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5 Reasons Why Financial Planning for Women is Different

5 Reasons Why Financial Planning for Women is Different

26 Jul 2022

Financial planning for men is not the same as financial planning for women. Women have unique challenges, especially in the context of finance. Even if you remove the ominous metaphorical glass ceiling in the workplace, women face additional impediments to financial success.  

Let’s take a look at some specific reasons why financial planning is different for women and why every woman should lean on a proven fee-only, fiduciary CERTIFIED FINANCIAL PLANNER™Professional for assistance.

 

Increase your likelihood of obtaining financial success with experienced, guided support. 

 

1. Women Don’t Earn as Much as Men

Countless studies reveal that women earn less than men for doing the same work and the same productivity level. No matter how you break down the statistics about men’s and women’s earnings, women are shortchanged. As a result, financial planning for women is inherently more difficult.  

If you have not yet met with a fee-only planner, now is the time to do so. See how our team at McGervey can help!

Your fiduciary financial planner owes you a duty of care instead of businesses that provide financial services and products. A financial advisor will provide you with comprehensive financial planning tailored to your personal financial picture and aims. An experienced professional will make financial decisions based on detailed modeling of your financial situation, ensuring your financial nest egg expands in both bull and bear markets.  

A CERTIFIED FINANCIAL PLANNER™ Professional worth their keep does more than merely create a projection of a client’s financial future; the best in the business provide financial planning throughout the relationship. The icing on the cake is active investment management is performed on your behalf throughout the life of the relationship.  

This is the ongoing support and guidance every woman needs for financial success. The support might be enough to help level the playing field with your male counterparts. 

4 women arm in arm smiling because they have a financial advisor in canton oh

2. Women Live Longer Than Men

The average woman lives half a decade longer than the average man. The longer lifespan necessitates a comparably larger financial nest egg simply because it costs money to live. Factor in ongoing inflation, and it costs that much more to keep a roof over your head and buy food than it did in years past.  

Your dedicated planner will help ensure your wealth lasts longer, even if you end up with a single-income household after your spouse or other significant other passes away before you do. The loss of a husband makes life more challenging to live emotionally and financially. Even if your husband had a life insurance policy, you might lose health insurance or be forced to reduce your spending due to being limited to one source of income or no income at all. 

Prepare accordingly for a comparably long life with assistance, and you will rest easy knowing your financial nest egg will continue to expand as you age.

3. Women Have More Breaks in Employment

The average man only takes a break from work when he gets married, has a child, and goes on vacation. Women are more likely to miss an extended period from work as they have the potential to become pregnant. Aside from taking time off from work to give birth to a child, women also take time off to raise their offspring. 

These breaks from work mean women are less likely to be considered indispensable. Therefore, some employers view females as unworthy of a raise.  

Even women who do not have a baby or spend time away from work raising children are less likely to receive a raise simply because they have the potential to venture out from the workforce to rear children at some point in the future. Add in the fact that women are less likely to request compensation increases due to taking more breaks from work, amassing a sizable nest egg becomes that much more difficult.  

The silver lining is women have the same opportunity as men to prepare for comfortable golden years. The sooner you meet with a CERTIFIED FINANCIAL PLANNER™ Professional to develop a comprehensive financial plan, the better your chances are of meeting your financial goals, retiring by your target date, and getting the most out of life.

4. It Costs More to Be a Woman

woman standing in front of a table happy because she has a financial advisor in canton oh

Have you ever sat back and thought about our differences in costs? Experts share that women pay up to $1,300 more than men annually. Over a 78-year lifespan, that totals $101,400 for American women. 

Men spend less to live as they face less social pressure than women. Women are socialized by their peers and media, and other agents of socialization to buy a wide array of outfits, makeup, skincare products, jewelry, and accessories. 

Women are also expected to have a closet full of shoes, coats, hats, and other sundries. We are not saying this applies to all, but for the majority, this is true.

In comparison, men typically rotate the same couple of work shirts repeatedly, week-in, week-out. Men save or invest the money that women end up spending on their appearance and meeting social expectations in other regards. Instead of scrapping all the aesthetically pleasing accessories and completely defying social expectations, spend wisely and heed the guidance of an experienced financial.  

Your Akron-Canton financial advisor will create a financial plan that sets the stage for a financially enjoyable future without forcing you to live like an ascetic.

5. Women are More Likely to be Solo Financial Decision Makers

There is a common misconception that women are financially dependent on men. Though the women of yesteryear were likely to be financially reliant on a spouse, times have changed. Nowadays, women are more self-reliant—more power to you.  

Furthermore, women are more likely to outlive their husbands or other significant others and remain single or divorced. As a result, there is a greater likelihood that women will be the lone financial decision-maker in the household.  

If you do not yet have a financial plan for the future or aren’t happy with your current plan, reach out for financial planning in Akron-Canton, OH, for customized financial planning. The plan developed will serve as the financial roadmap you need to maintain a high quality of life across posterity.

 

If you are an independent female, with or without a life partner, share your financial life with a trusted advisor at McGervey Wealth Management. 

 

Ladies, you deserve a hand-up in financial success. Our team of fiduciary financial advisors looks forward to hearing from you—we will make sure you work with someone you feel most comfortable with, as this should be a lasting partnership. We look forward to getting to know you on a personal level.

Call us today, schedule a complimentary appointment, or request your wealth score to see how you fare for retirement!

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More About the Author: E. Michael McGervey, CFP®, CRPC®

Mike is passionate and skilled at helping clients solve complex financial challenges. He’s known for his thoughtful communication, educational approach, and exceptional customized service. Mike has been a sought-after source for financial television, magazines, and newspapers looking for insightful analysis. His expertise has been featured by CNBC, FOX Business and...