Planning for marriage should involve more than just picking out invitations and deciding whether you should serve chicken or fish at the reception. More importantly, you’ll want to take a look at how marriage will impact your financial situation. And while there are a number of issues you’ll need to think about, careful planning can increase the likelihood that you’ll have financial success as you enter this new chapter in your life. Consider a prenuptial agreement If either you or your future spouse has or may inherit substantial assets, or if either of you has children from previous marriages, you may want to consider a prenuptial agreement. A prenuptial agreement is a binding contract between future spouses that defines the rights, duties, and obligations of the parties during marriage and in the event of legal separation, annulment, divorce, or death. A prenuptial agreement typically addresses the following areas: Assets and...
Continue readingWomen and Money: Taking Control of Your Finances
Even if you have a partner who traditionally manages household finances, it’s important to be involved in the budgeting and investing decisions that have an effect on your overall financial picture. Some credit traps to avoid: When using revolving credit, avoid spending more than you can pay off at the end of each billing cycle Be aware of hidden interest and fees When transferring balances to take advantage of low interest rates, be sure to pay off outstanding balances before the teaser rate expires Be sure to make payments on time; otherwise it could negatively affect your credit report Women and Money: Taking Control of Your Finances As a woman, you have financial needs that are unique to your situation in life. Perhaps you would like to buy your first home. Maybe you need to start saving for your child’s college education. Or you might be concerned about planning for...
Continue readingA Retirement Income Roadmap for Women
More women are working and taking charge of their own retirement planning than ever before. What does retirement mean to you? Do you dream of traveling? Pursuing a hobby? Volunteering your time, or starting a new career or business? Simply enjoying more time with your grandchildren? Whatever your goal, you’ll need a retirement income plan that’s designed to support the retirement lifestyle that you envision, and minimize the risk that you’ll outlive your savings. When will you retire? Establishing a target age is important, because when you retire will significantly affect how much you need to save. For example, if you retire early at age 55 as opposed to waiting until age 67, you’ll shorten the time you have to accumulate funds by 12 years, and you’ll increase the number of years that you’ll be living off of your retirement savings. Also consider: The longer you delay retirement, the...
Continue readingPlanning for Marriage: Financial Tips for Women
Planning for marriage should involve more than just picking out invitations and deciding whether you should serve chicken or fish at the reception. More importantly, you’ll want to take a look at how marriage will impact your financial situation. And while there are a number of issues you’ll need to think about, careful planning can increase the likelihood that you’ll have financial success as you enter this new chapter in your life. Consider a prenuptial agreement If either you or your future spouse has or may inherit substantial assets, or if either of you has children from previous marriages, you may want to consider a prenuptial agreement. A prenuptial agreement is a binding contract between future spouses that defines the rights, duties, and obligations of the parties during marriage and in the event of legal separation, annulment, divorce, or death. A prenuptial agreement typically addresses the following areas: Assets...
Continue readingThe Traits of a Good Investor and How Women Can Make the Most of Them
Women are increasingly taking responsibility for managing their own money. That includes those who in the past may have left investing to a spouse because they were busy raising a family or had no interest in the subject, but who have since found that divorce, a spouse’s death, or the need to help a parent have forced them to learn some investment basics. However, many women, including high-level professionals who are experts in their field, may not feel confident about their investing abilities.If you’re one of them, you may have more going for you than you think. Traits such as patience, willingness to confront and deal with mistakes, and recognizing when help is needed can benefit portfolio returns, particularly for a long-term investor. Even risk aversion, sometimes a problem for women who are concerned about their investing abilities, can be an advantage if it’s applied wisely. Feel you aren’t as...
Continue reading
The Retirement Income Gender Gap – Dealing with a Shortfall
When you determine your retirement income needs, you make your projections based on the type of lifestyle you plan to have and the desired timing of your retirement. However, you may find that reality is not in sync with your projections, and it looks like your retirement income will be insufficient to meet your estimated expenses during retirement. This is called a projected income shortfall. There are many reasons why women, on average, are more likely than men to face a retirement income shortfall. Because women’s careers are often interrupted to care for children or elderly parents, they may spend less time in the workforce. When they’re working, women tend to earn less than men in similar jobs, and they’re more likely to work part-time. As a result, their retirement plan balances and Social Security benefits are often smaller. Compounding the problem is the fact that women often start saving...
Continue readingA Woman’s Guide to Health Care in Retirement
At any age, health care is a priority. But when you retire, you should probably focus more on health care than ever before. This is especially true for women. Women live longer, develop certain chronic conditions (e.g., osteoporosis) at a higher rate than men, and are more apt to experience medical limitations that directly affect their daily activities.1 That’s why it’s particularly important for women to factor in the cost of health care, including long-term care, as part of their retirement plan. How much you’ll spend on health care during retirement generally depends on a number of variables including when you retire, how long you live, your relative health, and the cost of medical care in your area. Another important factor to consider is the availability of Medicare. Generally, you’ll be eligible for Medicare when you reach age 65. But what if you retire at a younger age? You’ll...
Continue readingHow Women Are Different from Men, Financially Speaking
Women today have never been in a better position to achieve financial security for themselves and their families. What financial course will you chart? It is important for women to educate themselves about finances, make financial decisions, seek professional help when needed, and implement plans to ensure that they and their families will have financially secure lives. Sources 1 The National Vital Statistics Report, Volume 60, Number 4, January 2012 2 U.S. Department of Labor, Bureau of Labor Statistics, Women in the Labor Force: A Databook, December 2011 3 U.S. Census Bureau, Current Population Survey, 2011 4 U.S. Department of Labor, “Women and Retirement Savings,” October 2008 5 U.S. Department of Labor, “Women and Retirement Savings,” October 2008; U.S. Government Accountability Office, “Retirement Security,” October 2007 We all know men and women are different in some fundamental ways. But is this true when it comes to financial planning? In a...
Continue readingWhy Women Need Life Insurance
While there are many reasons why women need life insurance, often women have little or no life insurance protection. One of the reasons for their lack of coverage may be the fact that most life insurance advertisements are aimed at men. A major benefit of cash value insurance is that the policyowner can borrow from the insurance company against the accumulated cash value, often at a relatively low interest rate. Those funds can be used to supplement retirement income, pay for college tuition, assist a child with a mortgage, or for many other purposes. However, if you take a loan against your cash value, the death benefit and cash value will be reduced by the outstanding loan balance. A reduction of your cash value could cause your policy to lapse. Why Women Need Life Insurance Today, women have more financial responsibilities than ever before. How will your family or loved...
Continue reading