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In this day and age, steps toward gender financial equality have brought us a long way, but there are still some marked differences when it comes to women and investing compared to their male counterparts. Cultural expectations, societal norms, and a lack of information keep many women from making the kinds of financial decisions that would bring about the greatest success in the long run. Fortunately, with the help of the Internet, this education and information is more readily available than ever before, and women can take the reins when it comes to their financial futures. Women Have Unique Needs Women often have a different set of needs and goals than their male counterparts, including when it comes to finances. On average, compared to men, women live longer, spend less time in the workforce due to caring for children or elderly parents, and earn less over the course of their lives. So, when you make less money but live longer, you have to make different kinds of financial decisions and preparations. For this reason, women typically retire later than men; and for this reason, women need to take their needs into consideration when planning for retirement. Tip 1: Start Now In order to prepare for living many years after retirement, it is prudent for women to start planning and investing as early as possible. While it may feel like a sacrifice, being young and taking care of a family, that monthly sum that you set aside will make all the difference in your later years. The earlier you begin, the more your money can work for you, and even small amounts can do great things over the course of many decades. Don’t wait until retirement looms near to get your ducks in a row. Tip 2: Be Honest and Realistic Whether you are single or attached, you need to have some frank discussions with yourself, with the important people in your life, and with your financial advisor. Think of ways life could potentially play out, even the scenarios that are uncomfortable or sad. What if you never get married? What if your significant other goes first? What if you go first? What if you end up caring for children or elderly parents much longer than originally anticipated? Make contingency plans for tough situations. Being prepared for the worst case scenario will enable you to financially survive it if it does occur, and it will leave you in a great position if the worst never comes to pass. Tip 3: Make Sure Key Assets Are in Your Name For many married women, it is easy to let significant others take care of the finances. Not only does this leave you ignorant (and possibly stuck if tragedy should strike your husband), but it doesn’t always serve your best interest. Make sure your retirement accounts (such as your 401(k)) are in your name and are set up to sync with your own retirement date and life expectancy. This will both enable them to work hardest for you and ensure that you are taken care of in that stage of life. Tip 4: Make It Personal Finally, investing doesn’t have to be cold or impersonal. Invest in something you are passionate about! Explore different types of investments, including stocks, mutual funds, investing in businesses and other women, real estate and land, foreign currency, gold, and the many other options that are available to you. Women and investing can be a powerful combination, and by taking care of yourself and your financial future, you will be in a better position to care for the people and passions you love.
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