Editors Note: We are happy to have Omojola on the blog today to share with us 5 tips for women to help them plan to achieve their dreams and prepare for the unexpected.
A growing economic force, women account for 47% of US wealth creators. Two-thirds of women identify themselves as primary decision-makers, not just influencers when it comes to money. And yet, four out of five women say they lack confidence in their financial knowledge.
When it comes to controlling the purse strings and managing day-to-day budgeting and spending, women do well. But they often don’t get involved in the wealth building part of the equation, leaving control of the invested family capital to their husband or partner.
Women also represent two-thirds of family caregivers, whether it’s caring for young children or aging parents. Between their responsibilities at home and at work, many women spend so much time caring for others that they forget to make themselves—and their financial futures—a priority.
Moore, who is one of America’s top 100 women financial advisors, offers the following advice to help ensure you—or your mom, daughter, sister, aunt, friend—are financially secure.
1. Talk With Your Partner About Money
Money can be a complicated and even controversial topic.
People will often talk freely about sex, drugs, and even their plastic surgery, but everyone zips up when it comes to money. The first and most important tip I give to women is to discuss their finances with their partner and their children as freely as they would any other topic.
Open discussion about money makes it easier to develop a financial plan that takes into account your family values and goals and is flexible enough to provide the security you need if you have an understanding of all the different types of assets your family has. In my experience, if a woman asks about financial planning or shows an interest in the family investments, this can sometimes be threatening to her partner, making it difficult for her to learn about the status of financial affairs without coming across as confrontational.
2. Have a Financial Plan
I encourage couples to create a family financial plan, even if it’s just a preliminary one. Talking through the plan together, what kinds of events you need to plan for—education, second homes, weddings, when you might be able to retire, a lasting legacy—is the best way for women and their partner to see where all the assets are. When all the assets are disclosed, the topic of financial planning becomes shared territory, and conversations about money get easier.
3. Factor in Widowhood or Divorce
The average life expectancy for a woman is just over 80 years, which means not only a retirement that could last 15 to 20 years or more but also a high likelihood of outliving your spouse. Are you prepared to take on the responsibility of making investment and asset all too often, women are unaware of the true state of family financial affairs until they are plunged into it due to the incapacitation or passing of their husbands? The same is true for divorcees, who suddenly find themselves responsible for their own financial well-being while considering the things you’d prefer not to think about—death, divorce, disability, allocation decisions as a surviving wife? Coping with enormous emotional stress. Disaster—allows you to plan for unexpected detours.
4. Have the Money Conversation With Your Parents
As the population ages, more and more women will need to shoulder the responsibility of caring for an aging parent. Asking your parents about their financial affairs—wills, insurance policies, investment accounts, birth certificates, passports, long-term care plans—helps you understand if and how to include them in your financial plans.
Giving your parents the gift of a financial checkup will one day be the greatest gift you could have given them. They will be prepared for whatever lies in their future, and so will you.
5. Get Educated
If you need to boost your financial literacy, educate yourself, and don’t be afraid to ask questions. Many women are reluctant to reach out to their Financial Advisor, either feeling intimidated or just reluctant to ask simple questions. It is important to entrust your wealth management to someone you can develop a relationship with and who not only understands your needs, goals and risk tolerance but can also help you understand those as well. Your advisor should be able and willing to clearly explain your financial situation, portfolio allocation and anything else—simple or complicated.
Still, you don’t need to be a master of it all. Just be confident you know enough to recognize I am committed to advancing the financial well-being of women and to being an employer of choice for women. Learn more about how I can help you achieve financial independence and achieve your goals.
Omojola began her financial advisory career with Goldman Sachs and was later recruited to Morgan Stanley following 8 years of service as an Intelligence Officer in The United States Army. As a Captain, Omojola completed two combat tours to Afghanistan in support of Operation Enduring Freedom. She graduated from Western New England University with a BA in Government followed by Masters in Public Administration from Central Michigan University. Omojola also attended The College of Financial Planning where she received her Chartered Retirement Planning CounselorSM designation. She holds a Series 7, 65 security licenses and the Life and Variable Annuity Insurance licenses. Omojola utilizes her intelligence and planning skills to develop wealth management strategies that help clients and their families establish goals, strategize solutions, and envision clear and understandable financial path for their future. Omojola immigrated to the United States from Sierra Leone at the age of 8 and resided in Gaithersburg, Maryland. She believes a balanced life is the essence of happiness, As such; she is dedicated to helping her community be a better place to live and work. She is an active volunteer at shelters for battered women and trafficked teenage girls who are in hiding. In her spare time, Omojola enjoys exercising, playing field hockey and golfing.
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