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March 2024


Dear Joanna,


Happy International Women's Day. Since it's also Women's History Month, let's pause, reflect, and celebrate our efforts, those of pioneering women and male allies who co-created systemic changes that improved women's economic fortunes and made it possible for women to step into their financial power.


Here is a quick timeline showing how far we have come, financially speaking:


  • Just half a century ago, the traditional archetype of the male breadwinner was a norm, with husbands serving as the primary earners in 85% of opposite-sex marriages. Today, that figure has dwindled to 55%.


  • Before the 1970s, it was not uncommon for credit card companies to require a husband's signature or approval for a married woman to obtain a credit card. In 1974, the Equal Credit Opportunity Act (ECOA) changed that. However, it took some time for the norms of the culture and business world to catch up fully.


  • It took four decades for college-educated women to participate in the workforce on par with men. Now we comprise 51% of the workforce.


  • Since 1980, women have increased their presence in most of the 10-highest-paying occupations in the U.S., now at 35% – up from 13% in 1980.


51% or $22 trillion of the personal wealth in the U.S. is now controlled by women. And more is projected to trickle down to women as a result of the "great wealth transfer." To learn more about it, read on.


Women having more money is good for everybody. Why? Because women typically reinvest 90% of their wealth into their families and communities. That number for men is only 35%. When women are financially and economically empowered, they invest in their children, education, health, caring for their aging parents, or starting a business. Money is rarely the end goal. It's just a means to the end.


But …. only 38% of women investors work with financial advisors. Why? Women simply don't trust the industry built on commissions, fees, and egos, wrapped up in the bear-and-bull and win-lose narrative. I was one of those women who realized that working with a Wall Street firm was neither good for my wallet nor my soul. So, to safeguard our wealth, I became a financial advisor (it's a topic for another blog post).


My women clients are varied: a woman entrepreneur needs different advice than a widow, a corporate executive needs different advice than a divorcee, and so on. But while their needs differ, they all share the desire to be understood, informed, and partner in financial decision-making.


Contrary to what many believe, not everyone needs to work with a financial planner. While many of my clients are brilliant women capable of managing their wealth, they choose to spend their time, energy, and talents on other priorities. That'ss why they team up with me to develop a systematic way to make smart, informed decisions to reduce risk and increase gains. Research shows that people with a financial plan have 2.7x the net worth of those without. There is also evidence that the money confidence gap between men and women shrinks if a woman works with a financial advisor.


Whether you work with an advisor, are considering working with one, or are looking for one who is a better fit, I trust you have reasons to celebrate wins along your financial journey.


Thank you for subscribing and reading. If you find it helpful, please share it with a woman in your life – your co-worker, friend, mother, sister, daughter, niece, or mentee.


Dream. Plan. Prosper.

WHY FINANCIAL PLANNING IS A WOMEN’S ISSUE

Yes, we undoubtedly have come a long way, yet the gender pay gap persists, and the following data shows where progress is urgently needed.

CLOSING THE GENDER GAP: FINANCIAL LIFE PLANNING FOR WOMEN


Financial planning is a women's issue. With women controlling $10 trillion in investment assets, the potential for future growth is enormous. Women must start planning for and investing in their future to create the best possible lives for themselves, their loved ones, and causes close to their hearts.


Read about how to close the gender gap here.


THE GREAT WEALTH TRANSFER


51%, or $22 trillion, of the personal wealth in the U.S. is now controlled by women. And more is projected to trickle down to women as a result of the "great wealth transfer." Around $84 trillion will be transferred to the younger generation in the next few decades. Perhaps no group will benefit more from that transfer than women. Read here about how this version of "trickle-down" economics finally could be living up to its promise.

HOW MUCH DO I NEED TO RETIRE?


Fidelity’s retirement savings by age gives you a benchmark. Your lifestyle and financial goals are individual, but having a guide to strive for is good. These salary multipliers are conservative recommendations and assume a poor market and economic situation. Factors to consider: social security benefits, where you will live in retirement, what you will do, how you will spend your time, whether you want to earn some “recreational” income, etc. 

KNOW YOUR MONEY TYPE


Have you ever wondered why you are the way you are with money? Understanding how and why we are spending is the piece that allows us to take control of our financial well-being. Knowing Your Money Type may bring clarity. Click this link to take the Money Type personality assessment.

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