Many women enter the job force after raising their children, typically earning less than equally educated male counterparts and statistically living longer than these same males. The amount of money women need to save for retirement is greater than males need, and it has to last longer.
Sadly, however, most women feel they need to take care of everyone else before they think about themselves. Many women don’t start thinking about their own financial security until their children leave home. We have met women in their early fifties who have only $2,000 saved for retirement. They are depending completely on either their spouse or Social Security for their retirement future. This procrastination in taking responsibility is financial suicide.
Read these ten tips for taking more financial responsibility:
Think ahead ten years. Set up a specific plan to give yourself a focus on which to strive. What do you want your life to look like? How do you want to make a difference at home and in the community? What do you want to accomplish during your lifetime? How do you want to make the world a better place?
Control impulse spending and emotional money decisions. Future wealth or poverty is determined by today’s actions. Income is what you spend; wealth is what you invest. How will your decisions impact your family and loved ones?
Each payday, commit retirement investments from your paycheck before daily living expenses. Expenses will diminish to fit the remaining accessible monies.
Be engaged in your household finances. Eliminate life insurance if there’s no need. Instead, save $10,000 in a growth mutual fund to provide burial expenses.
What are your financial concerns? Do you understand how inflation can be your enemy? Investments must generate a total return beyond inflation and taxes; otherwise, you are going backward.
Over the years, compound interest could make more money than you can make. Knowledge is useless unless there’s action. Start saving and investing immediately.
Playing the lottery or gambling is not sound retirement planning. Unrealistic expectations and get-rich-quick schemes don’t work. Invest each payday in a globally diversified equity fund and be patient. Money is just a tool, and time is your best friend in accomplishing your goals!
Keep your investments globally diversified, no matter what the market does. Each year a different investment class does better than the rest. Prudent global diversification gives you 91% of your returns, and lowers your investment risks.
Understand the tax laws and use them to your advantage. Or, get a friendly and knowledgeable tax advisor. Learn from others and avoid the common investment and tax mistakes.
Work with a Wealth Coach, who will guide you through all of your life stages. Investors who invest on their own typically lose money due to poor decisions and emotions. Your Wealth Coach will help you discover your life’s passion and help you reach your goals, so you won’t have any regrets. Your coach will teach you how to invest according to your risk tolerance, educate you, and help you stay disciplined.
Written by: Maria J. Wordhouse Kuitula and Phyllis J. Veltman Wordhouse, free market wealth and stewardship coaches, co-authored the book Stress-Free Investing, available at Amazon.com. Maria is the president of Wordhouse Wealth Coaching and may be reached at 616-460-6518 or [email protected]. For QUESTION LISTS and INVESTOR EDUCATION VIDEOS, go to www.WordhouseWealthCoaching.com. © Wordhouse Kuitula 2013. Photo: stock.xchng