This month, AegleWealth supports The Women’s Fund of Greater Chattanooga at their annual Voices event as well as a women’s Leadership Elevation Summit hosted in Dalton, Georgia by The Pink Robe Society.
This prompted me to focus this month’s blog on challenges and financial considerations faced by many of us, but especially by women. Women often feel there is never enough time as we juggle personal care, family needs (children and aging parents), and career fulfillment while striving for financial stability and independence. As women, it’s important to identify our points of vulnerability and strategically work to elevate.
Starting a Career
Women starting a career often face unique challenges in negotiating for the best salary, opportunities, and benefits due to societal expectations, internalized beliefs, and workplace dynamics. Many women prioritize harmony and may avoid conflict for fear of being perceived as aggressive or uncooperative. It didn’t take me long in banking and wealth management to realize that I was going to have to learn to be my own (and best) advocate.
Additionally, gender biases in the workplace can often result in women being offered lower starting salaries or fewer advancement opportunities, making it even more difficult for them to advocate for themselves to move their careers forward. Under-performance can become a self-fulfilling, negative cycle (ex., when you start to believe you are less capable, or worth less).
Some effective strategies include: 1) researching industry standards and salary benchmarks, and leveraging data to advocate for fair compensation, 2) breaking up big goals into bite-sized targets and celebrating the wins (and tooting your own horn) along the way, boosting self-esteem and confidence, 3) negotiation training to develop and practice the skills necessary to approach negotiations confidently and assertively, 4) gathering an “advisory board” of men and women who understand your strengths and potential and will serve as a sounding board as you approach key decisions and crossroads. And there are others! Take the time to engage in the communities that are moving these conversations forward.
Living Independently
More women today are feeling less compelled to settle down in a marriage. In truth, having the freedom to prioritize your career and interests is something to celebrate and savor! Living independently may allow you more flexibility to travel, invest in further education and self-care; however, it’s even more important to prioritize wealth-building and estate planning for your future, older self.
As women continue to struggle to make equal money for equal work, and often out-live men, it’s critical to start early and grow investment reserves and assess retirement income sources to secure your future with the highest possible quality of life into old age.
Marrying With or Without Children
When women marry and start a family, there are natural compromises, sacrifices and trade-offs that come with managing household and caregiving demands. The strength of the partnership will influence things like 1) how budgeting, borrowing and investment decisions are made, 2) how childcare and household duties are divided/solved for, 3) how careers are managed and blended.
As women enter this stage of life, it’s critical to understand and navigate risk and vulnerabilities. For example, if you scale back your career and work, how will this affect your financial future if the relationship were to dissolve? Additionally, more women are becoming the primary breadwinner, which is fabulous. In this arrangement, do you have a partner who is well-equipped and willing to bear more responsibilities with children and household chores, providing you with extra bandwidth to lean into your career? These conversations can be hard to initiate, but have them now and continuing to have them often is imperative.
However we choose to navigate in our partnership, it’s important to assess the sacrifices and trade-offs at every step and plan accordingly. If you are home fulltime with children, it’s important to have a back-up plan if something were to affect your primary source of income. Continuing to invest in our own financial education and resilience is key.
Divorce or Widowhood
As women, if we suddenly find ourselves single due to divorce or widowhood, diving into a financial assessment may feel daunting. The sudden shift from shared financial responsibilities to managing everything alone can feel isolating. Women experiencing this kind of challenging transition are bolstered by a strong financial advisory relationship, one that can help balance the reality of difficult emotions (and energy drain) with practical decisions to protect your long-term financial security. That support allows for an outside perspective and the security that someone has your back.
Planning for Retirement
Because many women take career breaks or work part-time to manage caregiving responsibilities for children or aging parents, studies show women tend to have lower lifetime earnings with less retirement savings. And, if women often live longer than men, women actually need more retirement savings, not less. Whether you’re 20 or 50, the time to do retirement planning is now.
A friend (and female Judge) likes to say: A Man is Not a Plan. It’s important at every age and stage to assess your progress toward a bright, secure and quality retirement enjoying what should be your golden years.
Estate Planning
Many women, especially those who have not been the primary financial decision-makers, might feel intimidated by the complexity of estate planning, don’t have time, or need help determining where to start. Just like with other areas of financial planning, societal norms often place the burden of caregiving on women, leading them to focus on daily responsibilities rather than charting a long-term vision with an actionable plan.
The exercise of estate planning is about your legacy and the family and charities you may want to benefit after-life. Embracing education and engaging in open discussions with family members about end-of-life wishes and estate plans can deepen relationships, clarify intentions and family values and minimize misunderstandings (and messes) for the people (and projects) you care about most. And let’s not forget about the potential tax minimization of proper estate planning.
To Conclude
As women, we bring incredible value into the world to benefit our families, our businesses and our communities. As essential workers of our lives, we navigate daily responsibilities and decisions, but we must take the time to assess and implement the long vision and plan, and educate ourselves and surround ourselves with people who help us perform at a higher level. When our daily decisions line up with the framework of our long-term plan, magic happens.
Investment Advisory services offered through Equita Financial Network, Inc., an Investment Adviser with the U.S. Securities and Exchange Commission. Equita Financial Network also markets investment advisory services under the name AegleWealth. The foregoing content reflects our opinions and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.