Why Many Retired Women Live in Poverty - And What You Can do to Prevent It

Retirement for women is different than for men, and unless this fact is recognised and acknowledged, a woman's retirement may become something less than golden. My intent in this article, is to discuss what we can, even must do, to assure our years in retirement are some of the best years of our lives. 

There are many reasons for us living in poverty during their 'Golden Years'. Below are some you may recognise, and suggestions and solutions you may wish to consider. 

Problem #1: Many women rely too heavily on our spouse 

For income during the working years, benefits during retirement, and for ongoing financial guidance and advice throughout the years, with unforeseen and tragic results in many cases. (3 of every 5 elderly women face retirement without a husband). 

Problem #2: Work Patterns 

We often have irregular work patterns, due to marriage, children, care giving and other responsibilities. This often leads to us not earning full retirement benefits, or any benefits at all. Even when we do earn and contribute to our retirement accounts, our benefits tend to be a fraction of what men receive because of our lower earnings and complicated schedules that penalise us for moving in and out of the workforce. For these reasons men's pensions tend to be upwards of two and a half times that of women. 

Problem #3: In all too many cases a divorce occurs, sometimes even later in life, and the financially inexperienced woman is set adrift in unknown waters. 

For wealthier couples, the assets are divided in what appears at first glance to be equal, but the woman's share may include the family home with a hefty mortgage payment, while the husband receives the cash equivalent to rebuild his life. In addition, the ex-husbands income is not disturbed, while the woman's income may be dependent on temporary alimony and/or child support. Whatever income we are able to generate by going back to work, often with little or no job skills and being out of the work force for many years, brings lower pay, therefore lower future retirement benefits. 

Problem #4: Widowhood upon the husbands death the retirement fund can cease or decrease (geography dependent), putting the widow in a financial bind. 

One-third of women who become widowed are younger than 60. Half of all women who become widowed are younger than 63. Widowhood can severely jeopardise a woman's economic prospects. 80% of women live longer than their spouses and often by many years. The risk here is if we try to maintain our current living standards, we may deplete our savings over time. As health expenses or long term care needs arise we may be forced to reduce her standard of living, or spend down assets in order to get assistance. Neither of those choices bode well for our quality of life. 

Solutions, Recommendations and Strategies 

First, educate yourself about the family finances. Make sure you have a good overview and understanding of what assets are owned, how they are titled, who the beneficiaries are, etc. 

Prepare yourself to manage your own finances, as the odds say you will need to do just that at some point. 

Make sure you are named on all family accounts as owner, co-owner, or beneficiary. This establishes your legal right to these assets should the marriage end in divorce, death, or even if your partner becomes incapacitated. 

Next, build what I call the Three-legged Stool of Lifetime Financial Security: 

1) Inflation protected lifetime income 

2) Growth/income investments for future needs 

3) Long term care protection in the form of assets or insurance, or some combination of both

Some of the solutions to ensure your lifetime security could consist of: 

• Your social security retirement benefit 
• A secondary inflation adjusted income you can't outlive 
• A prudently managed growth/income account to keep pace with the cost of living
• A creative and flexible method of protecting your potential long term care needs 

5) Time tested strategies of ensuring you pay no more than your fair share of taxes 

Article Source: https://EzineArticles.com/expert/Steve_Hood/81257

Ladies- Build Your Money Machine

Girlfriend: a 'Money Machine' is a must, and timely to get one. Think of this as a well-oiled piece of equipment that churns and burns as it works for you, even when you don't. A properly tended producing machine is a constant, reliable source of cash flow. If you nurture it correctly, you'll eventually reach a point in your life when your 'Money Machine' takes over for you. When that happens, you no longer have to work. Instead, you'll work only because you love what you're doing. That's financial freedom!

The secret of creating your money machine is the "spend less than you earn and invest the difference" approach. Each month, you give part of your earnings to your investment that compose your money machine. You make sure to regularly feed your machine before you "donate" cash to the nearest multiplex or restaurant or department store. Having your own money machine will allow you to stop working to support yourself so that you can have time to pursue the other things you love. Maybe you'd like to kick back at some point and offer your time for your favorite charity or artistic endeavor - and your well tended sleek machine gets you there. 

And, to do this it takes a firm financial plan that takes you to your dreams. Life is definitely too short to delay pursuing passions, the things that excite you in life, and right now is key. Who wants to be a slave to money-to be held captive to a corporation, institution, or government office by a salary? Most of us would pursue a variety of interests if money were not a factor. We each dream of a lifelong quest-to learn a new skill, to do volunteer work, to start a small business, or simply to have some free time to go out and have fun. With a well-running money machine, you can do it. 

The money machine is designed to be a holding pen for cash that will be invested and doubled again and again until it's sufficient to generate the sum you will use to meet your monthly expenses through out your life. The incredible ability of money to grow works to your advantage, and it is the grease that makes your machine hum. This is the purpose of your well designed machine -to let you walk away from having to go to work each day to earn income. Your money machine will assume the role of providing income to pay your living expenses. At this point, you will have arrived at financial freedom, and once you set up your own personal engine, you will have it for life. 

Furthermore, the money machine allows you to serve your community or other ways that you are inspired to give back. Part of being a well-balanced person-of having a smooth ride on your journey of life -is not only enjoying personal benefits from your money machine, but also allocating some of those funds to good deeds. When we have ample financial resources, we can and must give back some to the society that has helped nurture us and supported our economic well-being. After all, everything we've gained in life has been a gift to us. Giving and sharing are also part of the power and joy of money.

 Your money machine isn't a piggy bank designed simply to hold a bundle of cash. Nor is it the location of one single investment. It is the sum of all your investments wisely invested to enable solid, steady returns. Your designer machine will be producing during the years when income is needed and wanted-and with a surprisingly low level of maintenance. With a well tended money machine, you'll enjoy that good feeling in the pit of your stomach that comes from being able to say, "I've guaranteed my financial future, and I feel great about it." 

Of course, you won't want to take your money machine for granted. As in other areas of your life, if you don't contribute, you don't get anything back. Try having a relationship in which all you do is take. Or try having a job where you do nothing but expect to be paid. Neither one will last very long. In the same way, your money machine depends upon your being a giver, not a taker. I'm talking about being not just a one-time contributor, or an on-again, off-again, sort-of contributor, but a consistent contributor. I'm talking about making the development of you machinery a priority in your life. Because, by looking out for your financial future, you're also caring for your soul and your health. 

When you feed your money machine, you can't dump just any old investment into it. Imagine someone with terrible eating habits, who puts lots of fats and sugars into his or her body. Over time, this person loses energy, slows down, and may even become ill because his or her body is not properly fueled. Your money machine is like your body: You can't put garbage into it and expect a healthy return. 

What are the "fats" and "sugars" of the investment world? There are two kinds of unhealthy investments to avoid: (1) investments that are excessively risky-investments in which you could lose all of your money-and (2) investments that have an inadequate rate of growth-investments that simply won't pay you very much. 

The creation of a Money Machine begins with your first investment, and with the plan you devise to add to it regularly. It is not something that can solve your financial problems all at once, like winning the lottery. It's a process. It might take ten, fifteen, or twenty years to fully fund your machine, depending on how much and how often you contribute to it, when you first begin, and how wisely you select your investments. Building your money machine to create continuing cash for your life, is embarking on a voyage toward financial freedom. 

Article Source: https://EzineArticles.com/expert/Joan_Perry/216137

3 Tips for Women to Become Empowered With Money

Naivety, or innocence, puts women in danger because we can easily be taken advantage of. This may be intentional or unintentional, but it is certainly easier to sell something (like an insurance policy, real estate, an investment or a car repair) to someone who doesn't understand it and doesn't ask questions. So maybe the agent isn't intentionally trying to harm us, but if you don't know what questions to ask, neither of you will know whether it's right for you or not. 

Women can easily gain the empowerment they desire by gaining the right knowledge. Knowledge is confidence. Knowledge is safety. Knowledge is power. 

Three ways women can become empowered with their money are to get educated about money, overcome their innocence and work with trusted experts. 

Get Educated About Money 

Where were you taught about growing, maintaining and protecting wealth? Probably not in school or by your parents. In fact, there have been very few places to gain financial education unless you wanted to major in accounting or finance in college (I know... sounds extraordinarily exciting, right?) But now you have more options, there are many places on-line to help you learn about insurance, investments, taxes, estate planning and more. The important thing is that you do it. Take action. Don't ignore your retirement, expose your assets, and take unknown risks with your investments because you are too nervous to learn. You can talk to Femvestorsglobal. but don't just do nothing. 

Overcome Innocence 

Do not be taken advantage of because you don't understand something. Also, don't let your heart blind you and leave you exposed in your close relationships by ignoring warning signs of a money-mess boyfriend. Gain confidence in yourself by taking trustworthy actions. Your innocence will disappear with a good financial education, trustworthy advisers and mentors, experience and the willingness to take charge of your money. The more confident you become, the more empowered you will be. You are not a victim, you are a warrior! 

Work with Femvestorsglobal so we can support you prior to meeting any advisor 

90% of the time the advisor will be a man. You must invest in good advice so that you learn and you are protected. We support you so when you come to Interview advisers, check their credentials, get referrals, and most importantly make sure you are comfortable working with them and feel respected and heard. Often women are dissatisfied with their advisers because they don't feel heard or understood. Make sure this is not the case for you. To continue to grow your self-confidence and empowerment, gain an awareness of your own money habit and patterns as well.

Article Source: https://EzineArticles.com/expert/Angie_Grainger/1086314

Ladies- we need to Create Our Dignity Money

So what is "dignity money." This is the calculation of money you'll need down the road in order to live a very minimal, luxury-free life each month. It's your insurance, so to speak, against destitution, facing poverty - or being referred to as the 'bag lady'. 

You can figure out how much dignity money you'll personally need by determining the smallest amount that it will cost you to live each month. Add up what you spend each month for food, transportation, taxes, housing, telephone, utilities and insurance. Don't include any frills. 

One very important basic is your home. If you own your house or apartment, your mortgage or maintenance is likely to be one of your major expenses; it is perhaps your single greatest expense. Paying off your mortgage greatly reduces your monthly outlay and therefore reduces your total dignity-money requirement. For many women, a preference to eliminate mortgage debt is the more safer and secure option. Having to not pay any mortgage yourself is an essential step to achieving financial independence. Calculate your dignity-money needs both ways-with a mortgage and without. Depending on the current size and condition of your living costs, you may find that financial independence may arrive for you only after the mortgage is paid, whether that date is five, ten, or more years from now. 

Your dignity-money calculation can be a rough number; that's okay. It might be $1,000 a month or $10,000. Each person's sum will be different. In any event, your dignity-money figure is the target level of income for the first stage of creating your financial freedom. Your goal is to generate this amount of cash each month going forward so you won't have anxiety about the basic care of yourself in the future. If you already have your dignity money, then you can feel at ease. Knowing that you're financially secure should give you a good feeling all over and relieve whatever stressful flutters you might have had about money. If you have yet to establish your dignity money, then it's time to begin working toward it. Believe me, no outing, new trinket, or other toy is worth the cost of not taking this step. 

How do you figure out how much you need in order to generate your dignity money? The calculation is simple. Multiply your monthly dignity money number that you've calculated by 12; then add a 0. This provides an estimate of how much money you'll need to invest in order to generate the appropriate monthly income. For example, if your minimal monthly expenses are $4,000, then multiply $4,000 by 12 and add a 0. That means your yearly expenses will total $48,000. 

You will need $480,000 in order to provide you with dignity money. Why? At $4,000 a month, your yearly expenses will total $48,000. The rate of return on investments varies, of course, but history shows that a yield is approximately 10% each year. This means that you will need $480,000 in order to pay you an annual income at the rate of 10% per year, or $48,000. The same formula-monthly expenses times 12, plus a 0-works for any expense level. If your minimal monthly expenses are $6,000, you require $720,000: $6,000 times 12 is $72,000; adding a 0 brings it to $720,000. If your monthly expenses are $1,500, then you'll need $180,000. Do your own calculation. 

This calculation requires one important adjustment-deductions based on the inflation rate. Inflation gradually shrinks your money's value. Therefore, whatever figure you compute will be worth less in the future. Consequently, the amount in you will have to be somewhat greater to compensate for the effects of inflation. Unfortunately, no one can know for sure how high the inflation rate will be in the future. A high inflation rate, like the one we experienced in the 1970s, will have a strongly negative effect on the value of the money generated, just like today, we are seeing between a 5- 8% inflation rate in most western countries. Noting that the moderate inflation over the last  10-15 years (averaging around 3% a year) isn't nearly so powerful. The power of inflation grows significantly as time passes. If you are only one or two years away from the time when you plan to ease out of working, inflation will have little effect on your plans. But if you expect to work for two or three more decades, inflation will make a noticeable difference.

Let's say you calculate your dignity money to be a whopping $600,000. That seems like a lot of money, the thought of how to amass such an amount might be daunting. But if you save this $600,000 gradually, rather than all at once, it will be much less intimidating.

Lets have a look at a couple of examples: 

Rachel enjoys her museum work, and David enjoys his work, too. So they see themselves working into their mid-sixties. That's about thirty-six years from today. Using the Rule of 72, we calculate that if their money grows at an average annual rate of 10% (a conservative average return on stocks), it will double every 7.2 years. In thirty-six years, when they reach sixty-six, their current $10,000 investment can double five times: 

o $10,000 = $20,000 

o $20,000  = $40,000

 o $40,000 = $80,000

o $80,000 = $160,000 

o $160,000 = $320,000 at age 66 

So with their current savings of $10,000 alone, they're halfway to their goal! Now all they need to do is squirrel away some money each month in order to meet the other half of their goal. It is likely Rachel's income will increase with raises, promotions, and career moves, and David's contracting business is expanding rapidly. This should dramatically raise his annual profits. As they both eventually accumulate more cash to invest, they will gain more momentum. Another plus: They have only about $50,000 left to pay on their mortgage, so they will own their house by the time they want to ease out of working full-time. 

Lynn said: 'To grow my own dignity money, I estimate that I will probably need $700,000. That means I'll have $70,000 a year to live on." To advance to the next step-to live more freely, to travel several times a year, and to entertain and frolic without guilt at some of her favorite stores-in other words, to maintain her present lifestyle-she will have to have more cash invested - in excess of $1 million. And she likes to dream even bigger, and is inspired for several million dollars. The important thing to note is that  you need to begin with securing your financial necessities and then moving on. And the tools are at hand to make this process easier than our fears would lead us to believe. 

Betty figures she'll need less dignity money than Lynn does. She earns $76,000 a year as a Lawyer at a small public interest firm that specializes in environmental law. Betty grasps the principle of spending less than you earn and investing the difference and is prepared to do exactly that. Right now, her basic, no-frills monthly expenses total $3,500. She is looking for $420,000 to establish her dignity money. "If I cut back my expenses, I think I can eventually squeeze out $10,000 to invest," Betty announced. "That means you have to really shave those credit cards," I reminded her. But if Betty is able to commit $10,000 a year, she'll be in great shape by the time she's sixty-five. The benefits of securing income are pretty obvious. It's possible to handle it all along the way and still have a good time enjoying life as you go.

Article Source: https://EzineArticles.com/expert/Joan_Perry/216137

Do You Want to Know the Six Easy Steps Into Your First Investment Property?

Thank you for your curiosity about what the six steps are to your life as a Property Investing. As an active investor I know it's not about the property itself, it's about the dream. Property is just the express bus to financial independence, to wealth and to creating a lifestyle full of freedom, choice and the ability to do what you love. 

Have you actually taken the time to ask yourself what financial freedom means to you? Is it having enough money to pay for a fabulous lifestyle, is it having enough income producing assets so you never have to worry about money again? Is it having enough money so you can quit your job, so you too have the time to discover your divine purpose, do what you love for a living and contribute your message, your cause. 

For me it's empowering women in their finances, which is a catalyst for empowerment in all other areas of your lives. So you too can become financially free, to take of the mask you wear every day and to stand in your feminine energy, become authentic and inspired to share your unique message, your gift, your purpose with the world. 

There are so many great property programs in the market place today from successful investors teaching people how to invest, yet only 10% of people who invest time and money in these programs will take action and actually buy a property. Why is that? I realised that 80% of investing is psychology or the right mindset and only 20% is the actual investing. This is why the market has created a need for Property Empowerment. 

After going through the process myself for a third time, it occurred to me that buying an investment property can be a very daunting, costly and time consuming process, when navigating it alone. It's no wonder that only approx 5% of property investors buy more one or two properties and only a staggering 1% retire financially free on with more than five. 

It also occurred to me that many women, regardless of how committed you are, might be put off by the uncertainty and the contradictory information available. You give in to the fear of making a mistake and allow yourselves to be swayed by the well meaning dream stealers to not only give up the challenge, but all the dreams that go with it. 

So to make your venture into property investing by following my six step program. It's about creating the right environment and the right mastermind team of active investors who specialise in residential property investing. Leveraging against their combined experience and knowledge to help you on your journey to property wealth and success. 

Whilst you engage a team of experts, you must however, always remain 'in charge' of your property investing business. Lay a solid foundation for success by empowering your mindset as the most vital first step, then educate yourself in the basics of property, finance, tax and structure. Once you have a sound knowledge of the above, you can leverage against the knowledge and resources of relevant experts to make it happen quickly and efficiently. 

The 6 Step Property Program Includes: 

Step 1: Creating an Empowered Investor Mindset 

Step 2: Education and Information 

Step 3: Finance Strategy 

Step 4: Portfolio Structure 

Step 5: Property Purchase 

Step 6: Property Conveyancing 

Step 1. Creating an Empowered Investor Mindset 

The first and most vital step in becoming a successful property investor is having the right mindset. Successful investing is 80% mindset or psychology and only 20% strategy, which in our case is residential properties. The market proves this to be true over and over again with all the failed property investors who thought it was just about buying a house.

The Oxford Dictionary defines "mindset" as a habitual way of thinking. It has also been described as an attitude, disposition or mood; an intention or inclination. I think this is a very fair description. Having the right attitude about property investing or any other aspect of your life to the point where it becomes a "habit" or behaviour is vital for your consistency, determination and eventual success. 

You must empower your mindset with specific regard to your values, decisions and beliefs around money and investing. Work with Femvestorsglobal to identify and work with your unconscious values in quite some detail to ascertain whether creating wealth is something you value and whether you are motivated toward a desire for abundance or away from your fear of scarcity and lack. If creating wealth is not a an unconscious value, no matter how hard your consciously try, you will not succeed. 

Work with a qualified Neuro Linguistic Programming (NLP) coach who specialises in finance or wealth creation and with their many tools, identify and eradicate any deeply held decisions and limiting beliefs that have unknowingly held you back in the past. Then instill new, more empowering beliefs and lock them all into place using targeted goal setting and visualisations. 

Step 2. Education and Information 

Once you have the success mindset of champions it's time to head into the classroom to learn about Property, Structure and Finance. Although this is when you will leverage the time, knowledge and expertise of many experts throughout the program, it is essential that YOU remain in charge of the property investing business. 

You need to treat every investment property, with its income and expenses, as though it were a stand-alone business with you as the Director. You don't need to be an expert in all aspects of investing, but it is important to be educated and well informed. 

You must understand the basic concepts of property, finance and structure so you can both understand and communicate with the experts in these specific areas of your investing. Get educated in such topics as property basics including property selection criteria and the Wealth Creation Strategy. Look into the basic principles of company and trust structures and which is best suited to your personal circumstances. Look into the multitude of investment mortgage options, the principals of each and shortlist which will suit your current financial and investing situation best. 

Researching and becoming informed will not only increase your financial and property vocabulary but will give you a very sound understanding of property investing, saving you time and money when eventually dealing with the relevant experts. Do not however, use the excuse of lack of knowledge and not knowing enough, to get stuck in analysis paralysis, know when to say enough is enough and get started. You never stop learning about investing, so expect that you will learn along the way. 

Step 3. Finance Strategy 

Now that you have a successful investor mindset and a good basic understanding of property, structure and finance it's time to look in detail at your overall finance strategy which can make or break your success as an investor. With the expert guidance and advice of a finance broker who specialises in investing, not mum and dad mortgages, firstly review the mortgage on your existing home (if any) with the aim of refinancing and releasing equity to be used as a deposit and a buffer for your first investment property. 

Then with your shortlist, look at the best option according to your particular financial situation for financing your new investment property. Once you have chosen the best option, formally gain pre-approval or approval in principal for your future investment property, before moving to the next step. 

Step 4. Portfolio Structure 

Now that you have your finance in order it's time to look at what structure you are going to purchase your investment property in. This is the step that most people skip or don't even realise they need until after they have 3 or 4 properties and it's all getting very messy and complicated with the tax office. Here is where you will rely on the property and tax accountant to determine the right structure for you specifically. Whether you should buy in your name, multiple names, in the name of a company or a trust or a combination of both. 

The structure for your portfolio is as important as the concrete foundation under your investment property. It needs to be just as strong and it needs to be laid first, or like the actual foundation, it becomes very difficult and costly to fix any problems after you have built your home on top. 

You will need to verify this for your own geographic region, If you decided to transfer a property from your own name into a trust you would in effect have to "sell" the property to your own trust which incurs all the normal legal and buying and selling costs including having to repay the stamp duty.. ouch! 

Step 5. Property Purchase 

Now that you have your investor mindset, your sound knowledge, your finance strategy and your structure in place, it's time to finally go property shopping... Yahoo!! This is contrary to a novice investor who at an open house is lured by glossy brochures, the smell of an open fire, baking bread and percolating coffee, falls in love with a property first and then worries about the rest later. As a professional investor, you buy with logic not with emotion. 

In all areas of my own professional investing I assign each task to companies who are specialists in that area. Their teams are so committed and so passionate about their specialty that they spend all their resources sharpening their knowledge, skills and expertise, thereby becoming industry leaders in their field. 

Think of it this way; if you want a haircut you go to a hairdresser, if your pipes are blocked you call a plumber, to service your car you go to a mechanic and these are all relatively minor expenses. Even when selling a home, people engage the services of a local real estate agent they trust. So I don't understand, when spending hundreds of thousands of dollars, people insist they are more qualified to find, select and negotiate on a quality residential investment property than a specialist buyers agent. Unless you are an expert this can be risky and extremely time consuming as you spend 12 months searching for a property. Not to mention expensive as the market keeps going up and up as you search, requiring a bigger deposit. 

I advocate using a professional who wants to see you succeed. One who specialises in the specific area you are investing in, who has all the network and personal relationships required to find you a great investment, with any luck, under market value. 

They will select a short list of properties with a history of good growth that fit within the selection criteria and then it's a simple matter of making an informed choice. Depending on the property type, you can then organise to have your building, pest or strata inspections undertaken as necessary. Being a new investor, or if you are new to the particular buyer's agent, I suggest you organise an independent valuation to confirm you are paying fair market value. 

Once a property is chosen, the agent will use their extensive negotiation skills to negotiate on your behalf for the best possible price and settlement conditions. If the offer is accepted you celebrate!! but if not, then you start over again. 

Step 6. Property Conveyancing 

Congratulations, your offer has been accepted, the deposit has been exchanged, the champagne is flowing and you are now officially a property investor. You are on your way to financial freedom. So now it's time to kick back, relax and watch the capital growth right? Well, not quite... There is still one very important step to go. 

You now need to legally transfer the property from the vendors name into your name or the name of your trust. You can choose either a solicitor or a conveyancer to do this on your behalf. They will do all the necessary searches and checks required to ensure that the property you purchased is exactly as stated in the relevant contract in your country. They confirm that there are no structures that are not government approved, any unexpected water or electrical easements, caveats or any other nasty surprises. 

They will also be responsible for coordinating settlement between you, the vendor, their solicitor and both lenders...Now that is no easy feat! Settlement, usually 30 to 90 days later is when your loan is fully drawn down and the balance of the purchase price and all associated finance and legal fees are paid. 

To further protect yourself, this is also the time to review your insurances and estate planning and create or update your will to include your trust and portfolio. This will ensure that your specific wishes are respected with regard to your legacy that you have worked so hard to create. 

So that's it... a simple, accelerated 6 step process that you can follow, no matter what your level of property experience or what town or country you live in. Start your journey to wealth and empowerment through residential property, so you can become financially free, become authentic and free to create the life of your dreams. So what are you waiting for?

Article Source: https://EzineArticles.com/expert/Luca_Ricciardiello/172537