Financial Planning Issues for Women

Brought to you by A. Gary Katz
In conjunction with Lincoln Financial Advisors or Sagemark Consulting, a division of Lincoln Financial Advisors, a registered investment advisor

Women face a number of challenges when it comes to money. On average, they earn less than men but live longer. Women are also more likely to leave the work place for a period of time, forfeiting wages and benefits.

The result? Many women have to make ends meet with limited financial resources. It’s no surprise, then, that a recent survey1 found over half of middle-income women feel dissatisfied with their current financial situation and uncertain about their future financial needs.

Time for a Reality Check

Developing good financial management skills is a matter of taking time to learn the fundamentals and establish a working financial plan. For women who are juggling a variety of responsibilities, however, finding that time can be a challenge. If you’d like to have better control of your finances, here are some suggestions.

Adopt a Budget

Coming up with a budget is a key factor in taking control of your finances, especially if you’re usually out of money by the time payday rolls around. A budget doesn’t have to be about depriving yourself; it’s about seeing how you’re spending your money and deciding where to cut back.

Start by keeping a list of everything you spend for a month or two. Then, divide the list into categories, add the numbers up, and go over the results carefully. You may be shocked at how quickly “little” expenses — a gourmet coffee on the way to work every morning, a movie every Friday night — add up. And you may be pleasantly surprised at how easily you can cut back on spending and boost your savings.

Make Saving a Habit

It’s very likely that you have several financial goals you’d like to accomplish. So you’ll want to put money away regularly. Arranging for a direct deposit from your paycheck into your savings account is an ideal way to make your goals a top priority.

One important goal you should add to your list is to build up an “emergency fund.” Ideally, you want to have a savings account with enough money to cover three to six months’ worth of expenses. Other goals might be saving for new furniture, a car, or the down payment on a house. If you have children, you may want to save so you can help them with their education expenses.

Protect Your Income

Make sure you have adequate life insurance coverage, especially if your family relies on your income or you stay home to provide care for children or relatives. You may also want to consider disability income insurance to provide needed income in case you’re unable to work.

Invest for Your Future

Investing your money wisely can help you toward your goals. You’ll want to keep some savings in low-risk investments (such as money market accounts) where the money is easily accessible. For long-term goals, consider investments that have more earning potential, such as stocks and bonds, and funds that invest in these securities. Another smart investment move: Establish a tax- deferred retirement plan if you can. It’s a smart and convenient way to invest for the future — especially if your employer matches a portion of your contributions.

Investing doesn’t have to be complicated. Start with a few basic strategies and build up your knowledge as you go. Choosing a portfolio of investments and following your progress will be a learning experience. For help, talk with a professional financial planner. He or she can work with you to develop a plan that helps meet your needs.

A. Gary Katz is a registered representative of Lincoln Financial Advisors Corp., a broker/dealer, member SIPC, and offers investment advisory service through Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor, Lincoln Financial Advisors, 61 S. Paramus Rd., Paramus, NJ 07652. Insurance offered through Lincoln affiliates and other fine companies. This information should not be construed as legal or tax advice. You may want to consult a tax advisor regarding this information as it relates to your personal circumstances. The content of this material was provided to you by Lincoln Financial Advisors for its representatives and their clients. CRN-880419-031714