Women must take an active role in securing their financial futures

Women must take an active role in securing their financial futures

Today, women are more financially successful and independent than ever before. For example:

  • · There are more than 10 million female-owned firms in the United States, which generate more than $1.9 trillion in annual sales and employ 12.8 million people nationwide, according to a study conducted by the Center for Women’s Business Research in September 2006.
  • · Women also are starting new companies at twice the rate of all U.S. firms, according to the study.

While more women today are making great strides in the workplace, many still leave money management to men or ignore it altogether. As a result, far too many women never take charge of their financial futures – and the results could be devastating.

 

Why women’s financial needs are different
While the general principles of managing money are universal, women face unique challenges that amount to different financial needs. Women, in particular, would be wise to plan ahead financially. Consider the following statistics:

  • · Women live longer than men by an average of 5.3 years so they need more money for retirement.1
  • · Statistically, women earn 76 cents on the dollar compared to men and the gap widens with age.2
  • · Women are more likely to work part-time and have shorter work tenures due to raising children or caring for aging parents, which results in smaller Social Security payouts and pension accumulations.3
  • In addition, women are more at risk to be at a financial disadvantage on several fronts when their spouses die. For example:
    • · One-third of women between the ages of 65 and 74 are classified as widows.4
    • · The percentage of women classified as widows over age 75 nearly doubles to 61 percent.5
    • · Almost one in four women are broke within two months of a husband’s passing away, and a staggering 87 percent of the poverty stricken elderly are women.6
  • The statistics are startling, but by taking steps now you can get involved and take control of your financial future. Here are some basic strategies to jumpstart the process:
    • · Consult with a financial professional. Start now and schedule an appointment with a Northwestern Mutual Financial Network representative who will help you identify your needs, define your goals and make key financial decisions.
    • · Develop a will. If you’re married and don’t have a will, put one together. This process will help you and your husband to think through and solidify financial and personal matters. Again, consider working with a Northwestern Mutual Financial Network representative, as well as an attorney, to develop your will.
    • · Know what you have. If you’re married and your spouse is the financial decision maker in the family, make sure you familiarize yourself with all of your and your spouse’s assets. Learn about your bank accounts, retirement accounts, tax returns, insurance coverage and life insurance policies.
    • · Keep an orderly, easy-to-access system. Store important documents and paperwork in a safe deposit box, locked file cabinet or other secure place that is easy to access. Make sure these materials are updated regularly.
  • By making upfront planning a priority, you will not only avoid future financial disaster, you also can be actively involved in taking steps to make your – and your families’ – financial dreams a reality.

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