Your Money & Business
It's Your Money, Honey!
April 2020
By Carol Lippert Gray
Just as each woman is unique, so each woman’s monetary circumstances are unique. There are, however, several financial truisms that apply to vast percentages of women.
These include the fact that most, on average, earn 21% less than men (if you’re African American or Latina, make that 40% and 45%, respectively), according to a 2016 Senate Joint Economic Report.
Women spend fewer years working than do men. According to a 2015 study by the National Center on Caregiving, on average, women spend 12 more years outside the paid workforce, usually caring for children or aging relatives. Thus, women pay less into Social Security as well as their IRAs and 401Ks. Women live longer, so they spend more years in retirement than men and, therefore, need more resources to sustain themselves.
A recent UBS Global Wealth Management report says 58% of women leave big financial decisions to their male partners (women between 20 and 34 polled at 56%; women 51 and over polled at 54%). So a good number of women are likely to die single, divorced, or widowed, often having had little to no experience managing money and investments.
Cheerful, I know. And hardly empowering. But that’s why it’s critical for us to overcome either a bias against managing money (e.g. “It’s so unfeminine” or “My husband always took care of that”) or a fear of doing so (e.g. “I’m so bad with numbers” or “I have no head for that”).
Betsy Billard, CRPC, a private wealth advisor with Ameriprise Financial for almost 25 years, explains how to overcome both the stumbling blocks and mental blocks that keep women from being financially healthy and savvy. Women can create and secure a stable financial future by following her advice.
Be Cognizant
Billard says, you have to be “cognizant of what you need to live on and what your spend is. Women who understand that strive to make their retirement as comfortable as possible.”
If you’re planning for retirement, Billard advises, “Look at what’s viable. A lot of people are being aged out of the workplace. It’s harder if you’re let go at 65 to get a 401K and continue saving.” She also suggests, “Start as early as you can and be mindful of how you spend your money. Push to save a little more each year than you did the year before."
Be Vigilant
Billard points out that investing requires vigilance. “Don’t just set money aside and not look at it. People are generally guilty of investing money and not paying attention to it, not opening statements. So stay connected to your money. And if your eyes glaze over, hire [a financial advisor] to help.”
Don’t know how to go about this? Billard recommends, “Hire somebody you can partner with, you feel comfortable with, and who can help educate you.” If you’re older and dependent on your children, she says you all can work in concert with an advisor. If you’re younger and married, you should have your own accounts and your own credit card - with your spouse’s knowledge.
Being a financial advisor is like being a therapist, Billard explains. Therefore, finding the best fit “is a journey.” Together, you’ll suss out the details - “those things that drive your decisions about money (60%) and the money itself (40%)."
Be Objective
Be clinical, too. She warns, “Don’t fall in love with a stock. Don’t be so emotionally involved with it that it handcuffs you from making a decision [as to whether to buy, sell, or hold].”
Seek Assistance When Needed
“Websites can’t talk back to you and can’t help you formulate a plan,” Billard says.
These include the fact that most, on average, earn 21% less than men (if you’re African American or Latina, make that 40% and 45%, respectively), according to a 2016 Senate Joint Economic Report.
Women spend fewer years working than do men. According to a 2015 study by the National Center on Caregiving, on average, women spend 12 more years outside the paid workforce, usually caring for children or aging relatives. Thus, women pay less into Social Security as well as their IRAs and 401Ks. Women live longer, so they spend more years in retirement than men and, therefore, need more resources to sustain themselves.
A recent UBS Global Wealth Management report says 58% of women leave big financial decisions to their male partners (women between 20 and 34 polled at 56%; women 51 and over polled at 54%). So a good number of women are likely to die single, divorced, or widowed, often having had little to no experience managing money and investments.
Cheerful, I know. And hardly empowering. But that’s why it’s critical for us to overcome either a bias against managing money (e.g. “It’s so unfeminine” or “My husband always took care of that”) or a fear of doing so (e.g. “I’m so bad with numbers” or “I have no head for that”).
Betsy Billard, CRPC, a private wealth advisor with Ameriprise Financial for almost 25 years, explains how to overcome both the stumbling blocks and mental blocks that keep women from being financially healthy and savvy. Women can create and secure a stable financial future by following her advice.
Be Cognizant
Billard says, you have to be “cognizant of what you need to live on and what your spend is. Women who understand that strive to make their retirement as comfortable as possible.”
If you’re planning for retirement, Billard advises, “Look at what’s viable. A lot of people are being aged out of the workplace. It’s harder if you’re let go at 65 to get a 401K and continue saving.” She also suggests, “Start as early as you can and be mindful of how you spend your money. Push to save a little more each year than you did the year before."
Be Vigilant
Billard points out that investing requires vigilance. “Don’t just set money aside and not look at it. People are generally guilty of investing money and not paying attention to it, not opening statements. So stay connected to your money. And if your eyes glaze over, hire [a financial advisor] to help.”
Don’t know how to go about this? Billard recommends, “Hire somebody you can partner with, you feel comfortable with, and who can help educate you.” If you’re older and dependent on your children, she says you all can work in concert with an advisor. If you’re younger and married, you should have your own accounts and your own credit card - with your spouse’s knowledge.
Being a financial advisor is like being a therapist, Billard explains. Therefore, finding the best fit “is a journey.” Together, you’ll suss out the details - “those things that drive your decisions about money (60%) and the money itself (40%)."
Be Objective
Be clinical, too. She warns, “Don’t fall in love with a stock. Don’t be so emotionally involved with it that it handcuffs you from making a decision [as to whether to buy, sell, or hold].”
Seek Assistance When Needed
“Websites can’t talk back to you and can’t help you formulate a plan,” Billard says.
RESOURCES:
BOOKS:
Your Complete Guide to a Safe and Secure Retirement by Larry E. Swedrow and Kevin Grogan (Harriman House, 2019)
The Dumb Things Smart People Do With Their Money: 13 Ways to Right Your Financial Wrongs by Jill Schlesinger (Ballantine Books, 2019)
Working Longer by Alicia Munnell and Steven A. Sass (Brookings Institution Press, 2009)
ONLINE:
Saving for Retirement (IRS)
Top Ten Ways to Prepare for Retirement (US Department of Labor, 2019)
BOOKS:
Your Complete Guide to a Safe and Secure Retirement by Larry E. Swedrow and Kevin Grogan (Harriman House, 2019)
The Dumb Things Smart People Do With Their Money: 13 Ways to Right Your Financial Wrongs by Jill Schlesinger (Ballantine Books, 2019)
Working Longer by Alicia Munnell and Steven A. Sass (Brookings Institution Press, 2009)
ONLINE:
Saving for Retirement (IRS)
Top Ten Ways to Prepare for Retirement (US Department of Labor, 2019)
Carol Lippert Gray is an award-winning public relations professional and longtime freelance writer and editor. She has been published in fields as diverse as crafts and corporate finance, parenting and philanthropy. She is also a regular contributor for Sanctuary.
