Author: Confidence Wealth & Insurance Solutions

In the news lately there has been a term bandied about that peaks reader’s interest, but they still don’t quite understand what it means. That term is Female Financial Paradox. The basic idea is that women tend to manage money by saving and budgeting rather than planning and investing to improve their financial lives.

What is the crux of the Female Financial Paradox?

The concept of increasing the value of money by developing financial plans is difficult for many women to implement into their lives because they’ve been socially trained to pinch pennies to stretch the dollar, while it was their husbands’ job to plan how to save for a rainy day or invest in order to make large purchases, such as a new home, or set aside savings for the children’s educations, or improve their retirement years.

Indeed, women now in their 40s were raised to believe that it was the mother’s job to tend to the day-today money management, while it was their father’s job to manage larger financial matters. As a result, these women were not likely to have been encouraged to learn about saving and investing by either parent. Even women in their 30s were raised to believe that their earnings were supplemental income to their spouse’s earnings, while the husbands remained the key breadwinners and financial manager of the household.

It worked in the past. Why is it an issue now?

That may be what is going through your mind, “If it worked over the years, why is this a paradoxical issue now?” The Female Financial Paradox matters because more and more women are earning more than their spouses – from earning more college degrees to societal changes that recognize women as good workers and capable of performing well in leadership positions.

Recently, DailyWorth, the leading digital media company for ambitious professional women, did a survey asking questions to 10,000 women about their roles in family financial planning. The information learned from the survey shows the conditions related to this paradox quite clearly:

• 90% of women identified themselves as the main breadwinner in their households.
• Only 76% consider themselves the primary retirement planner.
• 60% admitted that they have below average investing and planning skills.
• Less than 50% of the women surveyed sought financial resources to learn about financial planning.

Women are earning better income and gaining more status in the business world, yet they still have a short-term, immediate view about money and would rather have someone else manage long-term matters for them.

In order to change the Female Financial Paradox, women must create a paradigm shift regarding their perception of money and how to use it. Rather than focusing on the size of their paychecks and how they can stretch it for today, they need to educate themselves about how to use their earnings for longer-term gains that make that better income worthwhile.

While Thanksgiving is a time to enjoy the company of loved ones, it’s also a time to give thanks. We’d like to extend our sincere gratitude to our PLJ community who has been a part of us throughout the year.

“Gratitude helps you to grow and expand; gratitude brings joy and laughter into your life and into the lives of all those around you.” –Eileen Caddy 

As 2013 comes to a close, we wish you a happy and peaceful Thanksgiving.

As a woman, you have much bigger concerns than a man does! There are many reasons behind this. As a woman you are likely to:

1. Live longer
2. Collect lower retirement benefits, and
3. Incur higher medical costs than a man.

These are some of the biggest contributing factors to why many women, just like you, are likely to run out of savings during retirement!

Did you know?

• The average Social Security benefits of retired women were 22% less than the average benefits of men, in 2012 ^[1]
• A woman who reaches the age of 65 can on average expect to live until the age of 86. ^[2]
• Many women live well into their 90’s! Women over 65 are over 30% more likely than men to depend exclusively on Social Security for all of their retirement income ^[3]
• The social security trust funds could be exhausted by 2033 and unable to pay full benefits ^[3]
• Widowed women over 65, are twice as likely to live in poverty, as compared to men in the same situation ^[3]
• Women are more than twice as likely to be widowed after the age of 70 than men are ^[4]
• Never married women are almost three times as likely to live below the poverty line in retirement ^[3]

As a woman, are you ready to deal with the unique retirement problems you face?

Really, ask yourself that question!

If your answer is “I don’t know,” then take advantage of our Community Education Center! Click here to access and download our valuable resources! Click here to be a part of our VIP list and get invited to our events and workshops! 

[1] Social Security Administration. “Number receiving benefits and average monthly amount, by sex of beneficiary.” (http://ssa.gov/cgi-bin/currentpay.cgi)
[2] Social Security Administration. “Calculators: Life Expectancy.” (http://www.ssa.gov/planners/lifeexpectancy.htm)
[3] U.S. Government Accountability Office. 2012. “Retirement Security: Women Still Face Challenges.” Publication No. GAO-12-699. (http://www.aging.senate.gov/events/hr250gao.pdf)
[4] U.S Census Bureau. May 2011. “Number, Timing and Duration of Marriages and Divorces: 2009.” (http://www.census.gov/prod/2011pubs/p70-125.pdf)

If you are thinking that you are either too young, too old, or don’t need life insurance at this point in your life, well, I must urge you to reconsider. Unfortunately, for most it is too late when a loved one passes away, leaving the family burdened with all of the funeral expenses, and scrambling to make ends meet.

BUT, if you are among the prepared class that has already taken the necessary steps and signed up for life insurance, you can rest assured that your family will be taken care of in the event of a loss.

…The answer to peace of mind is quite simple: You need life insurance!

Warning: If you already have life insurance, don’t think you’re out of the woods just yet! Remember, you must review and make the appropriate changes as circumstances in your life change! Don’t allow yourself to be blindsided by a policy that is not the right fit for your needs!

The major reason for purchasing life insurance is to guarantee the continued financial support of loved ones who depend on you!!

HERE ARE 6 REASONS YOU MIGHT NEED LIFE INSURANCE

✔ To replace your ability to earn income
✔ To replace your ability to care for others
✔ To pay for expenses arising as a result of death
✔ To provide for special business needs
✔ To fund a charitable interest
✔ To provide supplemental income for later in life

Don’t know how to tackle life insurance? How much you need? What plan would protect your loved ones? Let us help you! Click Here!

FUN FACT ABOUT LIFE INSURANCE: DID YOU KNOW??

Apollo astronauts used autographs as life insurance!

Apollo mission astronauts had it tough when it came to life insurance. NASA didn’t cover them, and traditional life insurance companies did not want to insure them either. The risks were just too high for traditional insurance.
What did they do? They signed autographs!

NASA created a series of “Insurance Covers,” which looked like post cards commemorating whatever Apollo mission they were going on. They would give some to each crewmember, who would sign all of them. The crewmembers would then give the insurance covers to their families as close to launch as possible. The value of these cards would be pretty high by itself. In the tragic case they didn’t return, however, the value of these cards would go up immensely. This way, their families could sell them and be able to provide for themselves!!

MORAL OF THE STORY: LIFE INSURANCE IS IMPORTANT!!

Interestingly enough, it has been said that more than 95 million US adults don’t have life insurance. We hope this will help you realize just how important coverage is!!

You never know what life has in store for you… Protect yourself and your loved ones from unexpected circumstances and unforeseen events!!

Have a question? Reach out to us! Click here and let us know!