Women and Wealth
On the face of it, money and financial planning seem universal, the same for men and women. But just beneath the surface are hard realities—longevity, employment inequities and more—so that realistically, men and women aren’t necessarily on equal footing when it comes to their finances.
For starters, women tend to live longer—about five years longer than men, according to the National Center for Health Statistics. A longer life requires more money, but women are often hampered by lingering wage disparities. To complicate matters, women tend to take more time away from their careers—about 15 percent of their work life compared to 1.6 percent for men—to care for children, grandchildren or aging relatives.
For scores of women, that all translates to less money to save for goals, such as their own retirement, and even reduces Social Security payments because of how benefits are calculated.
As if these realities aren’t dismal enough, the divorce rate in the U.S. now hovers between 40 and 50 percent for first marriages (higher for subsequent marriages), and the average age of widowhood in the U.S. is 56. In fact, nine out of 10 women will be totally responsible for their own finances at some point in their lives—because they never married, they married and divorced, or they married and were widowed, according to the National Center for Women and Retirement Research.
Steps to take control of your financial life:
- Build an emergency fund of your own sufficient to sustain you for six to 12 months.
- Avoid debt and increase your opportunities to build wealth.
- Develop a strong relationship with a banker, attorney, accountant and wealth advisor. When you need them, you’ll have advisers you know and trust.
- Educate yourself about financial planning, especially investments, so you can confidently make decisions for yourself.
- Manage risks with insurance coverage, such as life, disability and long-term care insurance.
- Actively participate with your spouse in financial planning activities. Speak up to ensure your current and future needs are considered.
- Review and understand your spouse’s estate plan so you know what your financial situation will be if he predeceases you. Make sure that joint assets are truly joint.
- Focus on saving money for your own retirement in an IRA, 401(k) plan or other retirement option.
Would you like to talk to a financial professional? Contact Evans at 713.388.1367 or evans.attwell@frostbank.com.
Evans Attwell
Senior Vice President
Frost Bank
Investment and insurance products are not FDIC insured, are not bank guaranteed, and may lose value. Investment and insurance products are offered through Frost Brokerage Services, Inc., Member FINRA/SIPC. Frost Brokerage Services, Inc. is a wholly owned subsidiary of Frost Bank. Additionally, insurance products are offered through Frost Insurance. Deposit and loan products are offered through Frost Bank, Member FDIC. Frost does not provide legal or tax advice. Please seek legal or tax advice from legal and/or tax professionals