Retirement Planning for Women is Different
- Women are managing more money (household and business finances) than ever before.
- Women face a significant retirement funding gap because of lower average lifetime earnings than men and longer life expectancies.
- Women sometimes feel insecure about their ability to make wise financial decisions.
- Women are even more pressed for time than most men because they juggle work and family.
- Women typically don’t receive the the kind of advice to help them address their unique financial situations.
Money and Power and Women
- About half the women I know think of themselves as as the CFO (chief financial officer) of their household.
- About 40% of married women I know are the primary breadwinner of the family (more today than 10 years ago).
- About 50% of the women I know have a “great deal of responsibility” or they “do it all” when it comes to managing the money.
Why Women Take Control
- Women believe they can do a better job managing money.
- Women who have access to a competent financial planner do even better.
- Women and men struggle with retirement, together is better than alone.
- Women face more obstacles than men for many reasons.
- Women’s average earnings are still about 20% below men.
- Women’s lower lifetime earnings mean less Social Security benefits.
- Women have smaller retirement accounts for obvious reasons.
- Women take off more time for caregiving which means…
- Women have almost half the income in retirement than men.
Women Become Widows Sooner
- Women start out with less retirement savings.
- Women have to make their savings last longer.
- Women have longer life expectancies and often spend their final years alone after becoming the first widow of the family.
In the last year, we lost three wonderful men in our family. That left three wonderful women who are now widows – including my mom.
Gap Analysis: Retirement Planning for Women
- 55% of Women expect a comfortable retirement.
- 68% of Men expect a comfortable retirement.
- These statistics have been published in multiple sources but when it comes to expectations, statistics don’t matter. Planning matters more.
Wall Street delivers an outdated service model for women because the big banks and the overall financial services industry was designed by men for men. Mostly white men, over 50. Men like me. I worked on Wall Street at Morgan Stanley before becoming an Independent Investment Advisor.
Factoids: Retirement Planning for Women
- Women have Longer lifespans than men.
- Women typically make less money than men.
- Women have lower savings which require smarter strategies to make ends meet in retirement.
Bad Retirement Planning for Women
Let’s Blame Wall Street
Recently, the Family Wealth Advisors Council published “What Do Breadwinner Women Want?” and it points out the obvious: the financial services industry has not evolved to meet the needs and desires of this new generation of women.
Working women who participated in the breadwinner study said that they prefer a financial adviser who coordinates services with other professionals:
Certified Financial Planner™ professionals, CPAs, accountants, estate planning attorneys, elder care specialists, and insurance agents working together to serve clients always deliver Smarter Strategies and Better Results.
Independent Planning Advice
Women expect Financial Advisors to be able to explain employer benefits, medicare, life insurance, estate planning and charitable-giving strategies – not to mention investment planning. Many (most?) male advisers want to talk only about investment management – because most Financial Advisors get paid for managing investments (they don’t get paid for financial planning).
Most women breadwinners are happy to consider changing their financial adviser when they feel like nobody is listening. Or, because their Financial Advisor never really asked What Matters Most – to you?
Clarity, Confidence, and Contentment
At BayRock, we feel very strongly that when women gain more clarity about how their financial decisions impact their family and their own future, they make wise financial choices.
Confidence increases when you have a Blueprint that helps you see the Big Picture more clearly.
With more clarity and confidence – and a Blueprint – its pretty easy to increase your level of contentment. I’m sure there are many studies to prove that, but I’m even more confident that, like any self-evident truth, it’s already pretty clear to you.
Independent Investment Advice
I’ve met a few people who have plenty of assets: mutual funds for growth, annuities to provide future income and maybe even a life insurance policy with a long-term care rider. Most clients come to me with a lot of investments spread out among many Financial Advisors, but what they really need is a better plan. Investments are important but more important is to coordinate your overall financial plan – including your investments. The BayRock Blueprint puts it all together so that you see more clearly how each step moves you closer to What Matters Most – to you.
Customized Retirement Blueprint
BayRock creates a customized Blueprint that addresses your investments, annuities, tax planning, health care, and our “Gap Analysis” includes a careful review of your estate planning goals as well as the legal documents needed to achieve those goals (Will, Trust, etc.). We always work with your Financial Advisory team and we make referrals as needed (attorneys, accountants, insurance agents).
BayRock builds your retirement blueprint over a three-meeting process. You’ll see clearly where your money is coming from and how long it’s likely to last.
If your investment assets fall short, a BayRock CFP® Professional will discuss alternatives such as working longer, delaying Social Security benefits, downsizing from your big home to something less expensive or possibly considering a reverse mortgage.
BayRock is dedicated to transforming the way women are treated in the wealth management business.
- Most women don’t care nearly as much about investment returns, as they do about simplicity and stability.
- Women want safety, protection and predictability.
- Money is just a means to an end.
- We start with What Matters Most and then
- We build a Retirement Blueprint to help you Make Your Money Count.
BayRock typically meets with prospective clients three or four times to learn about you, your family, and your goals. We want to know What Matters Most to you – before we start discussing your finances and creating a comprehensive Blueprint to address your needs, wants, and wishes.
What Matters Most
- Most men want to talk about investment returns and how to beat the S&P 500 index.
- The person who wrote this blog is a man.
- I’m Jim Munchbach, a man. Its true.
- Women want to talk about the quality of life and the awesome experiences they can create.
- My wife likes talking about helping our children buy their first home and go on camping trips with our grandchildren.
My investment discussions tend to be very short with my wife.
The Perfect Investment
I teach personal finance at the Bauer College of Business at University of Houston and one lesson that I repeat multiple times each semester is The Perfect Investment. It’s the super simple idea of investing in your company 401k plan in order to get the company match. I’ve always been surprised by how many people don’t do that. Lately, I’ve been a little surprised by hoe many companies don’t offer it. At BayRock, we’re working to change that one company at a time.
- Women in business realize that improving their financial security begins at work.
- Business owners and plan sponsors can make a significant difference in retirement outcomes by improving plan design and providing holistic financial education for employees.
- Its good for you as a business owner.
- Its good for your employees, too.
Whether you’re a business owner, an executive officer, or a plant worker, BayRock has designed a package to fit your needs and your budget.
If you’re ready to build a retirement blueprint, give us a call or click on the link below to book a quick call with a BayRock CFP® Professional Today.
