Hello,
Did you know that 90% of all women will eventually be solely in charge of household finances? Unfortunately, that can also be very scary for some. To me this was very exciting.
I try very hard to empower women around me when it comes to financial planning. One of the reasons I wanted to do the podcast this week is because, based on a recent survey, it was found that only 20% of women feel very well prepared to make wise financial decisions. Click here to listen.
If 90% of women are going to be solely in charge of planning, would you agree that you need to be 100% prepared to make the decisions?
I recently heard this story. A nice retired couple had their finances like many people do. For the purpose of this story we’ll call them Craig and Delores. Craig controlled or managed the finances. And Delores didn’t seem interested in their financial plan.
She knew Craig would always take care of things. Even in his ’70s when Craig was diagnosed with congestive heart failure, Delores still wasn’t involved.
Thank goodness, even after diagnosis, Craig lived a very long life, but he eventually passed away. Delores was a widow and was forced to now find out about their finances. Little did my she knows that when Craig took his pension, he chose single life.
They had very little savings and life insurance. She was going to be forced to live off her Social Security check. Today, almost 20 years later, Delores is at the amazing age of 91 and on Medicaid.
If she would have gotten involved or had been involved with the financial planning with the advisor, she would have been able to express concern as to what would happen to her once Craig passed.
It isn’t uncommon for us to encounter a couple where the man has been the sole person in charge of the finances; this can lead to unforeseen problems if and when the husband makes decisions not planning for what will likely be his death prior to his wife’s.
Think of this: What happens if he was the primary or even sole bread winner? What becomes the financial reality if his wife is left behind and hasn’t been involved in the finances or the financial decisions?
We have seen scenarios where the woman is left without the financial resources that she needs to maintain her lifestyle.
I am not saying women have to control all household finances. What I am saying is you have to be involved. You have to make sure your voice is being heard. It is completely alright if you are married to have a different investment philosophy than your spouse.
Women sometimes are more conservative investors than men. What you need to make sure of is the advisor you work with hears both of your voices.
They have to listen to concerns from both of you, because on average women live five years longer than men. Make sure both of your lifetimes are being planned for.
Have a great week!
David C. Treece,
Financial Adviser
