Do Women Need a Female Financial Advisor?

Would it surprise you if I told you that women are better money managers than men? It starts with a different relationship with money. Women do not view money as the ultimate goal, tend not to flaunt it with objects that are symbolic of success, and don't involve it in their identity to the extent as men. Becoming a millionaire is usually not the final accomplishment and stopping point for women. Instead, money is a tool that enables women to enjoy the benefits and freedoms of life. 

When I commenced my Investing journey and spent time researching on various forums, it became clear to me that women are more careful and thoughtful about risking their money. We are not trying to score a goal during extra time in the market, but look for stability and safety in an investment. "How safe is this," was the most common question and should be asked at every turn. So, women tend to have a similar relationship with money. That is, for us women, money is not a game to see who has more, nor is it a status symbol. Since, men just view money differently, their riskier mind-set interferes with the core money relationship women have. 

But, what bothered me the most about being researching the financial industry and meeting Financial Advisors, is that women were treated differently and even inferior by other men. It was not uncommon to see a male financial advisor talk to my husband when we as a couple met for advice. I understand that it is a male dominated field, but there is no excuse for this behavior as I was practically ignored, despite undertaking all the financial aspects (including investing) in our household. Speaking with other women, they have all had similar experiences.

In retirement, low risk investing is not only practical, its essential because you don't have time to start over. A study found that female hedge fund managers out-preformed men by 10% over a nine-year period in 2019. A hedge fund, originally named to hedge against market losses, has evolved. Now it is a managed fund (not indexed) that is less regulated in terms of using leverage. Using leverage dramatically increases investor risk. 

The study points out four primary differences. 

1. Women are less competitive and less preoccupied with beating an index

2. Women take fewer risks in the market as with other areas of life

3. Women do more homework and stay in investments longer

4. Women realise they are not in control

Realising you are not in control of all factors gives women the perspective to not panic. So, women need a female financial advisor because: 

1. Your relationship with money is similar on an emotional level

2. Safety and sustainability of your money is the priority, especially in retirement

 3. Female advisors tend to establish a more personal relationship with clients

4. Women, with the same experience as men, are better investors on average

There is a deeper sense of trust with another woman

Article Source: https://EzineArticles.com/expert/H_Lee_Johnson/2155805

Women Facing Poverty in Retirement

Women often reach retirement age with fewer pension benefits and retirement assets than men. All workers need to save more for retirement, but women face added challenges because we have lower earnings, experience higher job turnover, and have a longer life expectancy. Women generally begin retirement with smaller pensions than our male counterparts but usually live longer than men. Our retirement pot is intended to be a supplemental source of income in retirement, but too many women are forced to rely on it as our sole source support in retirement. As a result of these issues, elderly women in the many western nations have high poverty rates. 

Women Save Less than Men for Retirement 

Among the reasons that women save less than men is that women earn less than men; lower earnings equal lower retirement savings. The Equal Pay Act was passed between Mid 60's and early 70's in the majority of western nations and yet half a century later, women make only 81 cents for every dollar earned by men. According to the National Women's Law Center, "This persistent pay gap translates to more than $10,000 in lost wages per year for the average female worker."

Equal pay is not just a women's issue; it is a family issue. Women make up half of many countries' workforce and mothers are the primary breadwinners or co-breadwinners in nearly two-thirds of families. Wage discrimination harms many families by limiting their economic security now and their retirement security in the future. 

Women Have Different Work Patterns 

Women generally spend less time in the workforce due to family care-giving responsibilities, from raising children (and grandchildren) to caring for elderly parents. Also, women are more likely to work in part-time jobs that don't qualify for a retirement plan. Such job interruptions mean less opportunity to save for retirement and to contribute to a retirement fund. 

Married Women Often Rely on Spouse's Savings 

It is not unusual for many married women to rely on their spouse's retirement savings. Under traditional pension plans, benefits to married workers were paid as a lifetime annuity with benefits for the spouse. You will need to understand the details within your spouse's retirement plan to find out if you qualify to claim any entitlements on that plan should your spouse pass away and you receive the benefit automatically, 

You will also need to ensure you discuss the retirement fund should divorce proceedings arise, please don't just accept the house as a settlement without discussing all options prior to an agreement being reached.

Women Invest More Conservatively Than Men 

Studies indicate that women invest more conservatively than men. Women tend to emphasise safety over return. They often save less for retirement and then sacrifice long term growth with a low risk investment strategy. The interest rates on a bank account will not suffice given current inflation rates.

Women Need More Money for Retirement 

Women have longer life expectancies than men. Life expectancy for women now is approximately five years more than that for men. Consequently, women spend longer in retirement. For married women, 70% of them will outlive their husbands. Unmarried women (including widows) age 65 and older rely on a retirement fund for 50 percent of their total income. Because women tend to live longer than men, they are in greater danger of outliving their other sources of retirement income. 

Startling Statistics 

The latest Census Bureau data show a significant and alarming increase in poverty and extreme poverty among women, men and children. The shocking statistics is that 1 in 5 working women retire with $0.

Changes Needed to Close the Retirement Savings Gender Gap 

• Continue to work to eradicate the wage disparities between men and women 

• Increase retirement coverage for lower-wage, part-time and temporary workers

• Provide additional retirement support for women whose primary role is care-giving

• Require policy changes for countries which do not support an easy transfer of retirement funds for partners of spouses

• Allow tax-free transfers of retirement assets between spouses

• Provide investment education specific to the overly cautious investment strategy chosen by many women. 

Ultimately, the basic saving strategies are the same for men and women: start saving early, contribute as much as you can to your company retirement plan and don't take money out of your retirement plan to meet short-term needs. 

However, it is especially important for women to stay focused on saving for retirement as pay inequity and the work patterns of many women reduce our future retirement income. 

Article Source: https://EzineArticles.com/expert/Stacey_L_Spencer/784370

Investment Tips for Women

Avoid procrastination and become one of the many Femvestors. 

Yes, ladies we are busy. We're managing our careers, raising a family, furthering our education, running a home or fostering a business. Who has the time to think about investment options? Often these professional women have no workable investment plan. 

Compared to men, women face different obstacles when it comes to planning for our financial future and retirement. We face different life challenges and investment risks. We also live longer, which means we need to consider different investment strategies when planning for retirement. 

Here we've listed a few investment tips for women who want to take the plunge, but don't know where to begin. 

Start now! 

No matter how young you are, it's never too early to start saving. Waiting for something? Well don't. When planning for your financial future, the old adage 'There's no time like the present' holds true. But if you haven't managed to start investing from a young age, then that don't let it stop you from starting now. Late is better than never if you still need to plan your investment strategy. The time is now; avoid procrastination. 

Plan your financial goals 

Think about your future and educate yourself about your investment options. Where do you want to be financially in 5, 10 or 15 years time? What sort of lifestyle do you envisage? How would you like to see your wealth grow? What are your retirement plans?

 Using the SMART system for goal setting can help you realise objectives that are specific, measureable, attainable, relevant and timely. 

Get clued up 

Inform and educate yourself. The internet is loaded with useful resources that will help you plan your investment strategy, including our blogs and daily posts online. All of these cover the investment basics.

Know your options 

Do research into equities, money markets, property and bonds. These words might not mean much now, but if you want to make a smart choice, then knowing your investment options is a good place to start.

Get involved 

Many women consider it traditional that the man should take care of all financial matters, but this is no longer appropriate. Only you can be responsible for your future financial security. By getting involved in the financial decisions of your family, you can learn and educate yourself about your investment options. 

Join an investment club 

Investment clubs offer a community where people can pool their resources and knowledge for the purposes of investing. First-time investors can also learn about their investment options and different markets from more experienced club members. 

Women-only investment clubs are also growing in popularity. Enquire with your friends to see if they can recommend a club for you. Meetup is a good starting point if you are struggling.

Get professional "Fiduciary" advice 

Once you have done your homework and thought about your investment goals, make sure you also get the advice of a trusted advisor. Being prepared before you meet with them will mean you get the most out of the session(s). But while it's good to prepare yourself and to know the basics, there is no replacement for professional advice, especially when it relates to taxes, estate planning and fees.

Source: https://EzineArticles.com/expert/Kathy_E_Roberts/1202759

Women Can Love Investing (Yes Really!)

Ladies- We can learn to love investing. Investing is a passion of mine. I find it empowering, freeing, and confidence building! You can learn to have your money work for you and make you money, so you're not dependent on working the rest of your life. It's awesome to see money being made with your computer and not from your labour! Once you learn to invest, it's like having your own golden goose. The golden goose provides more money for you over the years and works hard, so you don't have to. 

Did you know women are better investors than men? There have been studies of men's and women's investment clubs and women consistently made more money with their investing. The reasoning is that women think through their investment decisions longer before selecting them and hold their investments longer. 

Another reason women make good investors is because investing is like shopping. We're used to comparing prices, knowing brands, and watching for sales! Investing is the same way. You figure out what you want and you wait for a good price to buy it. Heck, you do that every week!

99% of women will have to manage their own money at some point in their lives (the average age of widowhood is 59). Do you want to learn about money when you're grieving and least able to deal with it or when you choose to? 

Making money is simply a function of 3 things: the money you have to start with, the time you have to compound, and the rate you earn. The more of any of those 3 things you have, the easier it is. If you don't have a lot of money to start with, but you have a lot of years before you need the money, or you can compound (earn) a high rate, you can build wealth. 

If you want to learn how to swim, you can't cling to the side of the pool. Eventually you have to let go and try to swim. When you get good at swimming, you can eventually go into the deep end. You don't try that on the first day! It's the same thing with investing. If you want to build wealth, you can't keep your money in a savings account. You must give yourself time to learn to invest and let your money create a golden goose for you! 

The reason it's important to take some measured risk with your money, is because it allows you to get a higher return. For example, if a savings account was paying 1% interest. At 1%, it will take 72 years to double your money. Not a great way to accumulate money to retire! But the stock market has returned 10% on average over the long-term, which will double your money in a little over 7 years! That will build wealth - the savings account won't - and you will be able to have a comfortable retirement. That's why you need to invest in stocks! 

I often hear women say they don't feel "worthy" of having a lot of money. I think a lot of this stems from the fact as women, we don't know our self- worth. Studies have shown that men know what they are worth in their job and women don't. At first, it was surprising for me to hear this, but then it made sense. Women are taught to be of service, to put our needs behind others, to be polite, to defer to others. If we translate that behavior to money, it means we don't feel worthy. We give the power away. We will have fears around it and "trust" others to handle it for us. We don't need to do that. Not anymore. 

I'm here to say women, you can do it! You can overcome your fear of loss or overwhelm. Investments don't require much time to manage once you've got the hang of it. I spend less than an hour a week handling my personal investments. However, most of my time is spent reading about investments and looking for new opportunities than tweaking the investments themselves. 

I started in my late twenties with $0, I read lot of books and attended several training courses about millionaires and investing. I also looked at where Billionaires invested, listened to podcasts and taught myself how to invest in stocks and became a millionaire at age 38. It begins with having a wealthy mindset and ends with creating your legacy. Only one step involves investing! Did you know that you don't even have to have a lot of money to start investing? You can open an investment account online for free. There's no excuse not to learn! 

If you have a mentor, it can help take the fear of overwhelm away. A mentor can show you how to navigate easily, just like a tour guide can in a foreign country. Over time, you will gain confidence and realise it's not as difficult as you first thought. Like anything with practice, it gets easier - and the rewards are much better! You can learn to build serious wealth which will make your life a lot easier, less stressful, and give you a better marriage and family life. 

What is a stock? A "stock" is simply a share of ownership in a company (think of companies like your favorite brands in handbags, shoes, food, etc.). Companies sell shares of stock in their company when they want to raise money. Suppose designer Stella Mcartney wanted to open boutiques around the world? She could sell shares in her company and raise the money to do that. 

The "stock market" is simply where lots of companies are selling shares. Initially they sell shares from their company to raise the money and from there investors buy and sell them to and from each other. It's kind of like eBay, except you're buying and selling shares of companies!

But isn't it risky? Isn't it like gambling? There is risk, but you can mitigate risk several ways - buy spreading it out among multiple companies you own, by buying companies that have a low fluctuation of price, by not owning just stocks and adding in other types of investments. Some people speculate, but most people are not trying to "get rich quick", they are investing for the long-term, which is the safest way to invest. The longer you stay invested, the more likely it is you will make money with your investments. If you stayed invested during the crash of 2008, the stock market is up 80% from the low point. 

The Dalai Lama has said, "The Western woman will save the world." I believe that's true. Women are cooperative, intuitive, and we like to share with others. I see a lot of women giving to the less fortunate, like helping women start businesses with "micro" loans. The average loan someone in a foreign country needs to start a life-changing business to feed their family is only $27! The women in villages teach others in the village how to run a business, so the effects are far reaching and magnified. 

Isn't it time you empowered yourself to learn about money and investing? Isn't it time you felt your own worth and independence? Learning to create wealth yourself will do that for you and investing is a way you can build a lot of wealth. You just have to decide to do it and find a mentor to reduce the learning time and improve your success rate. Soon you will have your own golden goose and love investing too! 

Article Source: https://EzineArticles.com/expert/Linda_P._Jones/303130 

Strategies For Women To Secure Your Financial Future

Regardless of marital status and current financial situation, even if you are well off right now things can change fast- redundancy, divorce, separation, business foreclosure, medical conditions, high household debt or even debts incurred by your partner that you are liable for (such as gambling or personal loans). 

Nevertheless, here are some techniques to secure your financial future. Noting that the below will go along way towards protecting you, no matter what life has in store: 

If you're married, open your own savings account, in addition to the accounts you have with your husband or partner - which should include a joint emergency fund worth about 10% of your combined income - put aside 10% of your personal annual income in your own name, Why? Because either one of you can clean out a joint account at any time furthermore, having a savings account in your own name - without your husband or boyfriend - ensures that you have funds available in case of disaster, illness, or disability. 

Get your own credit card. Having at least one card in your own name that you use regularly establishes your credit history; if you're married, it will give you some protection if anything goes wrong with your husband's credit. Good credit is crucial for everything from getting a low mortgage rate to opening a mobile phone account. Open a retirement account if you do not have one. 

Here is a scary statistical study: 2.5 million US women age 65 and over live in poverty - more than twice the number of men in poverty in that age bracket. So, whether you're single or married, you need your own retirement account. Not only does your own retirement account protect you in case of divorce, its fun to control the investment options. Join your plan at work if your company offers one. Although many experts recommend saving 10% of your income for retirement, even if you're saving only the minimum, a little bit will make a big difference over time. 

Plan for the worst, if anyone depends on your income or your husband's income - like your kids, an aging parent, or even yourself - you both need enough life insurance to support those dependents in case one of you dies unexpectedly. Most single people without kids don't need insurance, unless they support another family member. 

A rough rule of thumb: Insure your husband/partner for 7 to 10 times his salary, if the family depends on your income; use the same rule for your own life insurance. And if either you or your partner is not working, consider a minimum of $250,000. Most people won't necessarily need life insurance forever - usually just until your kids can earn their own income. That's why it's a smart move to buy "term insurance," which covers you for a set period of time - say, 20 years. 

If you support a family member who will never be able to live independently - like a disabled child or parent - or if you'd like your spouse to be protected through your old age, you should consider "permanent insurance," such as whole-life policies. These cost more but cover you for your entire life as long as you pay the premiums.

Get organised. In an emergency, you don't want to waste time rummaging for important papers or passwords. Once a year, list all your bank accounts, credit cards, loans, investments, insurance policies, and other financial data in one place - keep it all on paper with any PIN numbers or access codes in a safe-deposit box or other safe location, or in a secure computer file. You also need to list the name of your lawyer, where your will is, and details about any other assets you have. 

Build your own relationships. Develop your own relationship with any financial professionals that you use in your family, The worst time to try to make that happen is after an emotional situation, like a death or divorce. Attend all appointments and sit in on all phone calls with financial planners - and ask as many questions as it takes for you to truly understand your financial picture. Above all, don't sign any financial documents without knowing what they mean. If you take steps now to build relationships and understand your finances as a whole, you - and your money - will be better off. 

Lastly, invest your money to the wisely. Here are the things to be considered in choosing your investment options: Security, Legality, check for hidden charges and Low transaction fees, offers premier services, Convenience and Stability

Article Source: https://EzineArticles.com/expert/Christopher_Panlaqui/148070