Even just a generation or two ago, women rarely had the responsibility to plan their own financial futures. It’s only in the last 50 years that women gained the right to open their own bank account or apply for credit in their own name.
As such, the skill of managing wealth isn’t passed down to us through our mothers and grandmothers. It’s quite common to feel lost or uncertain, so here are some answers to the questions that I am commonly asked when meeting new clients.
Why is wealth management important, especially for women?
Taking a proactive approach to money management and planning for the future is important for everyone. However, the statistics show that women are less likely than men to seek professional help with financial planning, but it’s something they shouldn’t overlook.
There are a wide variety of life events, such as marriage or divorce, pregnancy and motherhood, career changes, or health issues (of your own or someone you love) that can affect women financially, and it’s sensible to be prepared for them, or seek advice when they happen.
What are some common themes in women’s finances?
While every woman’s situation is different, there are some common concerns that come up at different life stages, from saving up to buy a home to budgeting for your children’s education.
The average woman lives several years longer than the average man, but again, the statistics show that, in the main, she earns hundreds of thousands of pounds less over her lifetime, so retirement planning is crucial.
Many women reach a certain age and find that time has flown by, and they’re not as prepared for retirement as they’d thought they would be. Having been focused on your family or business, you may suddenly realise that there aren’t as many years left as you ideally need.
What’s the first step to addressing your financial priorities?
You’ve already taken the first step, by recognising the need for action. The next thing a financial planner would recommend is establishing your financial baseline: where you are today in terms of your home, business, pension, savings, etc. and see if anything jumps out at you that’s missing.
What comes next?
Getting to the heart of your personal goals over the next five, ten, or 15 years. Financial planning isn’t just about generating more money. That’s a means to an end; a way to achieve the life you want and prioritise the things that are important to you, whether that’s your health, success for your children, or anything else.
It might help to choose words that resonate with you, like security, freedom, confidence, or stability. Your financial plan will be working towards those things.
How can a professional wealth planner help?
A financial planner will get to know you and the things you care about. In partnership with you, their job is to put together a roadmap for achieving your goals and to recommend the financial products that will position you for success.
It’s not a one-off conversation, it’s an ongoing relationship and as your circumstances change, your planner will ensure that your plan evolves and your progress remains on track.
Please note: This information does not constitute financial advice or a personal recommendation. Investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future returns. You may not recover what you invest.
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