~Maurice Stouse (Financial Advisor with Raymond James & Associates)
While there are many financial articles in general, there are few which address the unique challenges faced by many women. Over the coming months I will be writing articles which address these challenges and attempt to give you things to think about if not to actually supply you with answers. Today, I’d like to address some of the most common concerns and offer some guidance about how to tackle them. This is not meant to be a comprehensive list but they are the most common fears I have helped my clients with over the past 30 years. In no particular order:
- Having enough money in your checking account
- Outliving your money
- Caring for others and family
HAVING ENOUGH MONEY IN YOUR CHECKING ACCOUNTS
So many women I have worked with are more concerned about the return OF their money rather than the return ON their money. They take a great deal of comfort in having a “stash of cash” and being able to access their money immediately and with ease. I encourage this. Why? Because it’s not always about return on investment. Feeling financially secure is priceless. How much to leave in cash, at the bank, depends upon a number of factors and I work closely with my clients to ensure they have the right amount so they can be confident in their cash reserves.
OUTLIVING YOUR MONEY
This is probably THE number one concern. Women generally live longer than men, take more time out of the workforce, generally get paid less, generally are more risk adverse and may not have portfolios that perform to their maximum potential because, as noted, many women generally would rather have cash than to invest in stocks and potentially lose some of their savings. The bottom line is no one wants to be old and penniless or have to rely on their children for support and a place to live. The first order is to help clients set up a plan designed to support their intended lifestyle. Typically, we can achieve balance between risk and reward, safety and confidence.
CARING FOR OTHERS
Caregiving can be exhausting both emotionally and financially. Caregiving frequently falls to wives, sisters, or daughters. It is essential to have a plan in place to address how to provide care as spouses and parents age or if there are special needs family members. The plan should be one where either the caregiving can be provided for by oneself or, that we have planned to have the financial resources to hire and pay caregivers. The need for long term care continues to grow and women are at the forefront of the challenge.
In conclusion, this is not a comprehensive list of concerns nor a specific recommendation about how to address each issue. Rather, it is to begin the conversation and provide food for thought. Please work with a professional financial advisor who has experience with these matters.
Next month, we will open the topic of end of life planning which entails having the right things in place; power of attorney, wills, trusts and other important documents.
Maurice Stouse is a Financial Advisor with Raymond James & Associates, 34851 Emerald Coast Pkwy., Suite 200, Destin, FL 32541. Raymond James & Associates, member New York Stock Exchange/SIPC. Phone: 850.650.0990.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Maurice Stouse and not necessarily that of Raymond James.
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