As a woman, the thought of dealing with money used to make me cringe! But the truth is that 90% of all women will be solely responsible for their finances at some point in their lives. This from a recent article by CFO4Life on “Women, Power & Money!”
According to the article, women view financial planning not as an end in itself, but as a tool for reaching life and family goals. In fact, 95% of women and 92% of men say it’s critical for a financial planner to understand key life events, needs and goals. So it’s really important for men and women to plan out their financial future with their life plan in tact.
Women are financial decision makers
Women are taking an increasingly active role in determining how their families save, spend, invest and plan for the future. In addition, most women will spend at least part of their lives on their own ” as sole earners, after divorce and as widows ” taking full responsibility for their finances.
Women control increasing amounts of wealth
Women are working ” and earning ” more than ever before. In addition, because women tend to live long lives, they have a better than average chance of inheriting assets or a business at some point.
Women approach financial planning differently
Both men and women want advisors to provide good performance, first and foremost, and to make an effort to understand their goals. A national survey found that, for women, achieving financial peace of mind is over seven times more important than accumulating wealth. Women see their investments as a way to protect and support their families and, as a result, they look for advisors who will listen to their concerns.
It’s also important to note that key lifestyle events such as marriage, divorce, aging parents, children, widowhood and career turning points affect their financial strategies. The focus on financial planning can definitely be peace of mind for many women. It’s also about protecting themselves and the people around them from uncertainty.
The Wall Street Journal wrote a story about “Retirement: Women at Risk” in May of 2011. In the article, they included this information to help understand the needs for women.
WOMEN NEED HELP WITH A WIDE RANGE OF FINANCIAL PLANNING ISSUES
Toughest tasks for women ages 56-65
Saving for retirement 71%
Juggling work and family responsibilities 47%
Caring for immediate family 28%
Caring for an elderly parent or relative 26%
Taking care of my business 25%
Outside recreational activities 24%
Volunteer work/community activities 19%
Education is key to helping women become more involved in financial planning.
Thanks CFO4Life for providing the information used in this article. CFO4Life offers individuals and businesses ˜above-and-beyond ™ service in investment portfolio management and financial planning. With over 100 years of collective professional experience, their dedicated team of Certified Public Accountants, Certified Financial Planners ®, and MBAs provides personalized and comprehensive guidance for wealth management. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. (c) Standard & Poor's Financial Communications.