Women & Money

How to help wipe out worry, nurture your net worth and finance your future
According to an October 2005 USA Today poll on aging, 66% of women are worried about running out of money during retirement. And since a woman’s life expectancy is longer than a man’s – 79.5 compared to 74.1* – that fear may not be unfounded. (*Source: National Center for Health Statistics October 2001 report on the life expectancy of males and females born in 2000.) The good news is, with adequate preparation, women can help conquer their financial fears and help ensure their fiscal future is well provided for.

Step One: Peruse Your Portfolio
What will you live on when you retire? Do you know how much you need to maintain your desired lifestyle, and if so, do you know where the money is coming from? Many people expect to receive something from Social Security, followed by income from a pension plan. Other income sources may include a 401(k) plan, IRAs, Roth IRAs, mutual funds, and other investments. Now is the time to meet with a qualified financial professional to develop a roadmap for your future. Take stock of money already banked and get a clear picture of what you can do now to help reach your goals.

Step Two: Learn the Lingo
SEP IRAs. REITs. Index Funds. While you don’t have to become a Wall Street whiz to effectively manage your own money, educating yourself on the basics of saving and investing really is essential. Start at the library by checking out books on the subject to boost your investment IQ. Or you might consider a weekend seminar or online class, depending on your schedule. Educating yourself on the basics of financial planning will increase your confidence and help you set goals that are realistic and attainable.

Step Three: Confirm Your Coverage
Adequate insurance coverage and the right health and life insurance benefits are essential components of a solid financial strategy. If you’re married, discuss the critical differences between joint and single life pension and annuity benefits. Under a single life option, when your husband dies, his benefits die with him. Also, in the event you outlive him, make sure that he provides for you after he is gone.
In terms of health coverage, think long term. That same USA Today poll cited that 78% of women listed health concerns at the top of their list of fears about aging. The fact is, proper preparation for long-term health care can not only alleviate fears, it can also protect your nest egg in the event you become ill. Again, a qualified financial professional can help you make the right decisions regarding this important choice.
Anxiety about aging is normal. But allowing fear to keep you from putting a solid financial strategy together is really something to worry about. When it comes to preparing for your own retirement years, perhaps the most important thing you can do for yourself is simply that – be prepared. The pay off will lessen anxiety now and well into your golden years.