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Why Women Should Be Involved in Financial Planning

Back when traditional gender roles were upheld across most homes, women were the homemakers and men were the breadwinners. Consequently, men were also the financial planners since they were the ones making money. At most, women were responsible for daily budgeting, but they weren’t part of crucial decisions such as investments and big-ticket item purchases.

Society has come a long way since then. Double-income households are the norm nowadays, with both spouses working and earning money. But some women still don’t participate in their respective families’ financial planning for various reasons.

Maybe they grew up in an environment where men took charge of finances, or they feel they don’t have enough time to share this responsibility with their husbands. Maybe they’re earning less money, or they think they’re not financially literate enough.

These reasons are valid, but they are nowhere near as good as the following reasons why women should be involved in financial planning.

1. Women live longer than men

As of 2021, women have a life expectancy of 73.8 years, which is five years longer than men’s life expectancy of 68.4 years. Now if you’re married, that means you’re likely to outlive your husband. We have witnessed countless times how difficult it can be to have to take on all the information for the first time regarding your investments, distributions, and everything else that comes with your wealth during such a stressful time. Save yourself that unnecessary stress by orientating yourself with your wealth proactively.

2. Women tend to be better savers and are more risk-averse than men

Women tend to be better savers than men, and typically more risk averse than men in general when it comes to investing. We have seen this natural difference in saving and investing styles between married clients work to their advantage, because they’re bringing different perspectives to the conversation. This results in an even more thought-out, customized approach to investing and planning for their family.

3. Two heads are better than one

Estate and Legacy Planning conversations should involve both spouses. As advisors, our job is to proactively address all components of your wealth, and that includes what you want your financial legacy to look like for your beneficiaries. We have seen a substantial difference in how that conversation goes when both spouses are talking about this with their advisor in person, Financial planning works even better when the couple is willing to seek the guidance of wealth management advisors who have relevant expertise and experience. They can help the couple understand different markets, identify investment opportunities, and navigate complex financial decisions. They can provide objective advice to help the couple make decisions based on facts, especially in situations where emotions can cloud judgment. When it comes to growing and managing wealth, it takes a village!

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. Investing involves risk including loss of principal. No strategy assures success or protects against loss.

Talk with an advisor.

Engage with a qualified partner for financial guidance built on loyalty, empathy, and integrity.

Talk with an advisor.

Engage with a qualified partner for financial guidance built on loyalty, empathy, and integrity.