For so many, the idea of reaching a certain age and retiring has become all but a dream. With the changing economic climate, family dynamics and personal goals, there is clearly no one-size-fits-all approach to managing money. When it comes to navigating financial matters, from the seemingly straightforward to the tricky ones, women should seek expert information and be willing to make prudent decisions that could save themselves and their loved ones money, time and heartache.
Three local financial experts shed light on the mysteries of saving, spending and growing one's money. They are: Annalee Leonard, investment advisor representative, president, CEO and founder of Mainstay Financial Group; and Kristan Brinkley CFP®, CLU, CHFC and financial advisor, and Sara Adams, financial representative, both of Northwestern Mutual.
GETTING CLUED IN
First, let's discuss the issues women often face.
According to Leonard, some women are "Making the wrong decision because they don't understand what they are doing and far too many are afraid to ask. Women have often been left out of the investing side of money. They often do the bills but won't get involved in the investment side."
RETIREMENT
Various factors impact, or dictate, when you may leave the workforce. For example, the performance of investments, the amount saved while working, a decline in health, the incurrence of medical debt, the death of a spouse and insufficient insurance benefits.
"While most women probably view living longer as a positive, longevity also presents a distinct set of challenges for women as they plan for their financial future," says Brinkley.
"Typically, we hear that female clients feel unsure about financial planning because they do not know what questions to ask or where to start. Most of the concerns we hear from women involve 'What if' questions around health and retirement: What if my spouse dies? What if I need long-term care? What if I have to take care of my parents? What if my partner or I couldn't go to work tomorrow due to a disability? What if I don't have enough money to retire? What if I outlive my money in retirement?" Adams says.
"We still have many women who never worked outside of the home so they as such retire when their spouse does. We have many women who are widowed or divorced later in life and all of a sudden find themselves in the workforce. Then, there are women, like me, who have always worked. We are finding a trend where there is a later retirement goal for many reasons — we are living longer so we need more for retirement. Those who came into the workforce later will work to an older age so they can 'catch up'," Leonard says.
