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September 18, 2023

Six steps for women to improve their future financial state

Personal Finance Women

Content sponsored by BMT-Native-091823-WomenFuture

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The world has changed, and so have our households. Life spans are longer – particularly for women – and many families now live off two incomes.

Today, women have reached the pinnacle of success from corporate executives to business owners to entrepreneurs. Now more than ever, they are in a better position to achieve financial security for themselves and their families. That means becoming more involved in their financial plan and taking an active role in their investment savings.

Here are six steps women can take to improve their current financial state and to adequately prepare for their future:

1. Do some research and educate yourself

It’s important that women find financial empowerment and success alongside their spouses. The first step to achieving that is simply setting aside time to research and find out what is right for you and your family. Are you starting from scratch, or do you just need to brush up on some things? Start with the basics, such as magazines, books, podcasts, and other online resources. Also, seek help through your retirement plan at work, as many plans provide educational materials and assistance. You don’t have to do it all at once but don’t put it off. First, figure out what your knowledge of the topic is and what you need to know to move forward.

2. Give yourself a financial overview

To create a successful plan, you need to be aware of what your current finances look like. See where you are right now, what your situation is, and figure out your short- and long-term goals. Review everything available to you – all your finances, how much you have in income, debt, living expenses, planned savings, after-tax savings, etc.

3. Take advantage of available resources available

After completing your financial review, you should understand the types of vehicles you are invested in and which ones to consider. If you and your spouse are still working, how much are you saving? Are you taking full advantage of your tax-deferred deduction through your employer plan? Does your company provide a contribution match and are you taking advantage it? What are your current investments? Are they appropriate for your risk tolerance and your financial goals? Additionally, you might want to consider speaking to a tax advisor to make sure you’re taking advantage of applicable tax deductions and/or tax credits.

4. Have a conversation

This step is often the most difficult for women, but don’t be afraid of it. Take a vested interest in your family’s finances. I hear women saying they don’t have the time, but if you don’t get up to speed on your financial state by discussing it in-depth with your spouse, you could end up paying for it – literally – later down the road.

You are not alone. Others have the same questions and investment concerns. It is okay to talk with friends who may have similar questions but do your own research and seek out professional advice. Don’t act solely on the hearsay of others.

5. Plan for the long-term

It’s easy to plan for the short term because you’ll be rewarded sooner. However, everybody should have long-term goals. Someday you would like to retire, but to get there you need to make decisions to achieve that goal. Figure out what you would like your retirement to look like and whether you’re on track to fund that lifestyle.

Many employer-sponsored retirement plans have built-in savings calculators that can tell you whether you’ve saved enough for estimated expenses, or if you haven’t, how much you need to save. Determine what you can expect from future Social Security and Medicare benefits and factor in the cost of health care and long-term care. Create a financial plan and then begin to work through the steps of your plan.

6. Consider help from a financial professional

Women are the key to their own financial futures, and to help make financial decisions they need to become educated and informed. The world of financial planning isn’t always easy or convenient. In many cases, women can benefit greatly from working with a professional who can help them understand options and implement plans designed to provide financially secure lives. Don’t delay – you’ll thank yourself later!

About the Author — Ellen T. Jordan, CFP®

Ellen is an investment advisor providing comprehensive financial planning services to clients of Bryn Mawr Trust. She works collaboratively with all divisions of the Bank to ensure that each client’s financial needs are fully addressed and met. Ellen is a CERTIFIED FINANCIAL PLANNER™ professional.

This communication is provided by Bryn Mawr Trust for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. No portion of this commentary is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in this report is derived from sources that Bryn Mawr Trust believes to be reliable; however, Bryn Mawr Trust does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.