You may not be aware that some financial planners will charge you on an hourly basis for their advice. Why would you want to engage an advisor on an hourly basis? There are a variety of reasons this may be a good choice for you.
You Don’t Have the Minimum Assets Many Firms Require
A common structure of financial firms is that they will provide advice for you if you invest your money with them. Unfortunately, many firms have account balance minimums of $250,000, $500,000 or even higher. This pushes those investors with smaller asset bases out of the market for advice.
You’d like a second opinion on the work you are doing yourself
Perhaps you really enjoy and are very adept at managing your own investments and financial plan. Consulting with a financial planner who can double-check your assumptions and outcomes can save you from making big mistakes. It is better to find out you need to make a change now when you have a time left to reach your goals, rather than years after it is too late to correct your course of action.
You’d like to ask a professional a few questions specific to your situation
All of the information you are seeking is potentially available for free on the internet. But it could take years to search for the information you are seeking. And even if you find what you are looking for, is it relevant to you? Consulting with a financial planner allows you to ask questions and receive answers specific to your individual situation. Tailor-made advice, just for you.
You’d like to try someone out before committing to a long-term relationship
Choosing a financial planner is a big decision. This is potentially a years-long relationship, and you are trusting this person to help you make some of the most important decisions of your life. Why not test the waters and make sure you like them and the work they do?
Paying for hourly services may be something which you have never considered, but can be an excellent option. A great place to start would be to make some calls and ask some questions!
CLICK HERE for What Questions Should Women Ask When Interviewing a Financial Advisor?
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
It seems that every day I notice another article or study on Gender Lens Investing. This isn’t surprising considering that there are now at least 35 options of gender lens funds.
What is Gender Lens Investing?
Gender Lens Investing is a subset of “Impact Investing”; that is investments that are made to have a positive (and profitable) social and environmental impact on the world. Traditionally GLI has meant investing in companies that have larger than average representations of women in leadership positions and on their corporate boards of directors. But there are other approaches to consider: providing women entrepreneurs access to funding, or investing in products and services that improve the lives of women.
How Does It Fit Into a Portfolio?
The easiest way for the average investor is access Gender Lens Investing is through ownership of corporate stocks, or mutual funds that hold these stocks. Investors or fund managers consider factors such as pay equity, board representation, parental leave policies, anti-harassment policies, and management training programs. Some GLI mutual funds focus on just one of these areas.
You Don’t Have to Sacrifice Performance
Investors often think that by pursuing investments that focus on improving the lives of women and girls they must necessarily accept lower returns. But this is emphatically not true. A study by Bank of America Merrill Lynch found that companies with at least 30% women in management have enjoyed higher subsequent one-year Returns on Equity since 2012. Companies with more women in board seats or senior leadership are performing better in terms of sales, profitability and invested capital(1)
If you are interested in adding GLI to your portfolio, speaking with a financial advisor is a great place to start.
(1)https://www.piie.com/publications/wp/wp16-3.pdf
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through GPS Wealth Strategies, a registered investment advisor and separate entity from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
In my opinion, too many women still lack the confidence necessary to take control of their financial lives. They often fear making investment decisions, managing their finances, and planning and monitoring their spending - all which can help them increase their wealth.
The answers are as individual as each woman. However, one of the most common that I see as a financial planner is that women are stopping themselves from being assertive. Many women leave their financial lives to their husbands, boyfriends or parents, or ignore it all together, Because of this way of thinking, they lack financial power. Financial empowerment must come from within. Women must seize it with fervor, reflecting an unshakable determination to take control of their financial lives. You must tell yourself that you can become empowered, and that you will not let outdated notions of gender hinder your success. Keep "EMPOWER" in your mind as an acronym representing these concepts:
Education is critical
Motivation inspired by your values
Protection against risk
Ownership of your future
We — Find a partner to help you
Emotions should be kept out of decisions
Responsibility to yourself
If you are looking for a financial planner who will help you understand your motivations and find your financial confidence, please reach out for complimentary phone call. I’d love to help you!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Last month, I discussed how fear of negotiation hurts women’s retirement savings. I spoke with Elizabeth Suárez, a national speaker, coach, and the author of “The Art of Getting Everything” about negotiating a salary offer: https://tinyurl.com/yxjr4tyl. This month she and I cover what options women have when they are denied a salary increase request during negotiation.
Liz Windisch, CFP®: Thank you for continuing this discussion on women and how navigating their salary affects their retirement. When a woman asks for a salary increase and is denied, is “no” the end of the discussion?
Elizabeth Suárez : For me, “no” is not a final answer. I consider the answer of “no” as a U-turn, where you need to go back to the drawing board and figure out a new course of action. When a “no” is given one must assume one or all of the following:
1. The person to whom you are speaking doesn’t have the power to accept your request for higher compensation on the spot.
2. The person feels uncomfortable having to ask a superior about your request and simply wants to close the deal and get you working immediately.
3. The person might be comparing his/her starting salary to what they offer you, and feels you shouldn’t be greedy.
LW: Given those scenarios, what is the appropriate course of action in that situation?
ES: All of the above three explanations should be treated respectfully. The best way to counter a “no” answer is to do the following:
1. First and foremost acknowledge the “no” answer by stating something along the lines of: “I would like to have a better understanding of why my request for a higher salary has been rejected. Are you the right person who can help me with this?”
2. Most of the time, they will claim they offered you a salary at the highest end of the range. With such a response, you can counter by stating, “Thank you for sharing that. I would like to share with you some research I recently conducted which illustrates that someone of my caliber and background, who works for a company like this one, in this city, is making the following…” (Of course, you need to do complete this research even before you interview. You can reference websites like salary.com for some guidance on salary ranges based on location, type of job, company, etc.)
3. If the above steps don’t help, and the potential employer is not willing to provide you any more money you have three options:
Option A: You negotiate other amenities, such as a professional development budget, an extra week of paid vacation, the opportunity to work from home two days a week, or reimbursement for other items, such as Wi-Fi or cellphone charges.
Option B: You negotiate option A with an agreement to re-evaluate your salary in 6 months based on tangible objectives you agree upon at that time. It would be up to you to discuss and agree upon these objectives and then monitor your progress at your one-on-one meeting with your boss. When you seek agreement, you must ensure your new boss and HR are in agreement with this approach, and it needs to be put in writing by you!
Option C: You walk away from the offer. Yes, you are capable of walking away. Sometimes an offer is not worth it, and there are other options out there waiting for you.
Next month: Setting up the necessary goals to ensure you receive a raise in the upcoming year.
Liz Windisch, CFP® has guided women toward overcoming their money fears and mastering their finances for over 15 years. She believes women will not be socially equal until they are financially equal. For more information, please visit www.lizwindisch.com or contact her at [email protected].
Elizabeth Suárez is an author, speaker and coach dedicated to helping professionals unleash their potential by transforming them into skilled negotiators and decision makers. For more information, please visit https://www.negotiationunleashed.com/ or contact Elizabeth at [email protected].
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Elizabeth Suarez is not affiliated with LPL Financial and Aspen Wealth Management.
Most of my clients are Gen X women, and I can say that without a doubt, many of them are terrified. They are afraid that they don’t have enough money saved, scared that they’ll run out of money when they are old, and they are nervous that they are investing all wrong. These are not the women I am worried for. What terrifies me are the Gen X women who haven’t yet had this retirement wake up call at all. They are the ones who keep me up at night.
The last of the Xers are turning 40
According to the Social Security Administration, full retirement age for Gen X is 67. So if we assume that 67 is the age Xers are planning to retire (a big assumption), then the oldest of us will want to retire in 12 years, and the youngest in 27 (Gen X is generally agreed to have been born between 1965-1980.) No matter how you look at it, 12-27 years is not a substantial amount of time to amass a retirement nest egg. Only 65% of Xers have saved any money at all for retirement according to a recent study by the Employee Benefit Research Institute. I think you can see where this is going: as a group, Gen X is woefully behind in saving for retirement.
You may not be able to work as long as you think
Many women I meet with start by telling me right off the bat that they know they are behind in saving for retirement, and understand that they “will have to work until age 70”. Aside from the fact that you may not want to work that long, what if you can’t? Two thirds of elder care is provided by women, and age discrimination is very real. Working into your 70s isn’t always in your control.
You can save a substantial amount of money in 12-27 years
I titled this article “Wake Up Call” and not “It’s too late for you” because you can accomplish a lot in 12-27 years, but you need to be dedicated. You need to map out what you’ll need in retirement and backfill that to figure out how much you need to save, then you’ll need to set a budget and stick to it. This part is non-negotiable. It’s not late if you are dedicated to catching up.
Generation X women are the least confident in their financial future. Only 50% are somewhat or very confident they will have enough money to maintain their lifestyle through retirement. (Prudential Financial Experience & Behaviors Among Women, 2015). Taking a hard look at your finances now, and committing to getting ready for retirement can put you in the 50% who are confident and ready for retirement.
*The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
*All investing involves risk including loss of principal. No strategy assures success or protects against loss.
A financial advisor! According to a recent study, 87% of Gen Xers would use a financial advisor if they found the right one.(1) So what’s keeping you from finding the right advisor?
Is it cost? Despite what TV and movies show, financial advice is not just for rich people. There are options for all income and asset levels, and speaking to an advisor can inform on what costs actually are. Further, I think that the people who benefit the most from financial planning are those that don’t have vast riches. Middle-income people often need to make tough choices with their money and guidance can be critical in these decisions. For example, It’s hard to know if you should put money in a retirement account or supplement your child’s college education, and working with a professional can be immeasurably helpful.
Is it embarrassment? Do you feel hopelessly behind in retirement saving, and are embarrassed about this fact? Believe me, we’ve seen worse than you! In fact, over a third of Gen Xers have absolutely nothing saved for retirement. This is what we do, and there is no reason to let your embarrassment keep you from seeking professional assistance. You may be behind, but you still have time to make a major impact on your retirement savings if you get moving now.
Is it fear of the unknown? Are you worried that you won’t understand what a financial planner is saying, or that the meetings will be full of complicated jargon? No planner worth her salt should be speaking over your head. It is part of our job to ascertain your level of knowledge and work from there. Planning the questions to which you want answers ahead of time can help with this nervousness. If you don’t click with the first advisor you meet, find another one. There are plenty of planners who are patient and genuinely want to help you. Trust me, we’re out there! It’s never too late to take planning for your retirement seriously. Don’t let fear or embarrassment keep you as one of the 87% of Gen Xers hoping to find the right advisor!
(1) Financial Advisor Magazine, July 3, 2019
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Despite all of the gains women are seeing in politics and social capital, women’s confidence in financial matters is actually decreasing, according to a new study by Allianz Life Insurance Co. of North America. More than half (57%) say they wish they were more confident in their financial decision-making. Confidence in financial matters doesn’t need to be a major undertaking. Spending just a little time and energy can help you gain control and significantly move the needle on financial confidence.
Get Educated
Burying your head in the sand and hoping for the best just isn’t going to work. It’s easier than ever to find free or affordable resources to educate yourself on financial matters. Yes, sometimes there is too much information and the sheer volume of it all makes you want bury your head in the sand again. Like learning anything new, starting at the beginning and taking baby steps is the way to move forward without feeling overwhelmed. Another option is to hire a professional. Money coaches can help you formulate a budget and get control of your debt situation. Financial advisers can help you understand longer-term investments, and a good one will take the time to teach you at your own pace.
Get Control of Your Debt
Finally getting out of debt is going to be the #1 action you can take to help you gain financial confidence. Debt is a burden that weighs you down and drains you of certainty for your future. You might even feel shame about your situation, and that absolutely does nothing for your confidence. You most likely won’t be able to pay off all of your debt in a short amount of time, but make a plan and stick to it. Ready for next-level financial confidence? Pay off your debt and continue to make those same “payments” to yourself.
Get a Handle on All of Your Accounts
It’s hard to feel confident that you are on the right track financially if you aren’t sure exactly what you have or where it is. It is incredibly difficult and time-consuming to keep track of, say, two checking accounts, a savings account, four old 401(k)s, a work credit card and three personal credit cards (love those points!!) The downside of account disorganization is many fold:
• You could be earning a higher interest rate by combining savings accounts.
• You may be duplicating holdings or owning counter-productive investments in multiple retirement accounts.
• You are most likely paying too much in fees!
• It is also very easy to lose track of smaller accounts, especially if you have moved.
Gather all your account statements (or logins) together and find out where you can consolidate. Knowing exactly what you possess and having a solid strategy will move the needle forward on financial confidence.
Find Out What You Actually Need to Save for Your Retirement
Are you stashing money in a 401(k) and crossing your fingers that it’s enough? Of course, you are not confident in your financial situation! Finding out what you actually need to be saving each month for retirement is the ultimate confidence-booster. You may not LIKE the answer, but knowing is the key In my experience as an adviser, clients are often shocked to find out that they are further behind than they thought, but they are more CONFIDENT when they do find out because now they can make a plan to catch up. You can’t accomplish a goal without knowing what it is. Meet with a professional and get a handle on your situation once and for all. Then bask in all of your newfound financial confidence!
Savvy Women Money Quiz
You don’t need to understand market trends, how to buy a stock, and all the other technical investment terms advisors love to spout. But as a woman you must become Savvy with your money, understanding what you have, why you have it and how it will support you.
Let’s see how Savvy you really are with your money.
With each question below give yourself a score from 1= I’m clueless to 5= I am on it. Total your score at the bottom to determine your Savviness.
I understand my investment statements and review them periodically (on paper or online).
I am always learning from my financial advisor and feel extremely comfortable asking questions (even the stupid questions).
I have a financial plan for my money and investments that I understand, review annually and is very meaningful to me (They are not just numbers).
I know the purpose for my investments; which ones are designed to protect my money, grow my money and those that provide income.
I know what my lifestyle costs and am actively conscious of living within my means
If you scored:
20 - 25 points you are a Savvy Woman!
15 - 19 you are on your way to becoming a Savvy Woman.
14 or below you need a new advisor providing a new experience that makes your path to financial independence more meaningful, enjoyable, and empowering.
If you’re currently considering purchasing investment property, there are an equal measure of risks and rewards. Like any investment, risk can be managed, but you want to be aware of the risks prior to investing in property. And like any investment, there can be rewards, some quite large.
The following is a breakdown of both the risks and the rewards of purchasing investment property:
Risks:
Rewards:
If you do decide to invest in property, spend some time researching trends, the area you are looking to purchase in, and start looking for a property or two to add to your portfolio.
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2019 Advisor Websites.
