As much as we all hate to admit it, financial planning - for business and for personal use - has long been an activity that falls on male hands. Although the majority of women handle the day-to-day financial aspects of running a family, few of them spend the same amount of time on creating long-term plans. In fact, only about 41 percent of women participate in the 401(k) where they work, compared to almost twice that for men.
Those women who do take this important step in financial planning tend to use that money too early, however, especially when the family is in financial trouble. Despite the fact that we have nearly achieved equality for the sexes in the workplace, women continue to miss out on opportunities to prepare for their retirement years.
Why Retirement Planning is Important
If you retire at 60, you could have up to 30 or 35 years of retirement ahead of you. These days, very few women are investing in preparation for these so-called relaxation years, and over half of the demographic will end up working long after the age of 60. And those who do retire often find it difficult to maintain a high quality of life because the cost of living increases at a higher rate than their returns.
For some women, retirement and financial planning isn't considered a top priority, whether it's because they consider themselves too busy or they intend to share in the support and long-term planning of a spouse or other long-term partner. The reality is that half of all marriages fail, and oftentimes to catastrophic financial damages. Even if a couple does make it to the golden years together, it is considered unwise financial planning to put all the eggs in one basket, so to speak. With two retirement funds, most couples will be better off over the long term, whether they are still together or separated when the time for retirement hits.
How Women Can Prepare for Retirement
Part of the problem for many women is that they simply don't know where to start with their financial future. The financial world can be complicated to navigate, and many women suffer from a misapprehension that they might be discriminated against based on their gender.
With the right financial advisor, this will never be the case. The best thing any woman can do is to educate herself and start small. As you learn more and start to build relationships with those you trust in the field, you can start investing in bigger things and making more informed money choices.
To start out, you should be making full use of your employer's 401(k). This will stand you in good stead later, but don't depend only on this. Investing in low risk mutual funds is an excellent way for women to get started in investing. These lock your money in for a specific term, which is perfect if you can't handle the temptation of having money in the bank.
Thanks to advances in technology and financial options, there are a number of investment options that women can take part in. Educate yourself and choose the methods that work best for you and your family. This is an important part of planning for your financial future and will make all the difference when the time comes to retire and start enjoying those golden years with those you love.
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