download. 

Save, Save, Save

Women must save more than men do.  Why? A few reasons:  first, because women are likely to live longer.  Wives live 8 to 10 years longer than their husbands if they are married when they're the same age.  And more than 75% of women will eventually be widows.  Also, a woman’s career is likely to be interrupted because of her responsibilities as the primary caregiver for children, or even for her parents when they get older. Consider unique savings opportunities for women, such as an IRA.

Don’t fall into the Style Trap

Don’t purchase that “in” designer bag or jacket if it’s not in your budget.

Learn to Say No

A bleeding heart can be murder on a budget. A woman will often fund her children's education before her own retirement or loan money to relatives that may never be repaid. Women need to pay themselves first – if you have ever flown, you have heard the flight attendant remind you to put the life vest and oxygen mask on yourselves first, even before you help family members.  Same situation applies here.  It’s a mistake to take money out of your retirement funds to help others. 

Always Negotiate Salary

Remember to negotiate with an employer over wages.  In general, men are more apt to negotiate aggressively for a higher wage than women.  Women deserve just as much, so make sure to negotiate for what you deserve.

Comprehensive planning is available to you when you partner with a knowledgeable professional like those at Secured Retirement Advisors. In order to help you, we have recently updated our website and now offer many FREE down-loadable resources which can help answer many retirement questions. Feel free to visit us at www.securedretirements.com and help yourself to our educational materials.  If you would like a complementary “3 Step Review” of your own retirement plan, call Secured Retirement Advisors at 952-460-3260.