Financial planning for women is a unique challenge. Women face unique financial challenges — living longer than men, taking time out of the workplace to care for children and/or aging parents, having lower Social Security income checks from earning less, etc. All these factors can throw a wrench into a woman’s ability to reach their financial goals.
Financial Planning for Married Women
Even if you’ve been earning your own money while married, marriage means combining every aspect of your lives together, including your finances. Your financial future is tied to your spouse’s financial future, which requires developing a financial plan that includes both of you.
That’s why, when working with married clients, our financial life advisors work with both spouses to determine each of their financial assets and goals. We consider things like whether the primary breadwinner has a life insurance plan, a retirement fund, and/or pension plan; and if so, whether their spouse is included in those plans. It’s best to lay out a financial plan that details how a surviving spouse will be provided for, and to be aware that women are more likely to outlive their husband.
Financial Planning for Single Women
Whether you’re divorced, widowed, or never married, you need your own approach to financial planning as a single woman. Envision Wealth Planning starts by considering all your assets. Assets can include earned income, inheritance, potential spousal support if you’re divorced. It can also include life insurance and/or pension plans if you’ve been widowed. These can all be used to estimate how much you can expect to receive in retirement, including Social Security benefits.
Since exiting the workforce for a significant amount of time lowers the amount of Social Security you can expect to claim, women are more likely to be financially vulnerable in retirement. Regardless of your marital or employment status, our job is to help you attain financial independence that allows you to retire securely.
We also look at your expenses, including childcare if applicable, to determine how much you’ll need in retirement. Once we know where you are and where you need to be, we can formulate a plan to help you get to a state of financial stability.
Financial Planning for Divorced Women
Dissolving a marriage can be a stressful and challenging process. Dividing your assets can increase that stress level. Understanding what you are entitled to financially gives you a better picture of your financial plan after the divorce.
A Certified Divorce Financial Analyst will guide you through the financial resources you may be entitled to. This can include: Spousal Support, Child Support, Pension Plans, Retirement Accounts, and Social Security. James Brewer and Envision Wealth Planning help divorced women navigate through various financial planning, retirement planning, and money management issues and goals.
Financial Planning for Widowed Women
A 2019 UBS Investor Watch Survey found nearly 68 percent of women married to men believe they’ll outlive their husbands. According to U.S. Census data, women are expected to live longer than men by about four years by 2060. These numbers point to a growing need to provide financial guidance to recent widows.
Widows often find themselves in a sticky situation, especially if their spouse always handled the finances. In the event of a sudden death, the surviving spouse may not even know how much money she has. Much less know how to manage it. We seek help to save money by showing her how to avoid costly mistakes.
We will cover estate planning, emergency savings, and health care plans. In addition, we can explore advanced planning strategies to ensure protection against a loss of income. For example, a widowed woman can consider disability insurance to provide necessary income replacement protection. She can also buy life insurance to protect the needs of any children or other dependents after her own death.
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