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When it comes to personal finances, some statistics surrounding women and their financial futures can be shocking. For example, the National Center for Women and Retirement Research reports that 75 percent of women are widowed at an average age of 56, and 25 percent of those women are financially broke within two months of being widowed. Further, they report that only 41 percent of women participate in the 401(k) plan offered by their employer, and 87 percent of elderly Americans in poverty are women.
“Women are often involved in paying the bills and balancing the check book, but it’s scary how many women let the man take the driver’s seat when it comes to investing and planning for the future,” explains Samantha Fraelich, Certified Financial Planner and Vice President of Bernard R. Wolfe & Associates, Inc., a company specializing in offering wealth management strategies. “Life throws us curve balls and we need to be prepared to take action if the worst happens. Otherwise, in the middle of what can be an emotional or upsetting time, we become frozen in fear. We’re unsure what our next step should be, and wondering who we can trust to help us move forward.”
Here are five steps that every woman should take in order to protect herself:
1. Take the driver’s seat. Skip relying upon someone else to worry about retirement or financial planning. If you haven’t in the past, get involved in the conversations regarding your personal finances.
2. Think emergencies. Every woman should have an emergency fund in place. Even those who feel secure in their career or relationship can, at times, find that financial emergencies arise. Whether it is an unexpected medical bill, a divorce, or some other complication, an emergency fund will help soften the blow.
3. Take care of yourself. Single women of working age, for example, may want to have disability insurance in place, since they may not have someone to fall back on if something prevents them from working. Long Term Care insurance can potentially help to reduce or eliminate having to depend on children or anyone else to take care of you if or when you can no longer take care of yourself.
4. Be realistic. Have an honest conversation with yourself about what you can afford to spend and what you’re currently spending. If you spend more than you make and don’t save enough, poverty is the most likely outcome. Once you get control of your budget, make a plan to save for retirement because social security alone will not be enough to live comfortably.
5. Ask an advisor. Whether women can’t find the time, or are intimidated about the process, it’s important to take the time to find an adviser who you can feel you can trust and makes you feel comfortable. Try to find a certified financial planner, since they are held to higher industry standards in regards to education and experience. You can visit to find one in your area.
“It is really important for women to take their own steps to help ensure their financial future,” added Fraelich. “The process can be very empowering and potentially rewarding as they realize the benefits and the sense of security that it can bring.”
Samantha offers securities and investment advisory services through NFP Securities, Inc. Member FINRA/SIPC. Bernard R. Wolfe & Associates, Inc., has provided financial management strategies and investment services since 1981. They assist a wide range of private and corporate clients with everything from retirement planning and investments, to divorce and estate planning.
About Bernard R. Wolfe & Associates, Inc.
Bernard R. Wolfe & Associates, Inc., founded in 1981, provides experienced wealth management strategies and institutional investment services. The company is led by a team of certified financial planners, professionals who have over 65 years of combined experience in the field. The team provides professional financial planning guidance to a diverse range of personal and corporate clients. To learn more about Bernard R. Wolfe & Associates, Inc., visit the website at.
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Source:
PBS. Women and Investing. < >
Women’s Media. Investing Wisely: What Women Need to Know. April 2011. <>