5 Reasons Women Need to be Involved in Financial Planning

March 1, 2023
By kowal-ig

As we celebrate Women’s History Month, it’s a great time to reflect on the significant milestones women have achieved in finance and why it’s crucial for women to be involved in financial planning.

Historical Milestones for Women in Finance:

Victoria Woodhull

Wall Street’s first female broker. She and her sister Tennessee opened Wall Street’s first woman-owned brokerage in 1870. The sisters serviced four thousand visitors on their first day and were nicknamed, “The Queens of Finance.”

Louise M. Weiser

The First woman to be named president of an American bank in 1875. Weiser succeeded her husband and served as president for Winneshiek County Bank in Decorah, Iowa until 1892 when her son became the bank’s third president.

Muriel Siebert

The first woman to have a seat on the New York Stock Exchange, in 1967. She was the only woman among 1,365 men. Siebert is considered the “first woman of finance” and went on to open her own brokerage firm.

These women, and many others, have helped pave the way for women in finance today. And while the relationship between women and money has evolved quite a bit, there is room for improvement. According to a recent study, 85% of women manage everyday expenses, however, only 23% take the lead when it comes to long-term financial planning. Many leave the financial planning up to their spouses, but being actively involved is essential.

5 Reasons Women Need to be Involved in Financial Planning

Understanding Financial Goals
- A financial plan will outline your financial goals, a plan to reach those goals, and an estimated timeline to do so. Being involved in the financial planning process will help you understand your and your partner’s goals and the roadmap to get there.

Preparation for the Unexpected
-  The future is unpredictable. It is so important for women to understand their financial situation, know what accounts they hold, and who, if anyone, is managing their retirement accounts. There will likely come a time when you are handling these matters without your spouse.

Reducing Risk Aversion
- According to a recent study, women invest 40% less than men. This is largely because women are more fearful of incurring losses and are not as impulsive. But that means women are not putting their savings to work. This is where financial planning comes in. A financial advisor will work with you to build a plan around your risk tolerance and timeline.

Achieving Financial Independence
- Sometimes marriages end, or perhaps you never marry. Regardless of the situation, you want to be able to have enough financial independence to stand on your own two feet. Financial planning can help you get there.

Addressing Different Priorities
- People are different, so naturally, you may have different financial priorities than your partner. Perhaps you would like to give more to your favorite charity, while your partner would like to leave an inheritance in the estate. Taking an active role in financial planning will ensure your priorities are accounted for as well as your partners.

Get Involved in Financial Planning Today

Now that you have seen why women need to be involved in financial planning, it is time to get involved! Start today by scheduling a no-obligation retirement review with one of our fiduciary advisors. At Kowal Investment Group we work with you to help build a plan you feel confident about.  Schedule today!

Disclosures:

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.

Kowal Investment Group, LLC (“Kowal”) is a Registered Investment Advisor. Kowal will maintain all applicable registration and licenses as required by the various states in which Kowal conducts business, as applicable. Kowal does not provide legal, accounting, or tax advice. Consult your attorney or tax professional. Representatives have a general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration.