When it comes to money there are some big differences in how men and women perceive things to be concerned about. Most men tend to be “performance-based” and worry about not making enough on their investments. Women’s concerns are usually far more personal. Financial fears can paralyze anyone from making a decision about money matters, so doing what we can to put fears to rest is important. Let’s review some of the most common areas that concern women about their money and some suggestions on things you can do to lessen your fears.
1. The Fear of Being Taken Seriously
Women have come a long way in terms of independence and earning power over the last 50 years, but many women still see investing and money management services as an industry geared towards men. Many women don’t get involved in the financial planning process, instead leaving that work up to their spouse. This can leave women feeling intimidated and concerned about how financial professionals will treat them. The good news is that their fears are often unfounded, but women may feel more confident simply by learning more about finances and by working with a financial advisor who understands their situation. The relationship with the advisor is best formed as early as possible and the woman should be involved in discussions about their plan. The worst time to try to get a handle on your finances is after the death of a spouse or after a divorce.
2. The Fear of Running Out of Money
Both men and women are afraid of outliving retirement savings, but women find it a much more pressing concern for one simple reason: on average women tend to outlive men by as much as five years. This means women will require almost a fifth more in their retirement nest eggs than their spouses.
Putting a structured retirement income plan in place early in retirement can go a long way to building confidence that you will not run out of money during your lifetime. A qualified financial advisor can help put such a plan together and build in estimates for inflation, longevity, and also factor in income sources such as Social Security.
3. The Fear of Losing a Spouse
No one looks forward to a spouse passing away, but the death of a husband can have severe financial repercussions for many women. This is particularly true for women whose husband is the primary wage-earner in the family or handles the investment without involving the female spouse. A wife can ease her economic apprehension by getting more involved in money matters as soon as possible. The first step is finding out about all the family accounts and investments to make sure the wife will have full access in the event of her husband's death. It may also be a good idea to take out a life insurance policy for the husband. Some experts suggest having a minimum policy that can cover between 6 and 10 times what would be the lost annual earnings, plus enough money to pay off any outstanding debts.
4. The Fear of Losing a Home
It is hard for anyone to imagine losing their home as a result of mismanagement of finances, but it can happen. Owning your home mortgage-free is a great goal when you reach retirement. There are still expenses to owning a property like taxes, insurance and maintenance, but those are usually managable if there isn’t a mortgage payment. Older homeowners may want to think about downsizing to a home that will require less maintenance before it becomes an absolute necessity.
5. The Fear of Having to Pay for Your Kids Forever
There is no getting around the fact that having children is expensive but being a great mom shouldn't mean paying the kids' bills forever. Parents need to know that setting boundaries when it comes to providing financial support for adult children is healthy, and in the long run, the right choice for everyone.
Money is a complicated topic, and one of the best ways to ease fears associated with it is to talk with a professional financial advisor who can create a personal plan to help increase your confidence about your financial future.
Please call us at (941) 778-1900 or visit www.integracapitaladvisors.com to schedule an appointment with us today to get started on your personalized plan.