Kids, Parents & Money

Members of what is being called the "sandwich generation" are coping with balancing their own needs with the needs and expectations of family. These individuals are often "sandwiched" between the needs of their parents, who may require assistance with daily living tasks or medical care, and the needs of their children, who may require financial or emotional support. 

Within the next decade, the population over age 65 will continue to grow. Increasing life expectancies also means that more people are likely to have chronic health problems and family involvement in their care. 

This sandwich situation calls for open inter-family conversations to help ensure that money is managed thoughtfully and effectively, as well as cooperatively. It also means staying aware of your own financial plan when it comes to the increasing costs of medical care for your parents and education for your children.

Generous Boomers - Severely impacts our Retirement

Exactly how to teach children about money is a dilemma for many parents.  In fact, some baby boomers are concerned about how the support they give their grown children may impact their own golden years. Although they have these concerns, boomers think helping their adult children is slowing down their retirement savings.  One reason boomers don't see the impact on their retirement savings may be that they are tapping into "day-to-day" spending money and not dipping into retirement accounts to fund their children's needs. But, could some of that money be used to save toward retirement savings?

 

Lets Talk Money

Discussing finances can be complicated. Each generation thinks about money and the need to talk about it with other family members in ways that have been shaped by their upbringing and societal norms. An 86-year-old, for example, probably has a much different view of debt than do their children or their grandchildren. He may question why his 28-year-old grandson uses a credit card to buy new clothes even if he's already deeply in debt. Although talking about money may be a sensitive subject, good things happen when families discuss money. It's important to approach the conversation in an open, non-judgmental way. While finances are a taboo subject for many reasons, "harmony can be realised through understanding and communication," In some cases, families may find it helpful to include a neutral third party, to act as a facilitator.

 

Key points about families and finances:

1. Members of the sandwich generation cope with balancing their own needs with the needs of their parents and children.
2. Generosity to family is only natural but you need to plan for it.
3. Have conversations about money with family, because open dialogue about money benefits everyone
4. It may be helpful to include a neutral third party to act as a facilitator

 

Take Sarah, for example, a 46-year-old divorcee who supports her two adult sons. Sarah's financial advisor told her, "Let's deal with this now, or you're going to be making some really tough choices in five or 10 years," 

"You need to tell your children you can't be their sole source of financial support." The best way to avoid these complicated situations is to do what may seem uncomfortable: Talk honestly about money. No matter how you do it, what really matters is that you start the conversation and keep it going. "The money thing, from my perspective, is as much, if not more, about communication as it is about the money itself," 

Boomerang Children

While many people in this age group 18-30 may still be in school and have not yet moved out, others have returned home believing they can't afford to live independently because of high housing costs, credit card debts and student loans.

Tips to help you transition your adult child into financial independence:

1. Have an agreement that spells out the living arrangements and household responsibilities.
2. Be clear about what financial responsibilities children will have when they move back home (e.g., paying rent or a portion of utility expenses).
3. Require that children make specific progress toward paying down debt and adding to their savings.
4. Agree on a plan for the future.

Making a Better Sandwich

Femvestorsglobal can help you determine what financial needs you will have based on your own goals and unique family situation. For instance, you could consider an education fund, or purchasing long-term care insurance for your parents. You may also need to think about other health-care expenses and estate-planning issues with your parents. We help guide you and your family through these issues and decisions while helping you keep your own retirement planning on the right track.

Financial Planning Challenges that Women Face

If you were to guess which issue women worry about most right now would you guess kids, family, our partner being faithful, health, time management, mental health or stress, or maybe even equal rights? 

The answer is...... our finances. 

This response may or may not surprise you now, but consider the following list of financial issues unique to us:

• We are more intimidated than men about financial issues 
• We earn less money than men (82 cents in the $)
• We are less prepared for retirement as we have less money to retire on
• We live on average 8 years longer than men 
• We don't know who to trust with our finances so we tend to leave it in the bank or spend it
• We are more conservative investors than men
• It is more challenging for single mothers, even more if you are a working parent
• We are caring for elderly parents 
• Our health insurance plans cost us more
• We tend to defer to men regarding long term financial decisions, even though we manage the daily household finances 
• Money may have been managed by our spouses  when married and then we do not know how to manage money if we end up divorced
• The finance Industry doesn't really cater for women and we generally don't trust the men in suits
• Women of Colour are the most dis-advantaged statistically when it comes to equality and earnings

A study by the National Center for Women and Retirement Research showed that women investors were more worried than men about running out of money in old age, preferred more conservative investments, wanted fixed/steady returns, were more unnerved by stock fluctuations and worried more about investment decisions. 

Due to this, our retirement years are severely impacted as we have earned less money, therefore we have less to retire on whilst we live longer.

Most and Anthes note that according to the Administration on Aging "...half the elderly widows now living in poverty were not living in poverty before their husbands died. 

The picture is even worse for older women in many minority groups.

The next generation of retirees may have been raised in an environment in which men handled the money decisions. 

Despite more women actually pay the weekly bills, we tend to have little knowledge of the larger family finances such as retirement plans, insurance, annuities, etc. because we defer this to our spouse's to make the decisions. 

It is essential for women to understand the 'big picture' of their finances, especially for retirement, divorce, or death of their spouse. 

Because we earn less than men, we are less prepared for retirement, and receive smaller retirement benefits, we need to make sure that our husband's retirement benefits will pass to us if our husband dies first. 

Because we may be more intimidated about asking questions of our attorney or financial advisor, we may miss crucial details (such as single-life annuity which may bring higher levels during the husband's life but that ends when the husband dies first), or incorrect beneficiaries on life insurance policies. 

During a divorce, we may be more concerned about custody issues and keeping the house than our future retirement and may agree to forgo retirement plans. 

Single parenting brings a whole host of financial challenges, including lost wages from parenting responsibilities and childcare and babysitters. 

If the extra expenses and possibly lower income are not included in the divorce settlement, as single mother may find that she is unable to keep the house and she loses the two most valuable assets: the house and her retirement plan. 

Women not only make less money than men, our health plan may cost more than for men due to mammograms, the cervical-cancer vaccine, Pap tests and pregnancy related services. 

This is unfair, but while the inequity exists, we must make an extra effort to contribute the difference to a Health Savings Account or savings program to avoid using credit to pay for the added medical bills if needed.

Another huge drain on women's finances is caring for our aging parents. 

More women care for aging parents than men. 

However distasteful it may be to condense a daughter's love for her parents into a discussion of money, this issue must be addressed so that women can prepare. 

Because of the aging baby-boomer population, these numbers will soon become staggering. 

If you add caring for young children into the mix at the same time, the financial results can be devastating. 

Because of the special issues facing women, it is crucial that we educate ourselves about finances and the realities of financial gender inequity and plan for our future. 

The male-dominated financial services industry is just beginning to realise the unique financial planning issues for women. 

This is where we come in ladies, to ensure you have the financial education so you have the knowledge you need to become financially fabulous.

We support you with the basics of financial education and ensure that you find trusted advisors that understand your issues and are helping you plan accordingly. 

Don't be afraid to ask your advisors questions (we put a guide together on this exact topic so you know what questions to ask and are fully aware of the process). 

Now is the time to begin planning for the future: 

• Have a plan 
• Increase your knowledge and understanding of financial matters 
• Utilise trusted professional advisors to implement your plans  
• Regularly monitor your progress

Femvestorsglobal is your starting point to your financial journey, we will ensure you reach your "Moneymoon Destination"

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

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

Women Over 50 - 5 Tips For Financial Independence

Financial independence is the goal of most people especially as we approach retirement. Once we can see that turning

retirement age is just around the corner, thoughts of financial independence seem to become more frequent. Unfortunately, some of these thoughts are more than that. 

They are mild forms of panic attacks and financial anxiety, especially if the retirement nest egg isn't looking great. 

While these concerns affect all people, women over 50, especially those who are single, becoming financially independent is important for our survival, if we are desiring a comfortable retirement. And why shouldn't they be. 

Working for most of our life, retirement should be a reward for our hard work. But if the retirement pot is a bit empty, what can we do to fill them so that our senior years are not on "Struggle street".

For women over 50, here's 5 tips to help you create financial independence: 

1. Create More Income 

Yes it is easier to create wealth by having more income or a higher paying job. However, for women over 50 it is sometimes harder to move into a higher paying job- based on our age, qualifications or prolonged employment gap if we took time out to support family members. 

Perhaps an online or home based business could provide some extra cash, or a part-time job. 

2. Invest Your Surplus 

There are many courses and associations to assist women over 50 to learn how to invest their surplus income to provide for a better retirement. Look for such associations in your local area and start taking an interest in the share market, cash management funds and real estate. With time this surplus correctly invested will compound to build you a nice nest egg.  Femvestorsglobal is an amazing support network of women, in terms of commencing your investing journey. We hold your hand along the journey so you can take control of your finances sooner rather than later.

3. Money Is Taxing 

Make sure you have a good accountant and/or tax advisor to give you great advice on the best investments offering the best tax advantages. While women over 50 need extra income to invest, it is also important to cut your expenses especially by paying lower taxes.

4. Get More Out Of Your Time 

Having more time is a dream of most people. But there is only 24 hours in a day. How do you maximise your time especially with earning money. You engage the power of leverage. 

If you can earn additional income over and above you main job' you will create more wealth. But you are still exchanging your time for money. And there is only one of you. 

What if you could 'employ' a team of people whereby you could earn a percentage of their income. As well as leveraging people you can also leverage time - more specifically time zones. Why not have your team not only where you reside but also in different states and countries. So when you are asleep, your team members in another country are working and you're earning as well. Home based online businesses can offer such an opportunity.

Alternatively, (and I appreciate this is not for everyone!), you could relocate overseas to a country with not such a higher standard of living, so you can accumulate more money with an online business. You have the ability to work anywhere, whilst reducing your monthly out-goings/bills. Ultimately, our money will go so much further,

 5. It Takes Two To Tango

Going solo in life does have some advantages, however, it can also have it's limitations. Creating wealth or extra money can be one of those limitations. 

Sharing experiences and creating opportunities to jointly build wealth is more enjoyable when you're not on your own. 

Note that Women over 50 should never have a sub par retirement. There are ways to ensure this doesn't happen. 

The great opportunity is that there is still time for many of us over 50 to have financial independence. We just need to take action sooner rather than later.

Article Source: https://EzineArticles.com/expert/Greg_N_Reed/245120

6 Critical Areas of Financial Advice for Women

With more women working and our income being just as important as our partners for stability of the home, we need to consider:

Who would look after our children if they were seriously injured or died? 

What would happen if we were suddenly unable to work and bring in that income? 

What future plans could not be fulfilled if our income stopped? 

If a mother dies whilst our children are still very dependent, the emotional affects are bad enough but if you work and your income stops then the financial consequences are even greater. 

It is usual, even today, that we still remain responsible for the majority of the child care, the shopping, cooking, cleaning, washing, nursing, booking of doctor and dentist appointments, taxiing to and from school and clubs, organising holidays, birthday parties and presents - you get the idea. To have to employ someone to provide for each of these services and pay for them at a going rate would be astronomical but many women fail to insure ourselves. 

What about illness? Few employers provide any form of sickness protection meaning that in the event of a long term illness, you may receive some form of subsidy (depending on your geographic location and employer) or alternatively, you require private private insurance to cover you.

We all have future financial plans - the holiday we want, the car we are going to buy, when we can afford to retire etc and these are based on an assumption that we will continue to work and have money coming in. So if the money stops being received then these future financial plans can no longer be achieved. So insuring your ability to work and earn is vital. Don't leave it too late. 

Retirement

Traditionally women have neglected our retirement arrangements, relying on our partners to build up sufficient rights to provide for a combined old age. With the increase in divorce and women deciding to remain single the need to provide for our own retirement is now essential. 

In retirement everyone has their own individual personal allowance so even if a woman retires with a significant other, it makes sense for both to have an income that makes use of the tax allowances. A retirement fund is required on so many levels as it is the only savings plan that gives an immediate uplift when invested because the government gives tax relief on top of every individual contribution.  

Put Cash to Work 

It is important to have sufficient money on deposit to cover day to day needs and a little extra for emergencies - the washing machine always knows to break down just as the overdraft limit is reached. But with interest rates being so low large amounts of money should not be left on deposit because it is not working. 

Women tend to be more cautious and can shy away from investments considering them to be complicated and risky. This is not the case, there are interest based investments i.e. low risk, right up to individual stocks and shares in single companies with a wealth of investments in between. 

To make money work it needs to have a spread of investment which will include Cash, but long term it will not keep up with inflation so adding other asset sectors, such as Equities, will offer a better opportunity for real growth over the medium to long term.

Make a Will

So many people think that they do not need a Will because they do not have that much to leave, but a Will is about ensuring that an estate goes where it should on death. It also ensures that any estate is dealt with quickly and efficiently. Dying intestate (without a Will) means that a set procedure is followed for the distribution of assets, which does not necessarily match a person's desired outcome. Also, sorting out a Will is the first step to reducing any inheritance tax liability on the estate.

 After hard work and sensible investing most people want to be able to pass on their assets to the next generation. Unfortunately, there is a limit to what can be passed on before beneficiaries have to pay inheritance tax. There are many ways in which the value of an estate can be reduced but this has to be done with the luxury of time so it is never too early to look at such plans. 

By looking at financial affairs early it is possible to save inheritance tax and ensure that family reap the benefits from assets that have taken a lifetime of hard work to accumulate - don't pay more tax than has to be paid to the tax man.

Get a Power of Attorney 

A lasting power of attorney (POA) defines who is responsible for an individual should they become mentally or physically incapable of dealing with their own finances or day to day needs. It is a simple way of giving peace of mind. Regardless of age, an accident or illness can happen that means that an individual becomes vulnerable. This is when a power of attorney will step in. If a POA is not in existence then legal representatives have to apply to the Courts who appoint a deputy to manage the individual's property etc, this takes time and costs more money all at a time when the family do not need any more hassle. 

As we are all living longer it means that it is now more likely that either our mind and/or body will give up on us. It is never too early to put a POA in place and if there are elderly relatives then POAs should be discussed with them too. 

Get Cashback 

When shopping online instead of going directly to the shop try a link to a 'cashback site'. Online retailers pay the cashback sites for referrals and then the cashback sites will pay part of this to the purchaser; receive money back for something you were going to buy anyway. Never join a site that asks for a payment upfront. Insure yourself and your income to protect those you love, it costs less than most people think and act now to get the benefit of female insurance rates. 

Regardless of what life throws at you safeguard some of your income, reduce your tax liabilities so that life after work  provide what you want it to. Don't accept poor interest rates, you can do better. Don't be frightened of investment, it doesn't have to be risky.  

With careful planning, potential Inheritance Tax liabilities can be considerably reduced or indeed, mitigated completely. 

May you have a long and healthy life, dying without the need of a lasting power of attorney but if it is required the family will be so glad that you have the foresight to deal with it. 

Finally, make the most of what is on offer and get Cashback where you can! 

Article Source: https://EzineArticles.com/expert/Zanne_St_John_Marchmont/1416746

24 Financial Tips for Women

As women, we must plan for the expected and have a contingency plan. We must identify possible scenarios that could occur and develop solutions on how to deal with them. 

More than 80% of women will at some point in their lives have sole responsibility for their finances. 

Every woman can and should know how to manage her own finances. 

We need to become empowered with financial knowledge which will help us make the best financial decisions throughout our life. 

Here are 24 ways for us women to manage our finances:

Spending/Budgeting 

1. Create a budget or spending plan to control spending. Make your plan flexible to accommodate for unexpected expenses and include savings goals. Include monthly expenses and debt plus your monthly income

2. Create an emergency fund to cover monthly expenses for at least 3 months

3. Balance your monthly income and outgoings and document every transaction, including credit/afterpay transactions and trips to the ATM 

4. Reduce spending by 30-50%. Spread spending for large purchases over several months to ease the burden. Buy more needs vs. wants and reduce your credit card debt

5. Set both short-term and long-term goals such as paying off a bill and saving for a property

Debt 

1. Pay down debt and get current on late accounts. Keep debt (excluding rent/mortgage) at 15% or less of your net monthly income. 

2. Keep credit card balances at 20% or less of the credit limit. 

3. Pay more than the minimum monthly payment. 

4. Pay back loans. Consider using student loan forgiveness programs if applicable

Banking 

1. Pay bills online

2. Use direct debits where possible

3. Open an account with overdraft protection 

4. Save, save some more and save some more

Estate Planning 

1. Create a will to being setting up estate planning when you have long term partner, moreso when you have children

 2. Create a medical directive to identify your medical wishes

Investing 

1. Max out your tax advantaged retirement plans. Commit to saving a set percentage of your income, so when your income increases, your contributions will also increase 

2. Control your risks through diversifying and investing in various index funds that are a combination or low, medium and high risk to limit your losses

3. Focus on long term growth. Leave your money untouched for the next 5 to 10 years to see the benefits of your money growing

4. Invest as much as you can in tax-deferred retirement plans. Your money will grow faster and you can afford to invest more now because you won't have to pay taxes on the money until you retire 

5. Once you have decided how much to invest in each type of asset, rebalance often to your original percentages, particularly after a large market shift, upward or downward

6. Plan for the future and always have a plan A, B and C

Support and Emotions 

1. Develop a support network (friends, family, church members, join support groups and a financial network etc.) to get advice, support and encouragement

2. Think rationally and without emotion. Calm down and think logically about how to deal with your finances

3. Don't blame others for your financial mistakes. Take accountability and responsibility for your actions

Article Source: https://EzineArticles.com/expert/Harrine_Freeman/52122

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

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

Empowerment, Equality and Your Finances

 The slogan "girl power" has been used for decades to encourage and celebrate women empowerment, independence, and confidence. The term used most often relates to sports and employment; however, new studies are showing that women need to exert their girl power when it comes to finances and financial planning. 

A recent study released by UBS shows that 58% of women worldwide defer long-term financial decisions to their spouses. This study included nearly 3,700 high-net-worth married women, widows and divorcees in 9 countries. The results of the study showed that 85% of women were responsible for the day-to-day finances; just not the long-term. 

What is really interesting is the generational span of this survey and, most notably, the generation most likely to allow someone else to control their decisions: millennials! 

Millennials are a generation well known for promoting equality and empowerment. Unfortunately, the survey results indicate the helicopter-style parenting millennials were raised with, where someone else is always ensuring their well-being, has bled into the financial realm. 

59% of millennial women aged 20 - 34 are more likely to allow their spouse to take the lead compared to 55% of women over 50. 

The general excuse from the younger women is they have "more urgent responsibilities than investing and financial planning". Even more contradictory to the equality movement is they "believe their spouses know more about long-term finances than they do". 

The challenge this arrangement poses is the lack of preparation and understanding should a life event such as death or divorce occur. The report noted that 74% of the widowed and divorced women it surveyed reported "discovering negative financial surprises after a divorce or death of their spouse." Hindsight resulted in 74% of these respondents wishing they had been more involved in long-term financial decisions while they were married, rather than trying to navigate them while coping with such significant life changes." 

The ideal solution is for both partners in a relationship to be aware of both the short- and long-term aspects of their finances. Whether you are married, engaged, common-law or committed, financial planning is another part of creating a responsible long-lasting arrangement between two parties. 

In this age, knowledge really is power. So be powerful, take control of your money. 

Like the saying goes, the first step is recognizing the problem. Take the next step in addressing the problem. 

 Article Source: https://EzineArticles.com/expert/Doug_Buss/1032256

A Woman Needs Cash

Are you thinking - how much money will I need to have invested so that I reach a point in my life where I will no longer have to work - and maybe I work only because I chose to? Imagine - you get up every morning knowing that you completely design your day and that your financial needs are handled. Will you want to alter your lifestyle a few years from now?

Let's say you're now forty years old. You're single with an annual income of $60,000. Your closet holds clothes you adore, you eat out occasionally, go to the movies on weekends, go to concerts every now and then, and enjoy a vacation away from home once a year. Or perhaps you're married with a joint income of $100,000. You and your Partner get away on weekends, drive two cars, play tennis, entertain friends as well as generally travel each year (excluding Covid periods). 

Now, how much cash will you need in order to continue that lifestyle once you stop working? The temptation is to say, "A lot." But how much is a lot? And where is it going to come from? There's an old saying about how you find wealth: You can marry it, inherit it, or earn it. (Of course, you can also steal it-but stealing rarely works for long run, and we're going to keep things honest here.) Let's say the only wealth you have and are likely to have is what you earn. And with your $100,000 salary, you spend about $6,000 a month for mortgage payments or rent, car payments, clothes, food, entertainment, and credit cards. To maintain this lifestyle, you'll need to have invested $1 million by the time you stop working so that at a (fairly typical) 10% rate of return, you and your husband can continue to receive the same income as you do now- $100,000 a year. 

Similarly, with a yearly income of $60,000, you'll need to have invested $600,000 by the time you ease out of working in order to support your lifestyle. 

Basically, then, you can add another zero to whatever you currently earn to determine a ballpark figure of how much you will need to have by the time you ease out of working so that you can maintain your present cash flow. 

Of course, inflation changes that canvas. You won't know what the rate of inflation will be at the time you decide to stop working, but inflation has been running at an average rate of 3% per year for the past decade. A moderate inflation rate, like the one we've experienced over the past decade, will increase the amount of savings you will need by a greater or lesser extent, depending on how far into the future you plan to live on the cash flow from your investments. 

Now, that $1 million we just discussed might seem like a whole lot of money. But let me tell you about a jewel for your financial treasure chest. This second gem is called the "Rule of 72." It's a simple mathematical calculation to help you understand the growth of your money. Here's how it works. Take whatever rate of return you expect to earn, and divide the number 72 by it to determine how many years it will take for your money to double at that rate.

For example, let's say the rate of return you use is 10%, as an average rate of return in the stock market. Divide 72 by 10. This equals 7.2. That means it will take almost seven and a half years for our money to double at that rate. Why use the stock market? Because it's the fastest and most proven way to double your money. A savings account at a bank currently averages 1%, and it would therefore take seventy-two years for your money to double. Underlying the Rule of 72, then, is the principle that a fair rate of return makes a significant difference in the growth of your money. 

The Rule of 72 is a handy tool for forecasting the growth of your money and determining its future potential for you. And it exemplifies the power money can have for women. Who would want to miss the opportunity to put this resource to work in her life?

 Voila!, by adding a zero to your current income you will determine how much money you target to save - and by saving dollars in an investment account - and monitoring the growth of this money on a yearly basis you can determine how quickly you will be a woman with cash and the financial freedom that you can create for yourself. 

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