Women

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Life Transitions

If you're like most people, you probably don't take the time to routinely evaluate your life insurance needs. Why might that be a mistake? Well, your life insurance needs change as circumstances in your life change. That's why it's a good idea to re-examine your life insurance needs at least every few years and certainly when big changes, or life events, occur.

Just about any life event you can imagine will have an impact on your life insurance needs. An obvious example is having a child. As you bring a new person into the world, you also bring a major financial responsibility into your life. If something happens to you, where's the money going to come from to help provide the kind of upbringing you want your child to have?

This section will explore the major life events that might trigger the need to re-evaluate your life insurance coverage. Our Life Insurance Needs Calculator is a great resource for seeing how changes in your life, like having a child, taking on a bigger mortgage or getting a raise, might impact your life insurance needs. Once you have a general sense of your needs, you should consider giving us a call so we can assist you in conducting a more thorough analysis of your needs and help tailor a plan that meets your specific financial objectives.

Final Frontier

As women we have come a long way baby.

  • In the 1930’s we “got the vote”.
  • In the 1960’s we asserted ourselves as women.
    Many burned our bra’s, took stands for our sexuality, feminism, equal rights.
  • In the 1970’s we went to work in masses. Not just as teachers, or secretaries, or nurses (although thank you for those of you who continued in these noble professions), but we became managers, and pilots, and doctors, and lawyers, and we even broke through some of the glass ceilings to become CEO’s.
  • In the 1980’s we pushed for equal pay for equal work!
    We took great strides in that endeavor.
  • In the 1990’s we made a lot of money. We earned it, we started companies, and unfortunately most of us spent it.

We have worked hard to earn our independence. Those who came before us made great sacrifices that we may reap the benefits. Now it is our turn to “take action” to take a stand for what is next. The final frontier – Finances.

We define financial independence as woman who is secure in her knowledge of money. A woman who is responsible with her money. She lives within her means so she is not trapped by money. A woman who is financially independent has money that would allow her to leave a bad marriage, an abusive boyfriend, an intolerable job, or simply embark on a new adventure, like retirement. She knows how much it costs her to live on a monthly or yearly basis and she lives within their means. She has dignity money which means she has a retirement account she is contributing to on a regular basis so she knows she will be comfortable throughout her life. And last but not least she has money to give away. Money to support the causes and the organizations she is most passionate about.

  1. Only about 35% of single women are planning for retirement.
  2. To be eligible for social security on your own, you must have 10 years of covered earnings.
  3. Women need the same monthly income to live as men.
  4. Women traditionally earn less than men.
  5. Women are more likely to have broken work patterns or part time jobs than men.
  6. It's up to you to become financially literate.
  7. The US has the highest poverty rate of older women of all post-industrial nations.
  8. Older, married women are most at risk for poverty.
  9. Women tend to live longer than men and have lower lifetime earnings than men.
  10. Pensions received by women are usually worth less than those received by men.

What can you do?

First, you can start right now to save for your retirement.

If you work for a company that offers a pension plan or 401K, invest as much as you can afford. If you don't have any type of retirement at your place of employment, put aside money each payday and don't touch it.

Secondly, you can learn all you can about saving and investing.

The Internet is full of information that you can use to educate yourself. The more you know, the better prepared you are to take control of your retirement.

Moreover, try to control your spending.

Make sure you need something before you buy it and above all, don't go into debt deeper than you can afford to be. Learn to budget your money and control your spending.

Last, keep healthy.

One of the most important things for a happy retirement is good health.

10 Things To Know

"Only about 35% of single women are planning for retirement "

Did You Know?

$1 Per Day

While everyone should make long-term plans for retirement, women may want to pay special attention to when and how much they save for their later years. Because more than half the workforce is now female, retirement planning is no longer a male-only responsibility. In fact, 95% of all women in America will ultimately bear sole responsibility for their finances. Why? Women live longer than men. According to the Department of Labor, Bureau of Labor Statistics, US Census Data, women on average can expect to live 19 years in retirement while men can expect to live 15 years. Consequently, women end up needing to accumulate more income to carry them through their retirement years.

Although they may need more retirement income, women often start saving later and more cautiously than men do. A study done by the Investment Company Institute shows the average age of a first-time mutual fund buyer is 43 for men and 47 for women. Women also tend to be more "cautious" investors than men and often make more conservative investment choices. The end result is that many women are left with fewer resources to draw upon in retirement.

Take control with these simple steps:

  • Get started. The most important thing to do is to begin an investment program, regardless of how much you invest. Make savings a priority. Instead of buying a can of soda, save the money and you could be on your way to greater financial security.
  • Review your current portfolio. Are you well diversified in both stocks and bonds? Or are you overly invested in conservative options like fixed income funds?
  • Get educated. Read books, surf the internet, and talk to friends.

Just a Dollar a Day

Benefit of saving $1 per day, 365 days a year.*

$16,703

After 20 Years

$41,348

After 30 Years

*Assumptions: The investment yields 12% per year; figures are calculated to allow for an average 4% inflation rate per year.

This chart illustrates what setting even a small amount aside can do. If you added this amount on a monthly basis to your retirement savings account, along with your regular contribution to your retirement plan, you'd benefit from even greater compounding and tax deferral.

Seventy-two percent of adult women now work outside the home, versus 29% in 1955.

- U.S. Census Bureau

Female-headed families have increased 125% since 1960.

- U.S. Census Bureau, National Center for Health Statistics

Among the elderly poor, 75% are women; 80% were not poor before they were widowed.

- US Census Bureau, Business & Professional Women's Foundation

Eighty percent of retired women have no pension benefits.

- US Census Bureau, Business & Professional Women's Foundation

Nearly 50% of women claim to lack the time, money, and expertise necessary to successfully invest for retirement. They also significantly trail men in investments.

- Dreyfus/NCWRR study, 1998

Women often put off financial planning because they do not have thousands of dollars to invest. That's especially true of women making less than $25,000 a year— which accounts for 75% of the female work force.

- Southworth Advisory Corp.

Women's retirement benefits often are lower because women typically earn less than men over an entire career. The median income for full-time working women under 65 is $24,899; for men it is $33,321. For many homemakers, divorce or the death of a spouse leaves them financially strapped.

- Women's Institute for a Secure Retirement, WISER

While 80% of men die married, 80% of women die single. Older divorced women or widows without personal savings find their income drastically slashed by the loss of a spouse. Only 21% of women receive survivor income based on their husbands' pensions. The average elderly widow receives only 40% of the Social Security benefits of a married couple.

- Women's Institute for a Secure Retirement, WISER

The U.S. has the lowest savings rate of all industrialized nations; only half of those who work actually save. A Merrill Lynch study showed that only 26% of women were saving for their future, while 29% were saving for their children's education, 27% were buying cars or making home improvements, and 9% were saving for a vacation. The rest weren't saving for anything.

- Merrill Lynch

$9,910

After 15 Years

Email: info@womenbewise.com