| On average, women live approximately seven | | | | The The great Henry Ford once said: |
| years longer than men. But very often women | | | | |
| never provide for themselves sufficiently to | | | | "You don't get rich by that what you earn. |
| have enough money to live on, and being | | | | You get rich by what you don't spend." |
| financially secure during those extra years. | | | | |
| | | | If you're a home-mom with only your husband |
| Most women are up against more and different | | | | working, you can open up a spousal IRA in |
| financial challenges than men. On average, | | | | your name. Your husband can contribute to it |
| they unfortunately still don't earn as much | | | | and you'll both have more money during |
| as men do, and chances are that they are more | | | | retirement. |
| likely to take time off during their careers | | | | |
| to raise children. Furthermore, women tend to | | | | 2. Make sure that you have enough |
| invest less than men do. | | | | investments. Now I don't necessarily mean |
| | | | stocks, options, futures or commodities. |
| All this results in financial difficulties | | | | Depending on your knowledge about the stock |
| and hardship for many women later in life. | | | | market, these may not be suitable for you |
| | | | 'cos they do bear certain risks. What I mean |
| 1. Most married women leave financial matters | | | | is having policies like mutual funds or life |
| to their husbands. So, if you are married, | | | | insurance to cover at least five years of |
| don't leave the financial planning to your | | | | income. |
| husband alone. Because marriage should be a | | | | |
| 50/50, or win-win situation anyway you must | | | | 80 - 90% of all investments should be |
| always stay involved as an equal. | | | | invested in secure and long-term policies! |
| | | | |
| As I already mentioned in a previous article | | | | Half of all marriages end in divorce, and |
| that I wrote, never give control over your | | | | three quarters of all women are eventually |
| money to someone else! I can't stress this | | | | widowed. Good investment policies can also |
| enough. I've have seen people go down | | | | account for an unexpected illness or accident |
| financially before my very eyes because of | | | | that can impair your finances. If your |
| this fatal mistake. Lucky for one person that | | | | employer doesn't offer it, obtain individual |
| she's my own mother! At least me and other | | | | coverage youself. What is also a good idea is |
| family members can support her, because my | | | | to have up to 3 monthly salaries stashed in |
| father doesn't. | | | | your bank account that you can get hold of |
| | | | quickly...just in case! |
| She left all the finances in the hands of my | | | | |
| father that unfortunately didn't know the | | | | 3. Never cash in on retirement funds! To many |
| very first thing about controlling and | | | | people end up cashing in their retirement |
| handling money. He had absolutely no money | | | | fund balances (whether it's a 401 (k) or any |
| management skills whatsoever. | | | | other retirement plan) when they change jobs. |
| | | | |
| And then they separated after 30 years and | | | | Still others take out loans against their |
| the financial downward spiral started. | | | | balances, permanently reducing the amount of |
| | | | earnings they would have accumulated. |
| If you're not involved in your day-to-day | | | | |
| family finances, you're putting yourself at | | | | If you want to accumulate wealth, |
| risk. | | | | tax-deferred retirement plans like 401(k) |
| | | | plans are a great way to do it, but resist |
| So if you're married and you let your spouse | | | | the urge to tap those funds before retirement |
| handle all the financial matters, you're at | | | | 'cos that's not the idea of a retirement |
| risk if your spouse dies or becomes seriously | | | | plan! |
| ill or if you divorce. Know the details of | | | | |
| your family's finances, investments, debts, | | | | Also people that emigrate into another |
| retirement savings, etc. Discuss your savings | | | | country cash in their retirement balance and |
| options with your husband and learn your | | | | wast it for things like the move, the flight |
| financial options. | | | | into the new country, new furniture or a new |
| | | | car 'cos the old one wasn't worth taking |
| Don't turn your investments and financial | | | | along anymore, etc. |
| affairs over to a broker or financial | | | | |
| consultant either without keeping track of | | | | That's not the idea of a retirement plan |
| what is being done with your money and being | | | | either! If you change countries you should |
| involved in investment decisions. Never give | | | | know 2 things: |
| control of your money to anyone else. | | | | |
| NEVER!!! | | | | - Is it temporary... |
| | | | |
| By the rule of thumb men should save 10% of | | | | - or it it permanently? |
| your gross income each year. Women however, | | | | |
| should save at least 15%. This is to account | | | | If it's temporary, then leave your money |
| for their longer life expectancy and the loss | | | | where it is and let it grow earning interest. |
| of salaries many women face when they raise | | | | |
| their children. | | | | If it's permanently, then you can cash in |
| | | | whatever you've accumulated so far and |
| Now I know that for many women 15% is a lot | | | | reinvest it in another retirement plan in the |
| of money. It all boils down to money | | | | country you're now living in. |
| management again. To gain wealth and | | | | |
| financial freedom, you should always "pay | | | | And if you have an even better idea...great! |
| yourself first" and then live on what's left | | | | Well done! As long as you don't squander you |
| and not spend first and save what's left at | | | | retirement plan flushing it down the drain! |
| the end of the month. | | | | |
| | | | All the best! |