Despite their differences, women and men have at least one thing in common. They need to establish and follow a plan if they hope to enjoy a life free from financial worries.
It seems that women are getting the message and are becoming increasingly sophisticated about how they go about saving for life’s major financial events: home and auto purchases, vacations, children’s education and retirement. This is important because women’s planning needs are often different than their male counterparts. Some of the reasons, according to the Women’s Institute for a Secure Retirement (WISER) and the U.S. Census Bureau, include:
These circumstances dictate that women become personally involved in their financial well-being and take an active role in developing a strategy to assure financial security. Developing a comprehensive personal financial plan is the first step to achieving this goal. This is a five-step process that involves working with a financial advisor on:
Gathering information – Determine the current situation – special family requirements, assets and liabilities, financial needs, current and anticipated income, and tolerance for investment risk.
Too often, women lack confidence when it involves the stock market so they avoid it, often making the mistake of investing too conservatively. The more a woman learns and understands about the market the more comfortable she will be using it to reach her objectives.
Because of divorce and extended life expectancies, most women will be responsible for their own finances at some point in their lives. According to David Bach, author of “Smart Women Finish Rich,” 25% of all widows go through their husband’s death benefit within the first two months. And, consider that the average age of widowhood is 56.
These statistics demonstrate the need for women to become personally involved in achieving their own financial security. Establishing and following a financial plan tailored to specific wants and needs is the surest route to obtaining this goal.
Article provided by Robert W. Baird & Co. for Evan Guido, Financial Advisor at the Sarasota office of Robert W. Baird & Co., member SIPC. He has more than 8 years of financial services industry experience, and can be reached at (888) 366-6603.
Evan R. Guido
Vice President of
Private Wealth Management
One Sarasota Tower, Suite 806
Two North Tamiami Trail
Sarasota, FL 34236-4702
941-906-2829 Direct Line
888 366-6603 Toll Free
941 366-6193 Fax
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