Did you know 90 percent of women will be solely responsible for their finance’s at some point in their lives according to MFS Funds? The same source says women control 27% of the world’s wealth and that number is increasing rapidly. As a female advisor for 31 years now, I have experienced first-hand the unique challenges facing these women which often center around three important areas: their parents, their children, and themselves.
Let’s start with your aging parents. For many it’s the simple things: how will mom and dad get their groceries? Who will change their lightbulbs? Mow the yard? These small questions often hint at a much larger problem, decreasing mobility often necessitates daily living support in a variety of levels.
Do your parents have adequate income to support these needs?
They also need to consider meeting their professional needs. Things like making sure their estate plan is up to date, that their will reflects their current desires, and ensuring their standard of living stays consistent through an increasingly long lifespan. This would also include managing their healthcare and being able to recognize debilitating issues like Alzheimer’s or dementia.
The next area today’s savvy female investor needs to be fluent in is financial education for their children. This means raising financially fit kids who truly understand the value of a dollar and the work it takes to earn one. We often strive to start children on the path to financial independence, while ensuring that any inheritance is received with an understanding the implications and personal values that helped to create it. We believe so strongly in preparing heirs that we’ve created programs to speak specifically to this growing issue.
The last area is one women tend to forget, taking care of ourselves! If we don’t care for ourselves, we can’t take care of anyone else. The first step is to ask yourself a few key questions: Will I outlive my money? Will my expenses increase faster than my income? How will the ups and downs of the market affect my income in retirement? How will I manage healthcare costs? And above all, how do I balance of these with the needs of my family?
These questions can be scary, but here at Prosperion we have the expertise and resources to address every one of these concerns. We believe having a strong foundation is essential and that starts with a plan. If you would like more information on any of the topics I have discussed please give us a call.
How do you measure your wealth? Most people assume there are two typical ways. The first is a simple money calculation that takes everything you own, subtracts everything you owe, and that formula gives you your net worth. Simple. Others say wealth is not a measure of the money one has but of the intangibles such as relationships, time, health, etc.