Women’s investments needs can be different | VailDaily.com

Women’s investments needs can be different

Tracy Tutag and Jeffrey Apps

Both men and women should understand how to create a financial plan that will help them reach personal goals. And both men and women rely on the same tools and techniques that make up the basics of financial planning.Often the difference is the attitudes and experiences men and women may bring to investing and the financial planning process. Here are some of the key differences.1. Traditionally, women haven’t had as much experience managing money. Until about 30 years ago, most married women did not work outside the home. And, as a rule, they didn’t get involved in the family’s financial decisions, either. Many women – even those with their own incomes – were raised to expect that the men in their lives would take care of investing.But things have changed. Whether or not a woman has her own income, she needs to know how her family’s money is invested. That’s because 80 percent to 9 percent of women will have to manage their money sometime in their lifetimes, according to the National Center for Women and Retirement Research.2. Women’s family obligations usually come first. Studies show that men consistently put more away for retirement at a younger age than do women.Why? Many working wives have smaller salaries than their husbands, so there’s not as much to put away. For many women, especially those with children, there are just more pressing priorities, like the kids’ dental work or buying a home.If you have family obligations, especially if you’re the only breadwinner, you have to weigh your obligations against your needs. Of course, you want to put money away for your children’s education – but you also need to plan for your own retirement. Setting priorities is a key element of financial success.3. Women live longer, so their money has to last longer. Even though women, on average, live seven years longer than men, the average woman actually accumulates less money for retirement than the average man. Why?• Fewer women have pensions. More women work part-time or for service and retail businesses that don’t offer such plans. Less than half of working women participate in a pension plan.• Women earn less. Therefore, even if a woman puts the same percentage of her salary away for retirement as a male colleague, the dollar amount is lower. • Fewer years in the workforce. Taking time out to have children means fewer years to build up retirement funds in a 401(k) or other plan. It also may mean lower social security payments when she retires. Ideally both the husband and the wife participate in the financial planning process but, considering the statistics, it is critical that women maintain an understanding of the plan and can manage their financial future independently if needed.Jeffrey Apps & Tracy Tutag offer securities and investment advisory services through AXA Advisors, LLC (member NASD, SIPC) 1290 Avenue of the Americas, New York, NY 212-314-4600 and offers annuity and insurance products through an insurancebrokerage affiliate, AXA Network, LLC and its subsidiaries. They can be reached at 926.0601 or tracy.tutag@axa-advisors.comVail Colorado

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