57.4% of the workforce in the US is made up of women. If you looked back even a decade or two ago, that number would be significantly lower.
Women’s roles are changing. More women are not only in the workplace but are working at gaining equity in pay and leadership roles.
As women take on different societal roles, they also need to learn to manage and grow their money for the future.
So, what wealth management advice should all women have? Read on to learn some important wealth management tips for women.
Women and Their Role With Wealth
Until recently, the idea of seeking wealth was dominated by men. As more and more women join the workforce and take on different roles, they need to pay attention to wealth management and how to invest and grow their money.
The statistics show that women are expected to control up to $30 trillion of assets by 2030, roughly a $20 trillion increase from 2016.
As women earn more and control more assets, they also need wealth management skills.
What Is Wealth Management?
Let’s start with a basic understanding of wealth management. When a female seeks wealth management services, their goal would be to:
- Grow wealth
- Manage liability exposure
- Devise strategies to pass their wealth on to heirs
A wealth management plan should be a comprehensive look at finances, tax planning, and planning for the future.
Wealth Management Objectives for Women
So what objectives should women have when they seek wealth management services? Wealth management for women should include:
- Investing advice and planning
- Complete financial planning
- Tax planning
- Estate planning
- Legal service as it relates to finances
- Retirement planning
You want to find a wealth manager to help you set financial goals and refine the strategies needed to meet those goals. Ultimately, wealth management is a plan to maximize a woman’s wealth.
How Much Money Do You Need to Seek Wealth Management Services?
While some might set a hard number on wealth management services, your goal should be to have control of your assets.
It doesn’t make sense to seek wealth management services, for example, if you have lots of debt. You want your wealth management plan to include ways to grow your money.
If the services cost more than you’ll potentially make in growth, you might not be ready. For the most part, though, getting control of your finances is the first step, and a wealth manager can help you do just that.
Reasons Women Need to Pay Attention to Wealth
While women are gaining a changing role with earnings, there is still room for change.
As women enter this arena with some deficits, it’s all the more reason to pay attention to their wealth.
The simple fact is that women still earn 82.3% of men’s income. It’s important that women pay attention to their income and make the most of it as they continue to strive for equal pay.
Having children can impact women’s wealth. It also adds to the importance of seeking wealth management services.
Women who have children often see a wage drop compared to men. In fact, women make .71 cents compared to fathers, who make a dollar.
Lifespan is an important consideration for women too.
The data shows that women live longer than men. They need to have a handle on their finances for the long haul.
It’s also likely they will receive wealth as their spouses die before them.
Because of traditional roles of the past, women have not had the same financial literacy exposure as their male counterparts.
Being aware of this and working to change it is the first step in a wealth management plan.
Gaining Financial Independence as a Woman
So what finance tips for women are there? What should all women be doing as they work towards seeking a wealth management plan?
Women need to have an investment strategy. Take advantage of workplace investing if it’s available to you. This might include a work 401k or pension plan.
Investing can be the beginning of a wealth management plan and protect against potential inflation or life changes in the future.
Monitor Spending and Stick to a Budget
More women than men handle the household money. It’s important to understand your spending. Do you have a good idea of where your money goes?
Take the time to create a budget where you can account for every penny of your money. Then stick to that budget like glue.
An important part of your budget will be the saving component.
You want to have an emergency fund set up with several months of expenses.
Once you’re prepared with an emergency fund, you can use savings for investing and growing your wealth.
Plan for Retirement
As more and more women take on an important role in the workplace, they also need to prepare for the day when they leave the workforce too.
Do your homework and consider the best retirement plans for you and your family.
Get Help From an Experienced Wealth Manager
It can be overwhelming to know where to begin, even if you have some financial literacy. There are many options for investing, retirement planning, and estate planning.
The key to a quality wealth management plan is getting help from an experienced wealth manager. Use this person’s knowledge to develop a wealth management plan that fits your unique needs.
You should select a wealth manager who will work to get to know you and help you develop a plan that fits your financial picture.
Wealth Management Advice All Women Should Use
The best wealth management advice for women might be not to avoid getting started. It can be overwhelming and even intimidating. It can also be empowering to take control of your finances.
If you’re looking for someone to help you build a solid financial plan, we can help. Contact us today so we can get started planning a robust financial future for you.