Expert Tips For Women Baby Boomers’ Financial, Emotional Security
For many Baby Boomer women, the second half of their lives brings a great deal of anxiety for two reasons: fear of a lack of financial security and living with regrets.
The concept of emotional well-being and fulfillment are heavily dependent upon financial security. These concepts are interwoven and co-dependent making them critical underpinnings to happiness and contentment. On Aug. 4, independent financial expert Carol Clark of OnCenter Financial and Joyful Aging expert, Jane Kerschner shared specific actions Baby Boomer women can take to safeguard their financial and emotional health in the second half of their lives so this phase can be fully enjoyed.
When it comes to financial matters, Financial Times reported last year what keeps women from investing is their view of the financial services sector as “untrustworthy,” “unwelcoming,” “patronizing,” “male-dominated,” “complicated,” and “full of jargon.” Women want to invest but are intimidated and don’t know who to trust — and that leads to inaction that jeopardizes their financial security.
“Baby Boomer women face a unique set of financial challenges,” Clark said. “They live longer than men, and with continuing advancements in medical science, life spans are increasing. This raises lots of questions for Boomer women revolving around the management of their finances to ensure they don’t outlive their assets.”
Clark’s essential financial tips for Boomer women include:
¯ Do not leave your money in money market accounts because the ravaging effects of inflation will erode your purchasing power and you’ll run the risk of running out of money.
¯ Because women typically live longer than men, a women’s horizon needs to calculated to the mid-nineties, which underscores the need for exposure to equities in Boomer women’s portfolios so they do not outlive their assets.
¯ Women who do not have significant experience investing in equities should invest in Vanguard index funds, which have the smallest annual fees and offer strong protection through extensive diversification.
¯ Choose an advisor who has a legal obligation to act in your best interest (ie. act in a fiduciary capacity) so that you will not be subject to hidden fees and commissions which erode long-term investment performance.
Kerschner explained that one’s attitude toward aging significantly impacts how well they age. To avoid being consumed with regrets in the second half of their lives and to increase resilience, Kerschner offered the following tips:
¯ Invest in and strengthen relationships with family, friends and neighbors. Having a support system can help you recover from life’s challenges.
¯ Adopt a regular meditation practice, which can include sitting, walking or even swimming.
¯ Try new things. Stretching beyond your comfort zone can build confidence, help you meet others, and build new skills and interests.
¯ Become part of something. Find new ways to be in community with others.
¯ Ask yourself these three important questions: Have I given and received love? Have I lived my life and not someone else’s? Have I left the world a little better than I found it?