TheRodinhoods

Why is Financial Planning Important for Women?

 

During the Past 8 years of my career as Financial Advisor, we have rarely been approached by Women for Financial Planning.

 

Women tend to leave their Financial Planning to their Husband/Father, and most of the times there is a huge mismatch between the Actual Need and Action Taken.

 

Thankfully, in the past 1 year we have been noticing a shift in this attitude and many Working Women have approached us for Financial Planning and they have been getting Good Results and have discovered a new found confidence in them.

 

This Blog is inspired by Women who have started taking their Financial Planning in own hands and dedicated to those who are waiting in the wings to do so.

 

 

 

There are some special challenges and hassles that women need to face in their life, and especially when it is about securing their finances. 

 

Many women seem comfortable leaving their long-term finances and retirement planning to their Husband/Father.

 

If in the past they’ve taken a backseat to their husband in terms of family’s finances, it’s time for them to get in the driver’s seat.

 

While nearly 100 per cent of women are Confident about managing their day to day household finances, but many don’t feel confident in investing or protecting their income or assets on their own.

 

 

Women need to be financially equipped on their own because of:

 

Change in Working Patterns: Men work uninterruptedly throughout their lives,  women often need to take breaks ( Change in location after Marriage, Pregnancy, Children)

 

We have the much debated case of Mrs. Sudha Murthy- Wife of Mr. Narayana Murthy, Founder of Infosys. The couple was instrumental in building the Infosys dream. As the business started taking shape, the couple decided that one person was required to take care of their home and family.Mrs. Murthy gladly stepped aside to be the homemaker and let her husband fulfill his dream.

 

 

Longer Life Expectancy:The life expectancy for women is higher than men. So, the amount of retirement savings for women should also be higher. Statistics show that, on an average, women live 5 years longer than men, earn 25 percent less during their life time and work 11 years less in their careers.

 

 

 

Divorce and Relationship Breakdowns: Believe or not this is the hardest truth that anyone may face. Moreover, this not only affects one emotionally, but even has an adverse effect on one’s finances. Divorce and relationship breakdowns have more impact on a woman’s life compared to a man.

 

 

 

Financial planning for women provides a better and in depth understanding of the situations that can create a negative impact on the finances. This also helps them to consider different ways that can assist them in reaching their financial potential in future.

 

 

 

How can Financial Planning be done?

 

Let me add here, its not a ROCKET SCIENCE….anybody yes anybody can do their own personal Financial Planning.