Women are the New CFO's of the House

Women are the New CFO's of the House

August 01, 2019

 

What gender controls 2/3 of purchasing decisions, tends to live 5-8 years longer, and often needs to be concerned about their retirement and legacy planning after their spouse passes? Women.

Women control $14 trillion in U.S. Wealth and are in a position to inherit $25 trillion by 2030* 80% of women are solely responsible for their finances at some point in their lives. ^ Therefore there are several areas to consider. The five below are not all-inclusive, but they are conversation starters.

  • Estate Planning (Wills, Powers of Attorney, Trust) – Yes you might have one, but then was it last updated? Who was in the White House at that time? (that’s a joke) Have you updated your beneficiaries now that your kids are older and someone died recently, or there was a divorce?

  • Understand investment risk. Women tend to make better long-term investors than men. Men tend to take more risks due to overconfidence. However, women’s reluctance to take adequate risk in their portfolios cause it to not grow as fast as inflation over time.

  • Understand your debt. There are differing views toward debt. Some clients want everything paid off entering retirement, but others look at debt as leverage. There are risks and trade-offs to both good debt (mortgage) and bad debt (credit cards.)

  • Understand your budget. Know the difference between what you earn and what you spend and the impact your credit card balances have on your disposable income.

  • Get help understanding your taxes. It shouldn’t drive your financial planning, but having a general understanding of your liability can be particularly important.


Yes, I know there are many other areas. The above are just conversation starters. If you have questions or would like to know more you can contact us at (864)-520-5061 or Frederick.shows@GoodLifeFA.com

*Investment News, “10 Essential Financial Facts about Women,” 2012

^The American College of Financial Services, 2012.

We do not offer legal or tax services, but can assist with providing a referral.

Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Good Life Advisors, LLC, a registered investment advisor. Good Life Financial Advisors, and Good Life Advisors, LLC are separate entities from LPL Financial.