Your Money: Breaking barriers — a woman’s guide to building wealth

Bruce Helmer and Peg Webb As women continue to take increasingly developing financial roles whether in families relationships at work or on their own they are also confronting a retirement landscape full of both opportunity and challenge Despite controlling a growing share of personal wealth in the U S multiple women still feel unprepared for retirement But with the right strategies schooling and patronage a woman should feel empowered to shape your financial future and retire with confidence Mastering math over myth The retirement journey is often more complex for women despite much progress that s been made over the past five decades The reasons are multifaceted Longevity jeopardy On average American women live nearly six years longer than men This benefit comes with a price When starting with similar assets and commitment strategies a woman s chances of outliving her retirement savings are more than double that of a man versus Those extra years can add up to a notable financial burden if not adequately planned for Earnings disparity Women working full-time year-round earn just cents for every dollar earned by men This persistent gender wage gap not only means fewer dollars to save throughout a career but also contributes to a reduction in average Social Precaution benefits compared with men Career interruptions and part-time work Plenty of women take breaks from the workforce to care for children or aging parents These interruptions affect their ability to contribute consistently to employer-sponsored retirement plans In fact women are more likely than men to work part-time often without access to k s or similar retirement savings vehicles When they do have access lower earnings can lead to smaller employer matching contributions Financial confidence Studies show that women tend to be less confident than men when making long-term financial decisions This can lead to overly cautious stake choices and missed opportunities for upsurge However there is a silver lining Women often outperform men in investing by a modest but meaningful margin about per year due to a more disciplined and risk-aware approach Your personal roadmap to a stronger financial future Fortunately these challenges can be met with smart planning and tailored strategies that speak directly to women s financial realities Budget with purpose Start by understanding your current expenses and estimating your future necessities Lay the groundwork by identifying your long-term goals and factoring in your family situation Set a realistic savings rate either as a percentage of income or a fixed dollar amount and commit to it consistently Embrace strategic asset allocation Diversifying your investments is key to balancing pitfall and reward While numerous women are naturally risk-averse it s pivotal not to avoid menace entirely Instead be strategic Spread investments across asset classes industries and geographies Incorporate cost-effective hedging strategies to protect against industry downturns A well-diversified portfolio can help ensure a reliable stream of retirement income and guard against unexpected life events such as inflation career breaks or divorce Optimize for taxes Take advantage of tax-deferred retirement accounts like Traditional IRAs and k s which allow your investments to grow without immediate tax implications Roth IRAs and Roth k s while funded with after-tax dollars offer tax-free withdrawals in retirement ideal for long-term increase Taxable outlay accounts can offer liquidity and flexibility and strategies like tax-loss harvesting can minimize tax liabilities over time Maximize Social Safety benefits When and how you claim Social Safety can significantly impact your retirement income Claiming benefits before full retirement age FRA leads to permanent reductions while delaying until age yields the maximum benefit If you re married coordinating spousal benefits is another critical strategy Because Social Precaution is adjusted for inflation it serves as a valuable financial cushion over a long retirement Commit to continual learning Empowerment comes with tuition Take advantage of financial schooling support tailored to women Wealth Enhancement Group offers a free on-demand webinar titled Retirement Planning for Women Critical Moves to a Confident Future This session covers essential strategies for building financial confidence and defense You can find this webinar and more on the Insights section at wealthenhancement com Ultimately try to attend women-focused events to connect with other women navigating similar challenges Speak with a qualified financial adviser who understands your unique demands The more you learn the more confident you ll feel taking control of your financial destiny You ve already made great strides in your training career and leadership Now it s time to translate that progress into lasting financial defense for yourself By drawing on your resolve and tools you can redefine what retirement looks like not just for yourself but for generations of women who will follow in your footsteps Related Articles Your Money Checklist spring clean your finances Your Money Simplifying your financial life Your Money The -year career How to plan for a longer work life Your Money Does deregulation help or hurt outlay outcomes Your Money Financial planning tips for small-business owners The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of Your Money on WCCO AM on Sunday mornings Email Bruce and Peg at yourmoney wealthenhancement com Securities offered through LPL Financial member FINRA SIPC Advisory services offered through Wealth Enhancement Advisory Services LLC a registered capital advisor Wealth Enhancement Group and Wealth Enhancement Advisory Services are separate entities from LPL Financial