facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
Unique Financial Challenges Women Face: How to Prepare Thumbnail

Unique Financial Challenges Women Face: How to Prepare

Women need to know the importance of financial planning. They undergo unique financial challenges due to different social-economic and demographic factors. These factors show that at some point, women have to be in charge of their finances. Factors include the decision to remain single, longer life expectancy, divorce, etc. Unfortunately, in most relationships, the male millennials and baby boomers handle most financial matters. Women should be proactive in being involved in the wealth management decisions.

Do you have a financial advisor? What are your plans for retirement? Do you have a trust or will? If not, it's crucial to come up with a good financial plan and investment portfolio.

If you have no clue how to go about all this, worry not. Here are some tips to help you build a successful wealth management plan.

Prepare Your Financial Goals

To plan your future, you should first set your financial goals. Consider both the professional and personal milestones that you want to achieve. It's best to come up with both short- and long-term objectives.

Evaluate yourself to determine what it means to be financially comfortable. Come up with realistic expectations that align with your goals. You will have an easy time creating an investment and savings strategy that will work through your life.

Take advantage of any financial wellness resources available at your workplace. They may include educational programming, coaching, or financial planning.

If you have a family, make sure you involve them in the planning too. Share with them your financial values as well as your fears. Everyone needs to understand the importance of saving and investing early.

Hire a Wealth Management Team

The first thing your financial advisor will ask you is, "have you figured out your financial goals?" Your response will determine his or her guidance to get started considering your future plans.

Hiring the right wealth management team is key to building wealth. The right team will help you divide the money for specific purposes into specific investments. They will access all the areas of your life and finances to give you professional advice. You will know the right percentage to assign to each account.

There are many financial advisors out there. Research online to identify one who matches your needs. A great resource is www.findyourindependentadvisor.com. Choose an advisor with experience in wealth management, not just a financial salesperson. They will give you sound financial advice to help you reach your goals.

Estate Planning

As a woman, you are likely concerned with the legacy you’ll eventually leave behind for your loved ones. Estate planning may not be part of your plans now depending on your age. But the best way to care for your children is to ensure your affairs are in order.

Estate planning is essential to minimize potential estate taxes and to pass your wealth to the next generation easily. Your financial advisor will create an estate plan that matches your legacy goals. Your advisor can then help you work with an attorney to create the necessary legal documents.  These will include a living trust, a will, and supporting documents. Your goal is to ensure that your intended beneficiaries get the assets you want when you're gone, with as little stress as possible.

Plan Your Retirement to Overcome Financial Challenges

Think about tomorrow. It's never too early to design a savings and retirement plan. On average, the life expectancy of women is higher than men. It's crucial to think about your retirement and how you will manage your lifestyle costs.

Get advice from your wealth advisor to come up with retirement options. Ensure you have enough money to live well after you retire. For that to happen, you need to make smart investment decisions.

Keep in mind that money can grow in value over time if properly invested. Do not focus on savings alone. Invest in generating more income and returns. There are many benefits of becoming a successful investor as long as you use the right methods.

Have a Healthcare Plan

It's important to prepare for the unexpected. An accident, illness, change in employment, or loss of a loved one can take a huge financial toll on you. It's best to come up with an emergency fund. It should cover essential living expenses for 3-6 months in case you're short of income. Include long-term healthcare in your wealth management portfolio.

Also, make sure to have your essential healthcare legal documents in place. These include medical directives and a medical power of attorney. Healthcare requires one to be ready for the worst-case scenario. Ensure your health insurance plan caters to all the essentials. Consider disability and life insurance policies as well.

Business Valuation

If you own a small business, you need to know how much it's worth. If at some point you decide to sell, you will be aware of the fair price. A financial advisor will let you know how much your investment is worth and how its value integrates with your retirement income plan. 

As you generate more value, your clients will be willing to pay a higher price for your product or service. Invest in the growth of your business. It is a great way to accumulate experience, have more capabilities, and stay updated.

Diversifying Your Portfolio

A diversified portfolio is one of the primary principles of investing. It means that you should spread your capital among different investments. Your wealth manager will help design the right allocation for you.

It's dangerous to rely on a single investment. Investing in different areas has many advantages. You may find that money is doing well in one part of your portfolio and not the other part.

Diversification reduces the risk of loss, preserves capital, and generates reasonable returns. Invest across various asset classes such as stocks, property, cash, or bonds and others to achieve diversification.

Overcome Financial Challenges with Top Financial Advisors

Prepare your financial future early on in life to overcome financial challenges. It's upon you to define your goals and come up with a game plan. With the help of a financial adviser, you will be in control of your finances.

Here, at Integra Capital Advisors, we focus on strategic wealth management. Our services are tailor-made to meet the needs of you and your loved ones. We are ready to help you with your investment and financial plans. Click here to learn more about Wealth Her Way, our hub for financial education and resources for women of all ages. 

Contact us today, and we will help you create a better and healthier future for you and your family.