Tag: women

"Gray divorce" among Americans over 50 has skyrocketed, especially for those over 65. This trend poses significant financial risks for women, who typically have lower incomes and less savings compared to men. To protect themselves, women should take steps such as: * Understanding household finances * Having access to their own funds * Claiming Social Security strategically * Saving alimony * Considering a prenup or postnup that safeguards financial interests if the marriage ends.

Women carry the majority of the country's student debt, with factors such as caretaking responsibilities and gender pay gaps contributing to the burden. Experts recommend exploring options like income-driven repayment plans, loan deferments, and hybrid financial planning to manage debt. However, prioritizing retirement savings and children's education should be balanced with personal financial needs.

Women may claim Social Security at age 62, but since they live longer than men, claiming later is recommended, even if it means a temporary reduction. This is because they need their benefits to last longer and Social Security offers guaranteed income for life. Delaying claiming also increases the benefit amount due to delayed retirement credits. Additionally, women often save less than men for retirement, making guaranteed income sources like Social Security even more crucial.

Over the last decade, financial planners have transitioned from focusing solely on Roth savings to embracing a diversified investment strategy. They now prioritize pretax and Roth 401(k) deferrals to maximize employer matches, make Roth IRA contributions, and maintain taxable brokerage and health savings accounts. This approach provides flexibility, allowing for varied withdrawals based on yearly tax circumstances. While asset location can affect tax bills, financial decisions should prioritize overall wealth accumulation over tax optimization.

Financial scams targeting older adults, particularly women, are on the rise due to social isolation, cognitive decline, and ease of digital manipulation. Scams include phishing emails and impersonations, aiming to extract sensitive information. The impact is significant, with seniors losing billions annually. To combat this, recognizing warning signs, organizing support networks, conducting security audits, and establishing legal protections is crucial. Vigilance and awareness are essential to protect seniors' financial well-being.

Despite educational advancements, women encounter pay disparities that hinder wealth accumulation and retirement savings. Vivian Tu's mentorship instilled a wealth mindset, and by investing her earnings and seeking higher compensation, she became a self-made millionaire at 27. Financial planners suggest consistent saving and investing, starting with 401(k) contributions and considering increasing stock allocations. These strategies combat challenges like caregiving responsibilities that potentially diminish earning capacity and retirement savings.

Despite being cautious investors, women outperform men in investments by 40 basis points. Investing expert Jennifer Shahade emphasizes calibrating risk, recognizing that not taking risks is itself a risk. Women miss out on gains by being overly cautious. To maximize returns, it's essential to avoid excessive caution, consider risk carefully, and invest in reputable companies with long-term growth potential.

In February, the US unemployment rate rose slightly to 3.9%, despite a decrease for Black women to 4.4% due to job growth in sectors with high Black female employment. However, Hispanic women saw an increase in unemployment to 5%. Overall, the labor market remains strong, with economists anticipating stability in the coming months.