As a woman, you might find yourself so committed to those you care about, your career, business, or other life obligations, that it could be tough to carve out time to address what’s best for you. Yet when it comes to retirement planning, it’s vital that you make yourself the priority. SageVest Wealth Management discusses the most common reasons women delay financial preparations for their retirement, and offers advice on how to overcome these concerns.
1) “I’m too busy”
Don’t let today’s busy lifestyle sidetrack you from tomorrow’s opportunities. Stay focused on your end goal – a comfortable retirement.
Start Saving Now
It’s never too late to start saving for retirement. The sooner you start, the longer your investments have to grow. Conversely, the longer you defer, the more you need to save.
Employer-Sponsored Retirement Plans
Contributions to your employer’s retirement savings plan will be automatically deducted directly from your paycheck, making it easy to save. Many employers also match a portion of what you contribute, offering an immediate return on your investment.
Balancing Work And Home
If you’re struggling to maintain the family-work dynamic, consider your retirement savings before quitting your job. Your retirement benefits might be based on your earnings and years of service, so the longer you stay with one employer, the higher those could be. In addition, make sure that you’re fully vested in (i.e., own) your retirement benefits before quitting work.
2) “I Don’t Know Enough About Investing”
You have a unique perspective on life and finances, including your comfort level when it comes to investments. Build a retirement plan founded on thoughtful planning and a well-tailored investment strategy.
Choose A Trusted Advisor
Work with a financial professional who understands what’s important to you. This can inspire the confidence you seek. SageVest Wealth Management offers a personalized and collaborative approach that encourages you to take an active role in your financial decision-making.
Women May Be Better At Investing
Despite traditional stereotypes, research suggests that women outperform men when it comes to investing.
Detailed Information About Funds
Many employer-sponsored plans offer a choice of investment options (typically mutual funds). Information about a fund’s objectives, expenses, risks, and past returns* is readily available in its prospectus.
3) “I Need To Support My Kids Through College First”
Many well-intentioned parents put their own retirement savings on hold to prioritize their children’s college education. Make sure to balance your goals for your future and theirs.
College Funding Options
Your children have a range of options when it comes to college financing, including loans, grants, scholarships, and part-time work. Unfortunately, there’s no such thing as a retirement loan.
Set A Good Financial Example
Be a responsible role model by focusing on your own finances first. This not only secures your own financial future, but it can also inspire healthy money habits in your children.
4) “My Partner Takes Care Of Our Finances”
It’s important to maintain an active role in financial decision-making, even if your partner is primarily responsible for managing household expenses. The choices you make must support joint goals, but also align with your individual financial objectives, including your retirement plans.
Distinct Retirement Challenges
As a woman, you face different complexities in retirement planning compared to male counterparts. On average, women earn less and live longer, resulting in lower Social Security benefits, retirement and pension plan balances. Careful planning can help you stretch your retirement dollars.
Focus On Saving
Even if you stay home to raise your family, you should continue to save for retirement. Set a realistic goal and save regularly as part of your household budget. Commit to directing a portion of every raise, bonus, cash gift, tax refund, or other windfall towards your retirement savings as well.
Traditional And Roth IRAs
Explore your options to contribute a traditional or a Roth IRA to further maximize your retirement savings. If you’re married and not working, but filing a joint tax return, you may be able to open and contribute to an account if your spouse has enough earned income to cover your contributions.
5) “My Life Circumstances May Change”
Retirement plans should always be dynamic enough to adapt to your evolving lifestyle. That’s why SageVest Wealth Management models various ‘what-if’ scenarios when helping you to plan for a financially fulfilling retirement.
Well-thought-out choices are less costly than those made quickly during a time of crisis. Plan for a retirement that lasts 20-30 years and give consideration to factors such as your health, your retirement location, and the likelihood that at least some of your retirement years could be spent as a single woman.
Estimate Your Retirement Needs
Use current expenses as a starting point to evaluate how much you might need for retirement (although your expenses may go up or down). Find out how much money you might receive from Social Security, pension plans, and other sources, and which benefits you’ll still receive should you become widowed or divorced.
Insurance For The Future
Long-term care insurance can play a vital role in your retirement planning, by helping to protect you and your family from possible expenses and ensuring your choices for care.
It’s time to stop putting off your retirement planning. Contact us now to find out how our dedicated team of advisors can help you to leverage your wealth and enjoy the retirement that you deserve.
* Past performance does not necessarily predict future results.