By Dawn Moore, Senior Personal Trust Officer
According to Artemis Strategy Group, more than 90 percent of women are estimated to handle their family’s day-to-day finances, yet less than half are involved in their own financial and estate planning.
Unfortunately, many women default to their partners on crucial decisions about investing, retirement planning and other aspects of financial planning. Women need to be informed and involved when it comes to money and planning for their financial future.
Financial planning is not reserved for the extremely wealthy and doesn’t have to be intimidating. Here are some tips for preparing for the future.
Let your personal values be your guide.
Write down your financial goals and the values that underlie those goals. This is the first step in creating a financial plan. Detail what success looks like for you and your family, and be as specific as possible. Putting a plan on paper helps you clarify your financial goals. Once the plan is on paper, you have a foundation for conversations with your partner about which goals to tackle in which order.
Know your assets.
Be sure to stay aware of what you own individually and jointly with your partner. Keep a balance sheet showing a description of all your assets, the name in which the assets are held and the location where the assets are held. This balance sheet should be updated at least annually. Both divorce and death bring your assets into sharp focus and being prepared by understanding what you have sets you up to better deal with these stress-filled events. Your assets include things such as investment accounts, stocks, bonds, real estate, partnership interests, checking and savings accounts and retirement accounts.
Be prepared to manage transitions.
In the event your spouse dies before you, it is essential to make sure your assets are protected. According to Centers for Disease Control and Prevention, women outlive men by an average of five years. If you live longer than your spouse—and science says you likely will—you will face additional planning concerns.
Revisit your plan as life changes.
It’s important to revisit your plans annually and every time you experience a major life change. Whether you’re newly married, widowed or recently divorced, there are updates to be made to your financial plan.
Hopefully you feel motivated to begin working on a financial plan. In doing so, you are not only protecting yourself – you are protecting your loved ones, too.
Dawn Moore is a senior personal trust officer with First Farmers’ Trust & Wealth Management.
