1. Embrace Financial Independence:
Financial independence is not only empowering but also a vital aspect of long-term financial security. Regardless of your marital status, having control over your finances is crucial. Some examples of this include creating your own bank accounts, contributing to retirement plans, and participating in financial decisions.
2. Plan for The Unexpected and Unfathomable:
While it’s not pleasant to think about, planning for the unexpected is essential. In the event of widowhood or divorce, understanding your financial situation is critical. Ensure that you have access to important financial documents, know where assets are held, and have a plan for managing your finances independently. Working with the right financial advisor can help you to create plan you feel confident about.
3. Establish and Maintain an Emergency Fund:
An emergency fund provides a financial safety net in times of unexpected expenses or income disruption. Aim to save three to six months’ worth of living expenses in a readily accessible account to help you weather any financial storm.
4. Invest for the Long Term:
Investing is one of the most effective ways to build wealth over time. Diversify your investment portfolio to manage risk and aim for long-term growth. Consider consulting with a financial advisor to create an investment strategy aligned with your goals.
5. Prioritize Retirement Savings:
Planning for retirement should be a top priority. Contribute regularly to retirement accounts like 401(k)s or IRAs. Take full advantage of employer-sponsored retirement plans and consider increasing your contributions over time. Know that retirement is not a “one-size-fits-all” situation. Your goals should be tied to what you want your retirement to look like. Be it a second career, traveling the world, more time with loved ones, or whatever sets your soul on fire!
6. Understand Social Security Benefits:
If you’re married or divorced, be aware of your Social Security benefits. You may be eligible for spousal or survivor benefits, which can significantly impact your retirement income. Familiarize yourself with the rules and options available to you. Even better yet, work with a financial advisor who can help you make informed decisions around your Social Security benefits.
7. Review and Update Beneficiary Designations:
Regularly review and update the beneficiary designations on your insurance policies, retirement accounts, and other assets. This ensures that your assets are distributed according to your wishes and can prevent complications in case of life changes.
8. Protect Your Credit:
Maintain good credit by paying bills on time and managing debt responsibly. A solid credit history can be crucial when applying for loans or negotiating favorable terms.
9. Consider Long-Term Care Insurance:
Long-term care insurance can provide financial protection in case you require extended healthcare services in the future. Explore options that fit your needs and budget, as this coverage can help preserve your assets. This is another space where there is not a one-size-fits-all approach and each person’s needs can differ.
10. Engage in Estate Planning:
Estate planning ensures that your assets are distributed according to your wishes and can minimize estate taxes. Consult with an estate planning attorney to create a will, establish trusts, and designate a power of attorney and healthcare proxy.
11. Seek Professional Guidance:
Financial planning can be complex, and it’s wise to seek guidance from a certified financial planner or wealth advisor. They can help you create a customized financial plan tailored to your goals, dreams for your future and current circumstances.
12. Foster Financial Education:
Invest in your financial education by staying informed about financial topics, attending seminars, and reading reputable financial publications. Knowledge is empowering and can help you make informed financial decisions. Just be aware of where you’re getting your information as there is a lot of “misinformation” out there!
13. Stay Informed and Empowered:
Stay informed about changes in tax laws, investment opportunities, and financial trends. Empower yourself with knowledge to make confident financial decisions. Even better yet, work with a financial advisor who can focus on the often complex changes this industry faces, so you can focus on what you most enjoy and rest assured your best interest is at heart.
14. Don’t Be Afraid to Ask Questions:
Financial matters can be complex, and there’s no shame in asking questions. Whether you’re meeting with a financial advisor or discussing finances with your partner, seek clarity and understanding. No question is a bad question. You should never be made to feel lesser than by asking a question to be empowered in your finances!
15. Build a Support Network:
Share your financial goals and challenges with trusted friends or family members. A support network can provide valuable advice, encouragement, and accountability.
Financial planning is a critical aspect of securing your future and achieving your biggest goals and dreams for your future. For women, it’s especially important to be proactive and informed. By following these tips and seeking professional guidance, you can take control of your financial destiny and help build a prosperous and secure future. Remember, your financial well-being is a journey, and with careful planning, you can navigate it with confidence and peace of mind.
This commentary on this website reflects the personal opinions, viewpoints and analyses of the Sweet Financial Partners, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Sweet Financial Partners, LLC or performance returns of any Sweet Financial Partners, LLC client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Sweet Financial Partners, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.