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Are
Women’s Financial Needs Different?
Now that we are fully functional in the
world of business, many women ask if their financial
needs differ from their male counterparts. While
female attitudes and experiences are often different,
both men and women should understand how to create a financial
strategy that will help them reach personal goals. And
both men and women rely on the same tools and techniques
that make up the basics of financial planning.
Here are some of the key
differences that men and women may bring to investing:
1.
Traditionally, women
haven’t had as much experience managing money.
Until about 30 years ago, most married women did not work
outside the home. And, as a rule, they didn’t get
involved in the family’s financial decisions, either.
Many women – even those with their own incomes
– were raised to expect that the men in their lives
would take care of investing.
But things have changed. Whether or not a woman has her
own income, she needs to know how her family’s money
is invested. That’s because most women will have
to manage money on their own at some point in their lives.
2.
Women’s family obligations
usually come first. Studies show that
men consistently put more away for retirement at a younger
age than do women. One reason is that many working wives
have smaller salaries
than their husbands, so there’s not as much to put
away. And for many women, especially those with children,
there are just more pressing priorities,
like the kids’ dental work or buying a home.
If you have family obligations, especially if you’re
the only breadwinner, you have to weigh your obligations
against your needs. Of course, you want to put
money away for your children’s education—but
you also need to plan for your own retirement.
Setting
priorities is a key element of financial success.
3.
Women live longer, so their money has to last longer.
Even though women, on average, live 5.5 years longer than
men, the average woman actually accumulates less money
for retirement than the average man. In addition,
• Women are less likely
than men to have pensions, according to the
Employee Benefits Research Institute. More women work
part-time or for service
and retail businesses that don't offer
such plans. Less than half of working women participate
in a pension plan.
• Women
earn less, so even if a woman puts
the same percentage of her salary away for retirement
as a male colleague, the dollar amount is lower.
• Women spend fewer
years in the workforce. Taking time out to have
children means fewer years to build up retirement funds
in a 401(k) or other plan. It also may mean
lower social security payments when she retires.
Tune in next month to learn how to bring your financial
savvy to par with our gentlemen peers. This is Part One
of a three-part series.
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 Lee
Alcorn offers securities through AXA Advisors,
LLC (member NASD, SIPC) and offers annuity and insurance products through
an insurance brokerage affiliate, AXA Network, LLC and its subsidiaries.
Alcorn is licensed to sell insurance in the following states: NC,FL; is
registered to offer securities in the following states: NC, FL and is
registered to offer investment advisory services in NC, FL.
AXA Advisors, LLC does
not provide legal or tax advice. Please consult your tax or legal advisor
regarding your individual situation. |
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