Monthly News, Office Updates, & Stories from Home
Having been raised primarily by my mother, I’ve witnessed the many challenges that women can face when planning their finances. Whether it’s raising a child and working full time (or multiple jobs), coping with financial distress after a divorce, earning less than their male counter parts, or planning for a longer retirement, women often find themselves playing catch-up. This month, I discuss the importance of women getting an early start on retirement planning.
Women & Retirement Planning
Although equal pay has been the law since 1963, women are still paid less than men – even with similar education, skills, and experience. The National Women’s Law Center estimates that women are paid only 80 cents for every dollar a man was paid(1). Economist Evelyn Murphy, president and founder of The WAGE Project, believes the wage gap costs the average full-time U.S. woman worker between $700,000 and $2 million over the course of her work life(2). Worse yet, this doesn’t factor in reduced pension and Social Security benefits during retirement.
Retirement is one area where you really need to be first in line. Because many women will spend upwards of 25 years in retirement,(3) it’s important to attain the retirement lifestyle you envision and that you’ve worked so hard to achieve. It’s also crucial to ensure your income will last throughout your years in retirement.
In my practice, I’ve found that women tend to be more engaged in their finances. Women tend to ask more frequent and better questions than men. They’re also more likely to take notes. The flip side of this is that many of the women with whom I work seemed to start with less financial knowledge than their male counterparts. Getting over the fear of meeting with someone seems to be one of the largest hurdles that women face when looking to start working with an advisor. This fear often causes a delay in seeking financial advice.
As you can see, it is crucial that you act as soon as possible to prepare yourself for the future. You’re likely to have lived a life full of challenges and risen to the occasion to overcome those obstacles. When it comes time to prepare yourself for your years after work, make sure you once again rise to the occasion.
This article is for informational purposes only and is not intended to provide specific advice to any individual. Consult your legal, tax, and/or financial advisor to determine what is appropriate for your situation.
(2) Statistics provided by the Older Women’s League at www.owl-national.org and the National Committee on Pay Equity, 2008.
(3) U.S. Department of Health and Human Services: Center for Disease Control and Prevention (CDC): Health, United States 2008; Table 26: Life expectancy at birth, at 65 and 75 years of age by race and sex.
The opinions voiced in this material are for informational purposes only and are not intended to provide specific advice to any individual. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
Events & Sponsorships
7th Annual Shred Day
Saturday, April 21st between 10am & 12pm
Come out and get your personal documents shredded. Also, it’s Earth Day, so you’ll feel good for doing your part by recycling your old, paper documents. See the picture above for more information.
Maryland Women’s Law Center Wine & Chocolate
Wednesday, April 25th between 6 & 8pm
It’s our 4th year being the lead sponsor for this great event. Join us for Wine & Chocolate to support justice, fairness, and equality for women at their sweetest event of the year. Featuring Baltimore signature chocolates, wine pairings, silent auction, and 50/50 raffle. For more information: Wine & Chocolate
Friday, April 6th
Debbie will be out of the office.
Friday, April 13th
Woody will be out of the office.
Just a Reminder
We are always accepting donations for the local animal shelters – toys, tennis balls, collars, leashes, food, cat litter, cardboard trays, office supplies, cleaning supplies, towels, mats, washcloths, etc. We will accept donations Monday-Friday between 9am & 5pm.
Finally…snow! I was getting worried that my foresight of buying a sled in the Fall before they were all sold out was going to backfire on me. While we didn’t get enough snow for Elise to go sledding all Winter, Mother Nature delivered us a snow storm to kick off Spring.
Elise enjoyed downhill sledding, snowball fighting, and building a snow house. Her favorite part of the day was sled dragging. She tested my conditioning as she screamed for me to go faster while I dragged her through the snow-covered grass. Being the generous and thoughtful girl she is, she also took a turn on the reins and gave us slide rides of our own.
Fenway and Roxy love snow too. We took a walk through the park by the office. The dogs had fun running through the snow and playing fetch with snowballs. Fenway loves catching and eating them while Roxy likes to chase them and growl as though she’s hunting a wild animal. They’re too cute!
I hope you enjoyed this month’s newsletter.
Woody Derricks, CFP®, ADPA®
CA Insurance License #0C40217