Have you ever felt like it’s easier to pay for the “here and now” than to save for the “someday”? According to a recent Prudential study, women indicated they are more comfortable managing day-to-day finances than planning for and meeting long-term goals, such as saving for retirement.
Investing carries risks, of course – but there are risks to not investing: namely, not achieving your important financial goals. It’s important not to let a “confidence gap” get in the way of your investment success. Check out these ways to become more comfortable – and knowledgeable – in all areas of your financial life.
- Be specific with your goals. Would you like to retire someday? Or perhaps you want to send the kids to college. Most likely, you have multiple goals. Attaching some numbers to your vision – such as how much and when – can help you fine-tune your strategy.
- Ask questions. What are the costs associated with each investment? Do you need to plan for health care costs in retirement? And what about taxes: How much will you owe, and when will you pay them? Your financial advisor expects you to ask questions, so don’t hold back.
- Factor in Social Security. Social Security benefits are based on how long you’ve worked, how much you’ve earned and when you start taking benefits. On average, women’s benefits tend to be lower than men’s because women may spend fewer years in the workforce. The age at which you start taking benefits also has a big impact on your retirement income over the long term.
It’s never too late to become more engaged with your finances. For example, if your spouse is usually in the driver’s seat when it comes to investing, perhaps you can switch places during your next meeting with your financial advisor
. Taking on this role can help you bridge the confidence gap – which can have a significant impact on your future.