Women and wealth: 5 ways women can take control of their financial lives 

Eight of 10 women in the US will be solely responsible for managing their finances at some point in their lifetimes and 59% of women currently are responsible for making financial decisions in their household. Yet 53% of women are not actively investing.*

In light of these statistics, we outline five ways women can become inspired and empowered to confront the financial challenges in their lives and take a holistic view of their wealth.

1. Ask questions freely

When it comes to your finances, there’s no such thing as the wrong question. Building a strong relationship with a trusted financial advisor is a good first step toward outlining a plan to reach your financial goals. A relationship that makes you feel comfortable asking for help is essential, whether you need help understanding the investments in your portfolio or have questions about how to set up your estate plan. If you don’t feel comfortable asking your advisor to explain something, it’s probably time to find another advisor—one who listens, understands your point of view, and encourages you to ask all kinds of questions without feeling intimidated.

2. Plan for life changes

When life takes a turn, such as losing a spouse or facing the possibility of a divorce, having a plan to fall back on can be comforting and reassuring, and provides clarity in a time of confusion and grief. Likewise, it is just as important to start planning for joyous events as early as possible. If you are getting married, for example, drafting a detailed financial plan will help clear up any confusion that might arise about the goals you want to achieve, both individually and together, the way you think and feel about money, and the assets each of you brought into the relationship.  

3. Broaden your perception of risk

In the world of investing, risk is basically defined as anything that contributes to the possibility of losing money. But women who take a more holistic view of their financial lives understand that risk can materialize in a number of other ways. For example, if you aren’t clear why your portfolio holds certain investments, you are not aware of your cash flow or you haven’t revisited who you have named as beneficiaries of your accounts, your goals and financial future could be at risk. An experienced wealth advisor can help you identify potential threats to your wealth that extend beyond your investment portfolio.

4. Understand what you own

Even in the most affluent households, women often worry about running out of money later in life. But in many cases, this concern is unwarranted. Their concern comes from not knowing the total value of their possessions, how their wealth is held (in cash, securities, real estate, trusts, etc.), or how long their wealth might allow them to live comfortably. It may be helpful to consolidate your assets with one provider so you may see all your wealth in one view, all in one place. Locate the deeds and titles to your physical property, such as real estate and artwork, to understand the legal ownership and value.

5. Join the conversation

In some cases, women are reluctant to participate in financial discussions because the responsibility may feel overwhelming, especially when their estates are complex. Or they are concerned about shaking up family dynamics by taking on a new and unfamiliar role. But knowledge of your financial situation is critical to increase your confidence in your financial future. With this knowledge, you can make better-informed decisions about your wealth.

 

* What Is the State of Women & Money in 2024? (yahoo finance)