Why woman need to have a financial plan and be involved with it ongoing.

A woman is the full circle. Within her is the power to create, nurture and transform.

-Diane Maricchild

We all have important woman who are key parts of keeping our world in order. Mom, spouse/partner, sister, daughter, boss, key team member, doctor, lawyer… Woman make up the majority of key front-line workers during this pandemic. 88% of registered nurses, 85% home health care aides, 93% childcare workers. As we continue to live in these highly unusual times, I want to highlight key financial areas which more significantly impact women.

Why is it so important? Women outlive men on average by 5 years. 9 out of 10 women will be solely responsible for their finances at some point during their lives. So even if you are part of a couple, it is imperative that you participate in your household’s finances. 

In my next few post over the coming weeks, I will highlight one area that can significantly impact the financial plans for women.

Long term care planning-Both the care and insurance are costly. The data shows that the first person in a couple to require care typically receives it from their spouse/partner. Everything possible is done to provide the care at home. If home health care is used, it is expensive. This may involve spending down a large part of the couple’s assets and wear on the caregiver spouse both physically and emotionally. Studies show that the woman is more often than not, the surviving spouse. What will be left for her when she needs care? Have you run scenarios to understand the impact to her? Have you discussed ways to reduce the risk?  

Ladies, you need to put yourself first! Women tend to be nurturers and put their own needs last. You cannot do this with your financial plan. Everything is more expensive today, from general living to health care to education expenses. Ensure that you have your own goals funded before those of your children or other loved ones. Work with your financial advisor to run various scenarios and understand the outcomes for yourself before making commitments to help others.

If you are single, take the steps to solidify your financial plan so you know what next steps you need to take to secure your financial future. If you are in a relationship, do the same and ensure that your plans account for the likelihood that the female in the relationship will be the last one standing.