Financial tips for women over 50

According to a recent Morgan Stanley study, by 2030, women will contain more than $30 trillion in financial assets, so we can have an apparent magnitude of this number. According to Wikipedia, during the year 2022 in the United States, some $25 trillion was produced in its economy.

This is one of the most effective wealth transfer processes in history, and the fundamental cause is that women live, on average, longer than men.

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Women over 50 will control the capital of the world.

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According to the National Center for Health Statistics in the United States, the difference between the life expectancy; of women and men is that they live on average almost six years longer than men.

There is no doubt that the financial world will have to be configured differently; Since, unfortunately, CEO positions are still primarily held by men, Although this number is improving. Fortune notes that for the first time in history, With more than 10% of the 500 largest companies in the USA run by women, there is still a long way to go.

There is also a long way to go regarding how much women versus men earn in their jobs. For example, the U.S. Government Accountability Office; points out that for every dollar a man earns, the woman makes 82 cents on average. The case is worse for Hispanics or Latinas, where this value is 58 cents.

But the good news is that while it looks like this wage differential will take a long time to change, The report we pointed out from Morgan Stanley tells us that in just ten years, women will control 20 trillion dollars in financial assets.

Having said all this, the big question is what women should do to prepare for this new responsibility.

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1.- It will not be something optional; it will simply happen

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Some women may say, “I really don’t want to have this responsibility, and I’d rather my partner continue to manage the family’s investments,”; but when we see the statistics of life expectancy, It will simply happen that you have to do it because your partner in the future will not be able to.

And the least you want is to start trying to understand that financial world; when your partner is not with you and you have no one to ask.

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2.- How good are your financial knowledge?

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While it is true that women today essentially manage the family budget, according to the U.S. Bureau of Labor Statistics, when conducting tests to determine knowledge in personal finance, men, on average, obtained better results than women.

This post shows that to the extent that you feel less confident about your knowledge of personal finance issues, the more you get away from matters such as investments in the stock market, retirement planning, financial costs, and other factors.

Now, particularly at the moment in which we are living, there are not many excuses anymore; Since the birth of Finfluencers, there has been a lot of personal finance material on social networks. So where you can go to continue improving your knowledge, but you must be very careful because just as there is good advice, some people do not know what they are saying. But because they do it in a fun way, they can have a large fan base.

Always remember to look for quality over just fun in financial education.

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3.- Women are better at managing their finances than they think

A study conducted by Stanford University focuses; on the importance of women feeling confident in managing finances; and much more when they pass 50 years.

This study shows that there are two types of financial decisions:

• The routine ones: how to pay the credit card, buy the home market, manage the family budget, and buy things without high value.
• Those with high impact: a retirement plan, investments, a mortgage, etc.

Showing us that women feel confident in routine decisions rather than high-impact ones.

Since we are talking about trust, It is imperative to point out the results of the study carried out by Fidelity Investments called: the 2021 Women and Investing Study, which shows us that:

“A new analysis of more than 5 million Fidelity customers over the past ten years reveals that, on average, women outperformed their male counterparts by 0.4%.”

So the evidence shows us that women are better than men when it comes to investing, but the study shows that only 1/3 of the women consulted see themselves as investors.

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4.- Many women recognize the importance of seeking the expert help

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If we look at proportions, more men think they should manage their finances themselves instead of relying on a specialist.

Men carry this conduct in their DNA; Many of you will remember when there was no Google Maps, and we had to use paper maps or ask for directions. The parameter that was repeated the most is that many men did not want to ask because they knew how to get there, and after getting lost for a long time, they asked.

On the other hand, this same study by Fidelity Investments shows that 77% of women would have more confidence if they had a financial advisor; and 71% say that after having a written Financial Plan, they feel calmer. We recommend reading our blog about whether I should have a Financial Planner or do it alone.

In conclusion, we can ratify the importance of approaching the world of investments, but always do it:

• In a diversified way and not fall for the fantasy of quick wealth
• With a long-term vision, uniting your investments with your long-term goals, such as retirement
• Do it consistently over time, making contributions without seeing so much what the news says, and you must understand that the moments of the low market are opportunities for the future.

In particular, you should rely on the fact that the vast majority of women understand the importance of relying on specialists. They know it is unnecessary to be a specialist in every financial, legal, tax, or accounting matter.

Because we celebrate Women’s History Month, you will find financial advice in this article, especially for women over 50.

Alonso Rodríguez Segarra

Founder & CEO Advise Financial

advise-financial.com

Alonso is a “CERTIFIED FINANCIAL PLANNER™” who is dedicated to increasing the Financial Well-being of nurses, physicians and successful immigrants in Florida and Texas. With more than 20 years of experience in the world of finance, always working for the best interest of his clients, under fiduciary criteria.