BY: Kathy Lee Hatchett, CFP® CEP® CAP®.
Vice President, Relationship Manager
Argent Trust Oklahoma
“It was a heart attack. He was 53…with no history of heart trouble.”
She paused and took a deep breath. “You’re just in such shock. Everything’s one big blur. I honestly didn’t know how I was going to make it through each day.
“I remember staring at the filing cabinet in his home office one morning and thinking I don’t know what we have or don’t have. I really had no clue. I was shaking when I started digging through those disorganized file drawers. Eventually—it took a while—I found some documents and information about retirement accounts, those types of things. But, even then, I didn’t understand most of it.”
I wish client stories like this were the exception. Sadly, they’re all too common. For me, this woman’s story is a sober reminder of why it’s so critical for women to be prepared—financially and practically—for the unexpected.
The financial realities of women
Despite progress in many areas over the last five decades…
- Women work fewer years than men—due to child-rearing and caring for aging parents, but especially due to spousal caregiving.[1]
- Women still earn less than men.[2]
- Women save less than men.[3]
- Women receive less Social Security than men (about 80% of what men receive)[4]
- Women report less financial confidence than men.[5]
When we add these realities to the fact that women live longer than men[6]—and therefore need more financial resources—it illustrates the necessity for every woman to proactively plan for her financial future. But what specifically can you—and should you—be doing?
Three smart financial moves for women
1| Start saving. Again, compared to men, women are less ready for future financial realities. That’s why it’s so important that you start saving ASAP.
If you’re eligible, set up a Roth IRA account. Even if you can’t fully fund it each year, every contribution makes a difference. If you’re not eligible to contribute to a Roth IRA, set up a regular investment account or a traditional IRA to begin growing your resources.
If your employer has a retirement plan, enroll. Direct a percentage of each paycheck to that plan. If your company offers to match your contributions up to a certain limit, try to get the maximum match.
2| Find a competent financial advisor you trust. Besides experience in comprehensive planning, you want a planner who takes the time to understand your unique situation and goals. Look for one with the mindset that “there are no dumb questions when it comes to your money and your” Good advisors make you feel empowered—and make sure you have a clear understanding of their process and the products they’re recommending.
Find that advisor and stay informed. And remember, there are no stupid questions. We are talking about your future security and peace of mind.
3| Create a “Notebook of Love.” My husband and I are like most marriages. We divide up the duties it takes to run a household.
Because I handle the finances, I created a notebook with all our important financial information in it—account numbers, policies, documents, and passwords. I call this our “notebook of love.” If something happens to me, my husband knows everything is in that notebook. When he’s reeling from grief, he doesn’t need financial stress too.
A financial repository like this is a practical way to show love to your family in the event of an emergency.
Whether married or single, taking steps to protect your financial future is a loving act towards yourself and for your loved ones.
If you need help getting started, give us a call. Argent specializes in helping women take those vital steps.
[1] https://www.nirsonline.org/reports/stillshortchanged/
[2] https://www.brookings.edu/articles/how-does-gender-equality-affect-women-in-retirement/
[3] https://www.newyorklife.com/newsroom/2023/wealth-watch-2023-hope-despite-inflation-recession
[4] https://www.brookings.edu/articles/how-does-gender-equality-affect-women-in-retirement/
[5] https://www.cnbc.com/video/2024/03/05/financial-health-of-women-in-2024.html and https://www.cnbc.com/2022/06/08/women-are-closing-the-confidence-gap-with-men-when-it-comes-to-money.html
[6] https://www.forbes.com/sites/josephcoughlin/2023/03/30/as-women-live-longer-they-should-also-plan-for-a-second-retirement/?sh=412da09a7a65
