Women are more financially independent than ever, but how do we know if we're making the right decisions when it comes to our finances? Sharon Taylor, Financial Planner for Magus Wealth, joins the 2to3days panel of experts to help you get your finances in shape.
There are more financially independent women in the world than ever before, whilst this is encouraging, it’s about making the right decisions when it comes to your finances.
According to one report, private wealth held by women grew from $34 trillion in 2010 to $51 trillion five years later. That trend looks set to continue, with women expected to hold $72 trillion by 2020 - a 32% share of total private wealth.
As Financial Planners we’re well aware of this change and we’re working with women from all different backgrounds, helping them to put financial plans in place for them and their families. From career women in executive roles, to working mums trying to balance their careers with family life, to suddenly single women coming into large sums of money through divorce or widowhood.
As with all financial planning, a lot of what we’re talking to our female clients about is what might happen, and what will happen, in the future. According to research by AARP, two-thirds of women will have experienced a major financial event or transition between the ages of 40-79. These transitions can range from getting married, divorced or being widowed, getting a new job, retiring or being made redundant. Plus, sending your child/ren to university, buying a first car or helping them on to the property ladder can all be costly activities.
These transitions happen to men as well as women, but data shows that women are outliving men and a staggering 99% of women will be solely financially responsible for themselves and their families at some point in life, with 75% of women in male-female relationships being widowed by an average age of 56.
Women now engage with financial decisions affecting them. 76% of boomer generation women have a financial plan, while 50% of millennial women consider themselves more financially literate than their partners. So, not only are women more financially independent than ever, we’re also more financially literate than ever before, too.
So, as Destiny’s Child sang, ‘I buy my own diamonds and I buy my own rings’, and woman are in more control of their finances now – but back to my point about making the right choices.
At Magus it’s about helping people make the right choices for their financial futures, with the aim of transforming the financial planning conversation - it’s as much about financial and investment coaching as it is providing a more traditional financial planning service.
We see our role, as Financial Planners, as helping to take the fear out of managing money, helping people to take control as they go through the various life transitions that will need to be inevitably faced - a modern approach built on real life experience.
We hope you enjoyed our thoughts on this – we’re going to be writing a series of blogs looking at various subjects including getting financial advice, key life stages and why it’s important to have a vision for later life, so watch this space!
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