Women and Financial Strategies

Forty-four percent of American women are the primary breadwinner in their house.1 Yet only 10% of women feel very confident in their ability to fully retire with a comfortable lifestyle.2

Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance.

Women and College

The reason behind this disparity doesn't seem to be a lack of education or independence. Today, women are more likely to go to college and graduate than men.3 So what keeps them from taking charge of their long-term financial picture?

One reason may be a lack of confidence. In one recent study, less than half of the more than 2,000 women surveyed said they felt satisfied with their knowledge of finances.4 Women may shy away from discussing money because they don’t want to appear uneducated or naive and hesitate to ask questions as a result.

Insider language

Since Wall Street traditionally has been a male-dominated field, women whose expertise lies in other areas may feel uneasy amidst complex calculations and long-term financial projections. Just the jargon of personal finance can be intimidating: 401(k), 403(b), fixed, variable.5 To someone inexperienced in the field of personal finance, it may seem like an entirely different language.

But women need to keep one eye looking toward retirement since they may live longer and could potentially face higher health-care expenses than men.

If you have left your long-term financial strategy to chance, now is the time to pick up the reins and retake control. Consider talking with a financial professional about your goals and ambitions for retirement. Don’t be afraid to ask for clarification if the conversation turns to something unfamiliar. No one was born knowing the ins-and-outs of compound interest, but it’s important to understand in order to make informed decisions.

Compound Interest: What’s the Hype?

Compound interest may be one of the greatest secrets of smart investing. And time is the key to making the most of it. If you invested $250,000 in an account earning 6%, at the end of 20 years your account would be worth $801,784. However, if you waited 10 years, then started your investment program, you would end up with only $447,712.

Compound Interest Chart With Alarm Clock

This is a hypothetical example used for illustrative purposes only. It does not represent any specific investment or combination of investments.

  1. CNBC.com, January 19, 2017
  2. TransAmericaCenter.org, 2017
  3. The Atlantic, August 8, 2017
  4. Time.com, February 12, 2018
  5. Distributions from 401(k), 403(b), and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70½, you must begin taking required minimum distributions.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2019 FMG Suite.

Share |
 

Related Content

Social Security: By the Numbers

Social Security: By the Numbers

Here are five facts about Social Security that might surprise you.

The History of Retirement

The History of Retirement

Do you know where the idea of “retirement” comes from?

Investment Strategies for Retirement

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

Contact

Parkersburg Office
225 College Parkway
Suite 101
Parkersburg, WV 26104

Phone: (304) 422-3531
Fax: (304) 428-6222
Toll Free: (800) 422-4644

Wheeling Office
21 Warden Run Road
Suite 201
Wheeling, WV 26003

Phone: (304) 230-2384
Fax: (304) 230-2385
Toll Free: (866) 266-5955

Email Our Team

Securities offered through Securities America, Inc. Member FINRA/SIPC. Advisory services offered through Arbor Point Advisors, LLC. Commonwealth Financial Services, Securities America Inc., and Arbor Point Advisors LLC are separate entities.

This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed.

Disclosures