Financial Planning for Women: The Best Tips for Success

Financial Planning for Women: The Best Tips for Success

Financial Planning for Women: The Best Tips for Success

When it comes to the big earners — those earning more than $1 million a year — women now take the cake over men. Yes, women out-earn men in that category! Also, the millionaire club is getting a huge bump in female members. Between 2009 and 2016, membership grew from 6,597 to 17,609. That's a jump of 11,032! Financial planning for women is increasingly becoming important because it ensures that their wealth is invested wisely and keeps working for their families into the future. 

These smart and successful women at the top and those on the way up know the value of having a plan, sticking to it, and adjusting it as needed to get where they're going to build their wealth. 

Let's take a look at some professional tips for financial success. Keep reading to learn what it takes to keep your wealth where it should be now and tomorrow to give you the lifestyle and security you want and deserve. 

Then, reach out to a top financial advisor to help you make sure you're on track!

Lean Into Evidence-Based Investing

lean into financial planning for women
Photographer: meriç tuna | Source: Unsplash

You get the basic idea of investing: Buy high and sell low. But it's a good idea to get as much information from the available research as possible to increase your chance of success. 

Evidence-based investing is based on solid research and not gut feelings or hunches. This approach to investing leans heavily into an academic inquiry of what factors actually add value to the investment process.  Armed with the facts you can create a strategy with a high probability of success. 

By having a well-defined strategy you can lean on during periods of market volitility you will be more likely to be successful. The key is getting your strategy defined and understanding the proper level of risk to undertake given your unique situation. That's where it helps to have a seasoned wealth advisor that knows exactly what to look for and what best to consider for your evidence-based strategy

Take Planned Risks to Grow Your Money

Planned risk taking is a key aspect of growing your financial plan
Photographer: Sammie Vasquez | Source: Unsplash

Some women tend to be risk-averse in hopes of building security, but the right amount of risk, when managed correctly, can actually build your security by building wealth. It's a long-term strategy and involves a few elements like diversification and staying committed to your well-defined strategy no matter how you feel at any given moment. 

It's key to diversify broadly. In fact, when you do this, the total of your overall risk tends to be lower than the risk of the individual investments. This is how you create an optimized portfolio.

To do this, your strategy is made up of a portfolio of investments that cover specific market segments. Within those segments, you then invest in a plethora of individual securities to spread your risk.

For example, some securities are more reliable but earn you less. Assets may include investments with companies that are small or large. They may include businesses that are established or those on the rise and growing or both. They may involve fixed income investments which are typically the most stable of all.

To feel safe, you must be sure to take the right amount of risk based on where you are in your life and wealth-building timeline.

Then over time you can watch your wealth grow — which is the fun part of investing!

Plan for the Long Term With Great Detail

women long term financial planning
Photographer: Jon Tyson | Source: Unsplash

Your financial strategy is based on all the evidence and the market but it's also based on where you are in your life.

When you're younger and earning high, it's generally the time to take on more risk in investments. Later in life and as you enter retirement, you take on less risk and lean more heavily into the wealth you've built. 

This balance is key in your wealth strategy and takes into consideration the way you want to live and tap into your wealth at all stages of life. It considers your family as well and what you want to pass to them and the community. It considers your lifestyle now and in the future.

When you sit down with your professional financial planner, be sure to go into detail on your lifestyle and exactly what you want for the future. A good advisor will ask you all the right questions to cover these important areas. Think hard and be honest. Talk to your family too to understand what they want and need. 

Treat Your Wealth With Respect With a Proven Financial Advisor

Photographer: Vita Vilcina | Source: Unsplash

Your time is priceless! Don't spend it trying to learn all the ins and outs of successful financial planning. Leave that to the professionals so you don't have to reinvent the wheel. Unless you want to, of course, and start your own financial planning business! The sky's the limit, right?

But assuming being a professional wealth advisor is not in your future, hiring a financial advisor should be.

Find one you can trust and lean into for all the heavy lifting of managing your wealth and creating a tight plan for wealth growth and future security. 

Find a Fee-Only financial advisor that will honor their fiduciary responsibility and put your financial interests first.

A Fee-Only advisor discloses all costs, gets rid of unneeded costs, and is transparent and informative so you know exactly what's going on.

Use your female intuition! Don't shy away from details and being informed because you don't want to think about it.

Go with an advisor that lays it all out for you–advice, options and all — and answers all your questions. From there, you can decide to go with their advice or ask for another option. 

It's your prerogative to change your mind and be informed!

Financial Planning for Women and Your Wealth

Now that you're privy to some of the top tips when it comes to financial planning for women, you're ready to put your money and future on the right path.

To start, find your ideal financial and wealth advisor– someone with a great track record that you trust. Your professional will ensure you have an ironclad plan for your wealth and investments so that you can focus your energy on what you do best — earning and living your fabulous life!

Please feel free to give us a call with any questions and to get started. We're here to advise and guide!

About the Author Doug Finley

Douglas Finley, MS, CFP, AEP, CDFA founded Finley Wealth Advisors in February of 2006, as a Fiduciary Fee-Only Registered Investment Advisor, with the goal of creating a firm that eliminated the conflicts of interest inherent in the financial planner – advisor/client relationship. The firm specializes in wealth management for the middle-class millionaire.

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