What do women want when it comes to their financial future?
Remember back in the early 90’s when the book “Men Are From Mars, Women Are From Venus” by John Gray was published and became a literary phenomenon, of sorts? The basic theory behind the book was that men and women communicate differently, think differently, have different emotions, and as the title of the book hints, are as unalike as beings from different planets. The good news was that, according to the book, by understanding how the members of the opposite sex were wired, it would be easier to communicate, appreciate, and enrich your relationship with them.
So what does this have to do with financial planning? According to research, those differences between men and women also show up in finances and planning for retirement.
Several studies that have been conducted over the years show that, in general, women tend to invest more conservatively then their counterparts and more often than not, are hesitant to take on an extreme amount of risk. (1) But really, why does this matter? Or maybe we should be asking if it really even matters because…as the book states, men and women are just different.
Consider this. Women typically live longer than men. Women are typically the ones that quit the workforce (sometimes temporarily, sometimes permanently) to take on the role as the primary caretaker of children or other family members, such as their parents. Research has also shown that some females’ salaries tend to hit their maximum level earlier than men – age 40 as compared to age 55 for men. (2) These factors make it so women are more often than not going to retire with less money and live longer, so they may want to take a realistic look at their investment strategy to make sure it’s allocated properly to help ensure they don’t run out of money in retirement.
At the end of the day, what do women want when it comes to their financial future? If you asked a room of 10 women, you may get 10 different answers and that’s not surprising. But this illustrates why it is so important to make sure that your retirement strategy addresses your wants and needs, regardless if you are married or single, your yearly income, your level of education, and whether or not you have children.
For more information, make sure to listen to America’s Wealth Management Show this Saturday at 11am on 98.1FM KMBZ where Dean Barber and Bud Kasper are joined by JoAnn Huber, Partner and CPA at Modern Wealth Management. They will be talking about women and how their investment quest isn’t necessarily about becoming rich, but more about achieving wealth-life balance.
As always, we’re here to help. If you have questions about your retirement or financial plan we are happy to address them and any other concern you might have. Our advisors are prepared to sit down with you and discuss anything you might have on your mind regarding your financial future at no cost or obligation. To schedule an appointment schedule a complimentary consultation or give us a call at 913-393-1000.
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The views expressed represent the opinion of Modern Wealth Management an SEC Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.