Women generally have a long list of to-dos that can feel never ending. More often than not, last on the list is “take care of myself.” The repercussions of that oversight can be damaging when it comes time to retire.
Take a look at what happened last month and what’s ahead in the market and economic environment. Check out the latest Month in Review.
While markets reversed their downward trend for the month, inflation did not reverse its grind higher with CPI hitting the highest level in more than 40 years. As the inflation keeps climbing and the Fed has raised rates to combat this, labor markets have begun to show signs of loosening with jobless claims ebbing up. Check out the latest Month in Review.
The most common mistake in a rising rate environment is when investors let emotion control their decision-making and lose sight of the long term. Our Scott Duba dives into how investors can avoid common mistakes in a Q&A on our blog. Check it out!
Knowing that women are poised for success in their business ventures, but potentially facing obstacles to their goals, we wanted to lay out some of the fundamental considerations that are within an entrepreneur’s control. Here are the five things every female entrepreneur needs to know now.
With inflation at multi-decade highs and inflation expectations inching up, the Fed has reprioritized its focus from supporting growth to quickly taming inflation. The Fed has stated (unequivocally, to our ears) that they would gladly risk a recession now via restrictive policy to avoid the bigger risk of higher and more entrenched inflation later. This is the right long-term policy, but means that economic growth will slow in the near term.
Many women today find that they are in charge of their financial lives either by choice or by chance. Over the next two generations, women will inherit an astounding 70 percent of the money in this country. When asked the question “Do you feel financially secure?” a high percentage of women answer with a resounding “no”. This is gravely concerning to us as financial advisors. Even though women’s financial power is growing, too many of us are still leaving the financial decision making to others.
By allowing our spouse or partner to take the lead on financial matters, we may effectively reduce or even eliminate our own knowledge of money and finances. This could economically crippling in the event of a divorce or death. Does this describe you?
Lessons from our Parents.
Many young women grow up getting advice about how to dress and who to date, but few of us get financial education from our parents. However, you may have learned more than you think, simply by observation.
If you saw your parents struggle with spending and debt, you may find yourself walking the same road. If your parents were lifelong savers who had a habit of living within their means, your attitude toward money may be wholly different. Watching as they amassed wealth for the future over time may have created a good and realistic model for a healthy retirement savings.
You may have grown up with very little understanding of the way investment markets or retirement plans work, but the more you educate yourself in financial topics, the more confident and assertive you will become regarding money decisions.
Don’t Set it and Forget it.
A recent study found that while women participate in employer-sponsored retirement plans more often than men, only 43 percent of women had an emergency fund and only about a quarter bothered to rebalance their investment portfolios with time. You are off to a great start by participating in your employer-sponsored retirement plan; however, it’s equally important to regularly review how your portfolios are allocated to align with your retirement goals.
Knowledge is Power.
When you acquire more financial knowledge, you can shatter money myths that may have crept into your life and replace them with money truths. You can see your financial behavior in a new light and adjust that behavior to give yourself a better chance at amassing significant retirement savings and lifetime wealth.
What steps can you take today toward financial security?
- Talk with a financial professional who recognizes some of the common mistakes female investors make and who will counter them with wise approaches to saving and building wealth for retirement.
- Don’t be afraid to “pay yourself first” in your employer’s retirement plan.
The experts from Prime Capital Investment Advisors and Qualified Plan Advisors came together to present their quarterly webinar intended to help retirement plan participants and individual investors make sense of the market and economic news.
With the Fed attempting to reign in overheating inflation via increasing interest rates, consumers begin to feel the pressure of the tightening financial conditions. The University of Michigan’s Consumer Sentiment Survey reached its lowest level in history. Check out the latest Month in Review.
As the month went on, the volatility continued, but risk assets went on a final run towards the end of the month with almost all asset classes ending in the green for May. Check out the latest Month in Review.