Let’s talk about women and money. From what I’ve seen, women tend to have some pretty awesome superpowers when it comes to building wealth – but they also face some unique challenges too. Some of those challenges include:

1. Pay Gap: On average, women still earn less than men for the same work. The gender pay gap can make it harder for women to accumulate savings and investments over their careers.
2. Career Breaks: Women are more likely to take breaks from paid work to care for children or other family members. These gaps can lead to lower lifetime earnings and less ability to contribute to retirement accounts.
3. Longer Life Expectancy: Women generally live longer than men, so they need their retirement savings to last longer. This puts extra strain on having an adequate nest egg.
4. Investing Attitudes: Research shows that women tend to be more risk-averse investors than men. While this can lead to more conservative portfolios, it may also mean missing out on higher growth opportunities.
5. Financial Literacy: Overall, women report lower confidence and knowledge about financial matters like investing, insurance, estate planning, etc., which can put them at a disadvantage. (Don’t worry—it’s our mission here at Wright Wealth to change this!)
6. Widowhood: Women have a higher risk of being widowed and having to take over managing household finances later in life when their spouse passes away.
   

While broad generalizations can be problematic, awareness of potential headwinds can help women plan and invest confidently. Let’s explore how!

Money Tips for Everyone

Look, there are some basic financial best practices that apply to anyone trying to secure their financial future:

• Setting clear goals and timelines, with a real plan to achieve them
• Building a low-cost, diversified investment portfolio that fits your plan
• Sticking to that plan and portfolio, ignoring distractions
• Getting professional wealth management help when needed for risks, legacy, etc.

I also want to be upfront that generalizing about any group – whether women, men, or others – is tricky since we’re all unique individuals. But if we’re thoughtful about it, we can acknowledge some of the common experiences many women share regarding money.

Living Longer Means Planning Longer

One of the first things to consider is lifespan. The data shows women typically outlive men by a few years on average. A 50-year-old woman today can expect to live to around 82 or 83, versus 79 for a man the same age.

Now, your specific situation may be different based on your relationship status, age gaps, genetics, health, lifestyle, etc. But if you’re a woman who is more likely to be the last one standing in your household, you’ll want to plan for those extra years of expenses.

The Juggling Act

For many women, another wealth challenge is the juggling act between career, kids, household duties, caring for family, etc. Research suggests women still take on more responsibilities, which can lead to employment gaps or lower-earning roles.

Again, this obviously doesn’t apply to everyone. And hopefully those gender imbalances keep fading over time. But traditionally, women’s extraordinary multitasking abilities have also meant fewer wealth-building opportunities.

Building Your Financial Muscle

So whether by choice, expectations, or societal biases, if you find yourself the lower-earner in your household, you’ll want to put in some extra financial planning effort to protect your stake in that shared wealth:

• Get in the know about the big picture – total assets/debts, financial accounts, advisors etc. Don’t be kept out of the loop!
• Make sure retirement plans factor in your longer lifespan and higher potential health costs.
• With pensions or Social Security, look at maximizing any spousal/survivor benefits.
• Review beneficiary designations, wills, etc. – no outdated info leaving you at risk!

And single ladies, all this applies double for you since you’re managing that wealth solo.

Thinking Differently About Money

There’s also some fascinating research on how men’s and women’s brains differ in their neural wiring and cognitive processing styles. The general idea is that women tend to take a broader, more holistic perspective while men are more focused.

From my perspective as a financial advisor, those differences mean we must be attuned to eacclient’s unique communication style and needs. So ladies, you’ve encountered advisors treating you like a bystander in your own financial life – cut them loose! You deserve an advisor who makes you feel engaged, heard, and in control of your wealth. Don’t let anyone diminish your voice or relegate you to a supporting role.

Money is deeply personal, and we all come to it with our own experiences and perspectives, shaping how we think and feel about it. But I firmly believe that by acknowledging our individual talents and being advocates for ourselves, we can all find empowerment in managing our finances.

If you’d like an advisor who gets that and can be a true partner, I’m all ears. Reach out anytime, and let’s start that conversation.

Information is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products, or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this post (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of Angela Wright, an Investment Adviser Representative of Gemmer Asset Management LLC“(“G”M”) and should not be regarded as the views of GAM, or a description of advisory services provided by GAM or performance returns of any GAM client. References to securities or market-related performance data are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see disclosure information: https://www.getwrightwealth.com/disclosure/.