Establishing a holistic financial plan is one of the first steps you can take to create a roadmap specific to your journey. Your financial plan is a tool you can use to guide decisions and set goals.
1. Savings strategy
You might be avoiding the process of developing a financial plan because you think it is too late in life to create one. It is never too late to get started. Ninety percent of women will be solely responsible for their own, or their family’s finances at some point. Having a solid savings strategy in place to cover unexpected expenses, your children’s education and large purchases is key. Your dream vacation or goal to have a second home can be achieved if you start now and stick to your financial plan.
2. Retirement strategy
A recent report by the National Institute on Retirement Security‡ found that women are 80% more likely than men to be impoverished in retirement and on average have less savings.
There are many different facets to a retirement strategy including using the right savings vehicle, understanding the taxes associated with your accounts and spending money wisely. Educating yourself before and during your retirement is key.
3. Family awareness
An Investment News‡ special report on women and investing estimated that up to $25 trillion will be passed to women by 2030, through inheritances from either parents or spouses. It is important to build into your financial plan how you want your wealth to be transferred to your family or to a different entity such as a charity. Start the conversation early with your family to determine how to execute on your strategy and bring your wishes to life.
4. Financial advisor
A financial advisor can help you put all the pieces of your financial puzzle together. Your advisor should be a trusted resource for you as you build your holistic financial plan. Lean on your advisor’s expertise to learn the best approach to meeting your individual goals. It’s important to be honest and transparent with your advisor – they need to know all of the nuances about your finances and goals in order to create a successful strategy.
Revisit your financial plan regularly, as doing so can allow you to make adjustments as you journey through the twists and turns of your life. And always remember, it is never too late to start planning and saving.
You need to earn, grow and plan for the life you want, and beyond. Stay in the know with UMB and learn more about how we support Woman and Wealth.
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