Women are the next wave of wealth transfer – by 2030 we will control an estimated $30 Trillion in assets. According to a Merrill Lynch study, 3 out of 5 women are not confident when it comes to investing and working with the right advisor can educate and empower you to build that confidence.
Why is it important to be educated and empowered? Women tend to outlive men by an average of five years which lead to the need to save more for retirement, so we do not run out of money. This tends to be a challenge even in 2021 as women still only earn on average $0.82 for every $1 a man makes. Not only do we need to save more for a longer period, but we also need to use a greater percentage of our pay to do so. A Fidelity study states when women are educated and invest, they earn on average 40 basis points more than men and add a greater amount to their account balance. Seventy percent of people will have a long-term event in their life; and if not properly planned for, it can wipe out of lifetime’s worth of savings in a flash.
These reasons are why a financial advisor is more important to the health of your financial plan. The right advisor will work with you holistically at all aspects of your financial health, cash flow, debt management, asset protection, asset accumulation and finally estate planning. She’ll educate you one the different areas to make sure you understand the recommendations and find a solution that will not only help you achieve your financial goals but will feel comfortable when it comes to risk. Proper planning also help you leverage your money to save taxes, not pay more. Lastly, an advisor will help you in times of market volatility and help you take emotion out of the equation and help you stay the course. Think of it this way, would you leave cutting your hair yourself or to a professional? Not working with an advisor is equivalent to a bad haircut, except to recover is years, not weeks.
About Your Columnist
Michele Farrell is a featured columnist for Women Lead, the official blog of Connected Women of Influence, where she covers all things to educate and empower women in the financial arena. Her family was struck by the lack of financial education out there and Michele took matters into her own hands by becoming an advisor seven years ago and won the Los Angeles Tribune’s Financial of the Year in 2020