With women living, on average, four years longer than men [1], involving them in the financial planning process is no longer a luxury; it’s a necessity. At Prime Capital Investment Advisors, we’re passionate about working with women and ensuring that they don’t take a backseat in retirement saving.
Over the next two generations, women will inherit an astounding 70% of the money in this country [2]. Still, a high percentage of women don’t feel financially secure, putting us on the cusp of a great divide between financial power and financial decision making. Here’s what PCIA proposes: If women are expected to hold the majority of the financial power in the country, they should be front and center when it comes to financial education and strategizing.
If you’re worried about the potential of being monetarily crippled in the event of emergency or tragedy, here are some things to look out for:
- Overreliance on your observational skills
A lot of times our behaviors are determined by decisions we’ve watched our loved ones make. Whether your parents struggled with debt, saved religiously or invested aggressively, you may be following in their footsteps, falling back on the only practices you know. Your observational skills are vital, but new information can be key to growth. Education and applied abilities can make you more confident and assertive when it comes to money.
- Setting it and forgetting it
A recent study showed that women have higher participation rates in employer-sponsored retirement plans than men, but only 43% built an emergency fund. Even fewer regularly rebalance their investment portfolios [2]. Staying on top of your portfolios and accounts can be a great way to improve and maintain financial literacy.
- Acquisition of financial knowledge
Knowledge is the best way to shatter money myths and convert them into money truths. One of the best ways to acquire financial knowledge is by speaking with your financial advisor, specifically one who recognizes common mistakes made by female investors.
For more on financial security and women, you can read the entire blog post from Prime Capital Investment Advisors by clicking here.
