We have partnered with the experts over at New York Life – South Texas, to provide Coastal Bend families with information and resources on making smart and responsible financial decisions.
In our first Financial Friday installment, 5 Reasons Young Families Need Life Insurance, I shared my personal story on how I learned this the hard way.
In our next installment, I shared more about my experience and The importance of needing a will.
Today I want to share some information that is SUPER specific to women and share 5 important things that we, as women, need to know. After my husband died, there were so many things I’d never paid attention to. I had A LOT to learn. Nearly 5 years later and I can tell you one thing, definitively: I feel so much more CONFIDENT and SECURE having this knowledge. Knowing the in’s and out’s of our family’s finances is so important and I am so PROUD of myself for taking the time to do so.
Today our friends at New York Life are sharing some great pointers – take a look and let me know if you have any questions!
According to Morningstar.com, the results of a recent study about women and retirement preparedness are troubling. The factors contributing to women’s retirement shortfall include gender gaps or disparities in:
- Life expectancy
- Social Security benefits
- Healthcare and long-term care needs
- Care for dependent children and/or aging parents
If a secure retirement is important to you, prudent investing makes sense. And it’s never too early, or too late, to get started. Here are five tips to consider.
- Cash reserves. Prudent investing should be viewed as a longterm strategy for building, protecting and transferring wealth in order to meet your financial goals.Put time on your side. Make certain you have enough cash to cover several months of expenses, in the event of an unexpected expense or loss of salary, before you begin investing. That way you won’t need to liquidate your investments earlier than planned. And they’ll have time to do what you intended.
- Investment choices. There are a plethora of investment accounts, options, and strategies available. Whether you invest through an employer’s plan, work with a financial professional, or go it alone, take the time to understand the fees, risks, volatility, and liquidity associated with each. Attending seminars facilitated by the provider of your employer sponsored plan is a good place to start.
- Investment strategies. Regularly assess your financial needs, risk tolerance, and time horizon. This will help you develop and maintain an investment strategy with the appropriate asset allocation, yield and maturity dates (if applicable), and volatility. It will help you establish parameters around when it is time to liquidate certain assets, as well.
- Employer-sponsored plans. Your contributions to a 401(k), 403(b), Thrift Savings Plan, or other employer-sponsored retirement plan are made with pre-tax dollars, and earnings grow tax-deferred. Some employers even match employee contributions, making their plans an attractive option. Contribute the maximum to your employer sponsored retirement plan, which is $19,500 in 2020,2 before opening a retirement account outside of work.
- Financial Professionals. When selecting financial professionals consider their practice, relative to your needs. Are they handson? Do they offer a full suite of products and services to help you accomplish a myriad of goals: asset growth, income protection, college saving, retirement and estate planning? Do they have experience addressing the challenges you face as a single mother, business owner, divorcee, widow, or parent of a special needs child?
Ready to take control of your financial future? Do you have questions about how you can protect your family’s future? Visit our friends at New York Life – South Texas. They can answer all of your questions and get you set up!
In the meantime, check out these great resources on the blog:
2 401(k) contribution limit increases to $19,500 for 2020; catch-up limit rises to $6,500”, IRS.gov, 11/6/19.