5 Reasons Women Should Get a Financial Advisor Now
Women have a ton of financial responsibility. They’re building businesses, navigating career breaks and managing households. Yet, many are not seeking financial advice along the way — and that could cost them.
“Whether it is through career changes, home purchases, retirement planning or other significant life events, a financial advisor helps women with smarter strategies,” explained Lyndee Bennett, communications advisor and manager at University Federal Credit Union. “Not that we don’t make smart strategies or decisions, but often our financial decisions are heavily influenced by people around us like our husband or partner, for example.”
For many women, acquiring a financial advisor could be one of the smartest investments in their future. Here are five reasons women should not delay getting a financial advisor.
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1. Women Who Are Having Children Can Financially Prepare
Women who plan to have children may choose to temporarily leave their jobs — which means their career, salary and retirement benefits will generally take a hit. Lisa Clements, founder of Clear Springs Wealth, said financial advisors help women proactively plan to take time off to raise children (if they choose to do so) so their financial and professional lives don’t suffer. For instance, financial advisors model how much income is needed to cover expenses while women step away from the workforce. They can also help women increase retirement contributions while still working and guide women in finding part-time work so their career advancement is less impacted by large gaps in their resumes.
2. Women Live Longer Than Men
Many women tend to defer to their spouse when it comes to financial matters. But, because women often live longer than men, Jeffrey Massey, certified financial planner (CFP) at Massey and Associates, emphasized the importance of women knowing where their money is and understanding their household’s complete financial plan. A financial advisor will help women create a plan that’s right for them based on their comfort level with risk. Additionally, financial advisors can assist with tax efficiency and smart withdrawals to ensure retirement funds last longer and adequately cover healthcare and long-term care costs.
3. Early Advice Increases Net Worth
According to Cyrus Kennedy, CEO of The Ad Firm, individuals who receive financial advice early can build an additional 20% in assets over a 10-year period. Most people cannot commit to analyzing the stock market 10 hours a week; this is where advisors can step in and help guide your portfolio. Further, financial advisors provide regular financial checkups to review goals, keep savings on track and ensure priorities evolve as your circumstances change. Many people don’t even know what they don’t know when it comes to making their money work for them — and that’s where a financial advisor can be worth their weight in salt.
4. Financial Advisors Can Save Relationships From Emotional Strain
There’s nothing more charged than financial conversations — which is why most couples avoid them altogether. Instead, Kennedy advocated for adding an objective third party. Not only will financial advisors manage the numbers, they’ll remove the emotional weight of your decisions so you and your partner can focus on facts instead of feelings — therefore sparing the relationship. Overall, outsourcing the emotional stress of finances can be a welcomed relief.
5. Financial Advisors Can Women Can Improve Their Confidence Around Money
According to Hayley Dickson, founder and wealth management advisor at RIPPL Wealth Management, women may not always be taught what to do with money once they earn it and this could impact their confidence when it comes to financial matters. For women, financial advisors can, therefore, help eliminate beliefs that “they don’t have enough, they don’t make enough, they don’t know enough, they don’t have the time, the bandwidth or that they’re not a good numbers person,” Dickson said. Financial advisors will impart enough knowledge and empowerment to ensure women have all the information they need to make informed financial decisions.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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