wealtharticles-a_man_is_not_your_financial

A Man is not your Financial Plan.

Never be certain that a man will take care of you for life. As women, you should have your own money stash away somewhere. I allow my wife to stash cash away somewhere. I don’t bother about where she places her monies, likewise I also do have my own private account somewhere. This is not that we do not trust one another, rather it is money that will remain private for your own uses.

Reason is simple while we remain faithful to our vows, but we cannot promise that it will be a forever thing. Marriage is always a work in progress. Therefore as husband and wife we are not taking for granted that we are going to rely on each other during our retirement years.

However we do have joint accounts. These accounts are for family purchases and uses. Both of us do have a responsibility to contribute to our family fund.

However, knowing how women think, their number one concern is always security. There is always this burning question about whether this man that I marry will forever be with me. Trust me ask any married women and she will tell you exactly what I have just said. No one can change that. It is in their nature to seek security.

Let me now share with you some demographics about women:

·Single, divorced or widowed
These group of women need to plan well and manage even more closely on their finances. Being alone is always a horrible feeling, but the planning of their retirement should be their main priority.

·Married with or without children
Priorities are now shifted especially if they have children. If they do not, their priorities will be towards preparing for children. It is wise for a women to have joint accounts with their spouses, especially the setting up of emergency funds. They should also ensure that mortgages and joint-tenancy properties are insured and will be paid off should the husband die prematurely.

Let me share with you the life stages of women:

·20s
Have the discipline to save through monthly savings and investment plans. Such plans allow young adults to enjoy the benefits of compounding even when they put aside just a small, fixed amount every month. Saving and investing early, even in small amounts, goes a long way towards helping you accumulate a significant sum in later years.

If your parents have bought insurance for you, you should review your insurance needs and where necessary, fill the gap.

·30s
When you are ready to start a family, focus on what the children you plan to have will need, such as education funds, critical illness plans and medical insurance. Mothers should also start saving for retirement if they have not already done so. You should ensure that you are sufficiently hedged against your liabilities, which would have gone up. They could include an increased housing loan or renovation costs for your flat. Once you have dependents, you should ensure that their lifestyles will not be affected if you are not around to provide for them or are unable to do so.

·40s
Aim to start paying off your liabilities. You don’t want your mortgage debt to carry into your retirement planning if you have not done so yet.

At this stage, your income would have increased. It is a good time for you to review your insurance coverage, for example, to ensure your critical illness plan covers you beyond the age of 60.

·50s
You should ensure that your retirement plan is on track and that you have instruments such as annuities in your retirement portfolio to hedge against longevity risk.

Your investment risk profile might change, but do stay invested and work as long as you can and avoid drawing down on your retirement portfolio too early.

Calvin Yeo, CFP, MBA, CPT
Wealth & Financial Coach. www.TheWheelofWealth.com. Calvin is also a speaker and trainer in the area of Wealth and Financial matters. With 17 years of experience in the financial industry, he is also an expert in Entrepreneurship and Business Strategies and is about to publish a book call, "Death of Sales". You can visit it at www.DeathofSales.com.