What All Women Should Know About Personal Finance

By Brett Gottlieb

Even though women make up 50% of the workforce these days,[1] they face financial challenges not often faced by men. Women typically earn 81 cents for every dollar earned by men[2] and women usually spend fewer years in the workplace because they may take time off work to raise children or to care for elderly parents. Additionally, women generally live about 6-8 years longer than men,[3] meaning women have fewer years to save a higher percentage of their income, so they can fund their longer retirement.

Doesn’t seem fair, right?

That’s why women need to be even more informed about their financial opportunities and how to maximize what they have. Gone are the days when husbands were the only ones in control of the family’s finances. Here are a few key principles all women should know about personal finance in order to succeed.

Stay On Top Of Your Spending

To reach your financial goals, you need to track your spending. Even if you have a high net worth, you may be surprised at how much more you could save if you cut unnecessary purchases. It could potentially equate to thousands more by the time you retire.

A recent study shows that only 23% of women make the primary decisions about their family’s day-to-day finances. That number drops down to 18% when it comes to making decisions about longer-term retirement and investment planning.[4]

If you’ve left budgeting up to your spouse or partner until now, set aside one night a week to go over the details and get on the same page. It could save you a lot of heartache and frustration down the road should something ever happen to your spouse or your relationship.

Find More Ways To Save

Once your budget is solid, start finding ways to save more money. There are typically two ways to do this: decrease spending or increase income. The most effective way is a combination of both.

Small everyday purchases add up to a large amount of money over time. Think about ways you can decrease spending without depriving yourself. Could you make your own coffee throughout the week instead of grabbing a cup on your way into the office? If you want to increase income, could you ask for a raise at your current job, rent out your spare bedroom, or start a side job?

Whatever you do, make sure you take advantage of your retirement plan. Whether it’s an employer-sponsored plan or a personal plan, contribute as much as you can—especially if you’re near retirement. You’ll thank yourself later.

Invest With Confidence

Investing can be a great way for women to close the gender pay gap and save extra money for retirement. Did you know women typically have a 0.4% higher return on investments than men?[5] It’s true. But women are also more likely to keep their money in a low-risk savings account than in investments because their earned dollars are more precious to them. Breaking this cycle and having a strong investment portfolio can get you one step closer to reaching your financial goals—and living your dream life in retirement.

Find A Trusted Partner

Given the right tools and education, women can succeed in reaching every financial goal they set for themselves. It may be overwhelming at first, but the more you know about investing, and the more you do it, the easier it becomes. A great way to gain momentum in reaching your financial goals is to seek help from a professional.

At Comprehensive Advisor, we can help you build a financial plan and investment portfolio that works for you. Want to learn more? Schedule an introductory appointment by contacting us at info@ComprehensiveAdvisor.com or (760) 813-2125.

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees in Business Administration and Economics. Brett is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

With a combined experience of over three decades in the financial services industry, our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial solutions for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a retirement road map to help ensure their assets are protected and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Comprehensive Advisor are not affiliated companies. C.A. Financial & Insurance Services, CA Ins. Lic. #6000262. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Neither the firm nor its representatives may give tax or legal advice. Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, lifetime income, etc. generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.  692154 – 8/20

[1] https://www.washingtonpost.com/business/2020/01/10/january-2020-jobs-report/

[2] https://www.payscale.com/data/gender-pay-gap

[3] https://www.who.int/gho/women_and_health/mortality/situation_trends_life_expectancy/en/

[4] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/pr/couples-fact-sheet.pdf

[5]https://www.reuters.com/article/us-money-investing-women/why-women-are-better-investors-study-idUSKBN18Y2D7

next-step-circle

Ready to take
The Next Step?


For more information about any of the products and services we provide, schedule a visit today or register to attend a live informational event.

 

Or give us a call at 760.813.2125