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Savvy Investments Matters for Her

Go to:Go to Manage My Finances Go to Secure My Retirement

Take Control of Your Finances
Studies have shown that there are several common challenges women face when it comes to achieving financial security. Understanding and proactively working with a financial professional to help overcome these challenges can go a long way.

Put Your Needs Before Others
Whether it's due to temporarily leaving the workforce to raise a family or to care for an elderly loved one, many women are financially penalized for putting the needs of others before their own. Women are more likely to cut back on hours of employment to meet family needs, and these work interruptions can have significant financial consequences. For instance, women's contributions to Social Security cease when they are unemployed, ultimately reducing their Social Security benefit when they retire. According to the Social Security Administration1, in December 2008, the average monthly Social Security income received by women was $962, compared to $1,274 for men. Remember, focus on taking care of yourself first and make saving a priority. Develop an investment strategy and stick with it. Consider investing more to make up for lost time and try and save even a little if you are not working.

Save for Your Retirement
Everyone needs to address the reality of living longer (and spending more years in retirement), but females, on average, live longer than their male counterparts. This makes it even more crucial for women to make saving for retirement a high priority, and to make sure that they have enough money to last their entire lives. The statistics speak for themselves. According to the October 2008 Center of American Progress Report, elderly women (over 75 years old) are far more likely to be poor than elderly men (13% of women vs. 6% of men).2 This is why it's important to start planning for the future today. Your ability to increase your retirement savings can be substantially enhanced by putting aside money for retirement now, rather than later, to reap the benefits of compounding.

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What Is Your Life Stage?
In addition to the common challenges facing women, there are other issues a woman may face based on her particular life stage. Below is a summary of various life stages, the associated challenges, and some of the opportunities that are available to overcome those challenges.

Life Stage
Snapshot
Challenges
Opportunities
Single working woman "I work, have no partner or children, and manage my own household."
  • Planning for the unexpected.
  • Managing debt.
  • Saving for major financial goals.
  • Saving for a secure retirement.
  • Develop a budget and an "emergency fund."
  • Work with a financial professional to consolidate your debt and develop a financial strategy.
  • Establish an automatic investment plan to save for your major goals.
  • Enroll in your company’s retirement plan and maximize your plan contributions.
Single parent "I work, have no spouse, have one or more children, and manage my own household."
  • Planning for the unexpected.
  • Saving for a child's education.
  • Saving for major financial goals.
  • Saving for a secure retirement.
  • Develop a budget and an "emergency fund."
  • Purchase life insurance.
  • Contribute to a college funding plan.
  • Establish an automatic investment plan to save for your major goals.
  • Enroll in your company's retirement plan and maximize your plan contributions.
Managing my family "I have a partner or spouse and am expecting or already have one or more children."
  • Protecting your family.
  • Saving for a child's education.
  • Saving for retirement.
  • Assisting aging parents.
  • Purchase life insurance.
  • Contribute to a college funding plan.
  • If you are working, enroll in your company's retirement plan and maximize your plan contributions.
  • Consider long-term care insurance for your loved ones.
Nearing retirement "I am actively preparing for my retirement, which is roughly 10 or fewer years away."
  • Feeling the strains of the "sandwich generation" (funding child's education/assisting aging parents).
  • Having enough money for retirement.
  • Develop a strategy that accounts for multiple financial responsibilities.
  • Analyze your current financial situation and periodically adjust your investment portfolio accordingly.
  • Consider long-term care insurance for yourself and loved ones.
Living in retirement "I have retired or am about to, or I am semi-retired."
  • Potentially spending too much in retirement.
  • Needing to continue working after "retirement."
  • Being prepared for unexpected expenses.
  • Envision your retirement and prioritize your personal goals.
  • Develop a financial strategy so you don’t outlive your savings.
  • Review your investment portfolio regularly and rebalance it when necessary.
  • Develop a plan to meet unexpected medical and other emergencies.
Recently divorced or widowed "I have recently begun to handle my own finances after sharing the responsibility with someone else or leaving it mostly up to that other person."
  • Knowing where all your assets and important documents are kept.
  • Meeting the expenses associated with major financial goals (your child's education, your retirement, etc.).
  • Get your financial house in order by creating a file containing all of your important personal and financial documents
  • Work with a financial professional to analyze your current financial situation and develop an appropriate plan to help meet multiple financial goals.
  • If you’re working, enroll in your company's retirement plan and maximize your plan contributions.
  • If applicable, consider a college funding plan, an automatic investment plan for major goals, life/long-term care insurance.

Securities offered through properly licensed registered representatives of NYLIFE Securities LLC (Member FINRA/SIPC) A licensed insurance agency, 51 Madison Avenue, New York, NY 10010

1Fast Facts & Figures About Social Security, Social Security Administration, July 2009.

2Straight Facts on Women in Poverty, Center for American Progress, October 2008.


Go to:Go to Manage My Finances Go to Secure My Retirement

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