Women have increasingly become the financial decision-makers in their families, in addition to juggling many other different roles. In a single day, a woman can go from being a mom, to chauffeur, to chef, to housekeeper and to bookkeeper, all while holding down a career and running her own business.
This is a lot to juggle, but whatever you do, don’t let your money management slide. It’s essential to always be on top of where and how your money is currently being spent, what investments you are paying towards and if there will be a sustainable amount left upon retirement.
The starting point should be a short visit to a financial adviser to guide and advise you on ways to manage your money and, ultimately, letting your money work for you.
Here are some questions you should be asking your financial adviser:
1. What is my overall financial position?
It is imperative that you know what your net worth is and, through a comprehensive financial needs analysis, you can establish what your overall financial status is. Without this knowledge, you won’t know if you’re making progress towards your goals.
This question becomes more important should you have recently become widowed or divorced. By disclosing your current financial situation, your financial adviser can assist in creating the necessary contingency plans should circumstances change.
2. How long do I need to plan or save for?
Because women tend to live longer than men, they need to plan accordingly. This is critical in the decision-making process with your financial adviser, as you need to ensure your retirement savings and income stretch further and last longer. However, this can be challenging given that in general women also tend to choose safer, lower-yielding investments which results in lower returns. Therefore, in order to avoid running out of capital, you need to understand the risks associated with your investments.
3. Discuss your investing personality and your appetite for risk
Are you a risk-averse or a risk-loving investor? Can you accept fluctuations in the markets or are you prepared to invest for the longer term and generally have a hold strategy? This all depends on your financial situation and your financial goals. Try to stick to your plan – after all, that’s the reason you have a plan in the first place.
4. What about the cost of investing?
Your financial adviser should be as transparent as possible when it comes to the disclosure of fees and the taxes payable. This includes any product, portfolio or adviser-related fee, as well as upfront and on-going fees. Fees and tax vary depending on the investment vehicle selected and it is imperative that these are outlined to you when you take out a policy.
5. How often would I meet to review the goals in my financial plan?
This is an important part of a good, solid financial plan, if not the most important! You need to visit your adviser regularly, at least once a year, in order to be able to measure and track your financial progress, as well as being able to measure the probability of success in reaching your financial goals. Your financial adviser will play a fundamental role in helping you on this. |
