Put the power of knowledge to work
Women often lack investing confidence — Many women say they don’t feel fully secure about making financial decisions. According to a recent Fidelity study on couples’ behavior, wives are much less confident (85%) than husbands (96%) when asked if they could assume full financial responsibility of their retirement finances, if necessary. At the same time, more wives are concerned about being financially prepared if their spouse passes away first (23% vs. 6% of husbands.) Be sure to cover any and all investing questions with your investment professional. Make a list of questions before your visit and ensure they get answered.
Be prepared for the unexpected — Be prepared for potential threats that could jeopardize your financial security. This includes the risk of serious illness or disability, the threat of inflation or increasing tax liabilities, a sudden market downturn, and the risk of poor investment decisions or inappropriate risk management, to name just a few. Having an emergency fund and proper insurance can help. Likewise, proper asset allocation is critical, particularly during times of extreme market expansion and contraction, as asset classes grow at different rates and lose value at varying levels. Being prepared also means knowing where critical documents are kept and what you would need to do if a spouse or loved one were no longer able to assist with financial decision making.
Take action:
- Stay on top of changes in the markets by reading commentary, investing, and personal finance topics.
- Make sure you document all necessary financial paperwork and track all sources of income to which you are entitled, including pensions, Social Security, and bank, brokerage, and retirement accounts.
- Read up on what you can do to be better prepared, and create a retirement income plan.
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