House and glasses on papers

When Mediation is NOT the best choice.

As a woman it’s easy to let your feelings of guilt, desire for closure and avoidance of conflict to undermine your divorce process, especially when engaging in mediation. When the emotions are running high you may be better served with a lawyer who can intervene when you are not making the best decisions for your future.

In mediation while the lawyer can suggest steps you should take to clarify financial values they can’t do more than just suggest. You may need someone to take you by the hand and lead you to the path that is best for your future. Remember in most cases it’s not just YOUR future it often includes your children as well.

Remember that it’s important to speak to a financial advisor, before, during and after a divorce, as lawyers are legal representatives, not financial ones? Please let us know by posting your comments on our Financially Savvy Women Fanpage.

Financially Savvy Women have the wealth they deserve

5 Myths about Women and Wealth

There are several myths about women and wealth that you might not be aware of. Below are the top five myths about women and money:

  1. Women are not good at math: Nature, not nurture, accounts for the gap in math skills. However, there is a growing movement to expose more women to learning and mentoring opportunities in the fields of math, engineering, finance, and science.
  2. Women are impulsive spenders: Money is an equal-opportunity, all purpose mood changer. Just as many men impulsively spend and overshop as women. One major difference is how society labels it. Women overshop; men collect, a term that gives the activity an intellectual cast. However the underlying impulse behavior is the same.
  3. Women are too emotional to invest wisely: Female investors outperform men in the long run. Men try to compete with the market and chase returns, leading to more frequent trading and high transaction costs. Women take a long time to make an initial investment decision; they are committed to the decision in the long run. Women are less reactive to short term changes in the market, trade less frequently than men, and realize better long-term investment performance as a result.
  4. Women would rather let men manage the family finances: Women are the chief financial officers of their households in 66 out of 100 homes (2010 Women and Affluence Study by Women & Co.). Women in the ultra high net worth market reported they play a high to moderate role in the management of the family’s assets. When it comes to retirement, 90 percent of women participate in decisions that affect their household’s retirement and investment accounts.
  5. Women are not interested in wealth management: The gender gap in finance is diminishing as women enter the field. Advising clients lends itself to a woman’s strengths in relationship building and communication, allowing female advisors to have the opportunity to outperform men. Organizations like Directions for Women and The Female Affect offer forums and networking opportunities to facilitate the advancement of women in financial services.

Kingsbury, How to Give Financial Advice to Women

Understanding these myths will help you overcome and fears that you may have had when it comes to managing your finances. Do you know of any other myths about women and their wealth? Please let us know what you think by posting your comments on our Financially Savvy Women Fanpage.

 

If you won the lottery would you…

We all talk about winning the lottery, some just talk about it while others consistently buy tickets in hopes of winning the “Big Pay Day”. Whether it’s the lottery, a substantial inheritance ,or sudden financial windfall, how would you use that money? Without thoughtful preparation, a windfall can become your downfall. Consider the following:

  • If you won the lottery tomorrow how would you spend the money?
  • What would your objective be or what would you hope to accomplish with this money?
  • How can I make this money last my lifetime and beyond?
  • In what ways can I use this money in meaningful ways?

Estate Planning: A Woman’s Issue?

While estate planning is important to BOTH men and women, it often has a greater impact on women. Women (on average) live longer and tend to marry older spouses, which makes them three times more likely than men to be widowed at 65. So for women, estate planning is a crucial part of retirement planning. Since they usually survive their spouses, women more often have the last word about how much wealth goes to family, charity, and the taxman.

Source: forbes.com

Do YOU Have an Emergency Fund?

A financial plan is a written document that spells out where you are in your financial life, where you want to be, and the investment strategies you will implement to reach your goals. A substantial financial plan should include an emergency fund.

What is an emergency fund?

An emergency fund is money that is set aside to be used in the case of an emergency, such as the loss of a job, an illness, or the death of a spouse.

Why have emergency funds?

An emergency fund increases financial security by constructing a safety net of funds that can be used to meet emergency expenses as well as reduce the need to use high interest debt.

How much should I be saving?

It is suggested that you save enough money to cover 3 to 6 months of expenses in a liquid account.

The Prince Charming Myth

“Dispelling the myth that someday our prince will come is the most important financial decision we will ever make” – Barbara Stanny Prince Charming isn’t Coming

 

Unfortunately, this is a decision that countless women have yet to reach. In a survey of 23,000 women, the majority grew up with the expectation that someone else, usually a man, would do the financial planning in their lives. However, when women discover they like taking charge, they feel more secure and self-confident when they understand what is going on behind the scenes and know enough to make informed financial decisions.