Financial Planning for Women

In essence, financial planning is a step-by-step approach to your finances aimed at achieving your life goals, basically a guide for life’s journey. The process of financial planning gives you more control of your finances because it organizes everything you have and looks at what you need to achieve your goals by analyzing your income, expenses, and investments.

Some of the components of financial planning are:

• Cash Flow Management and Budgeting
• Personal Risk Assessment Review: Life Insurance, Long Term Care and Disability Insurance
• Longevity and Retirement Planning
• Investment/Portfolio Evaluation and Management

Historically, women have been underserved by the financial industry. However, every woman must have a clear understanding of both her and her family’s finances. Data shows that eight out of ten women will be responsible for managing their family’s finances at some point in their lives. On top of that, the average age of widowhood is 56. 

At Hamada Wealth Management Group, we firmly believe that women need to understand and be knowledgeable about their finances to build financial security for themselves. We encourage women to seek financial planning early and often. Life changes rapidly, and having a plan can help insulate you against the unforeseen. It’s important to remember that life changes can affect your financial freedom and retirement in the future.

Financial planning for women is essential to a healthy retirement. On average, women have 50% less in their retirement accounts than men.¹ This does not mean women are bad at saving; in fact, they are typically better at saving, more likely to have a 401(k), and even save up to 16% of their income. The gap in savings is essentially the income gap. Women typically earn less than me and are therefore not able to save at the same rate. Women also take more time away from work to raise children or care for elderly parents, reducing income.

Financial planning is essential for women because of these facts. There are plenty of things that can make saving hard, but by educating themselves and learning how to make their money work for them, women can empower themselves and help close the retirement gap. Women can get the most out of their savings by saving smarter, and that is where we can help.

Divorce

Financial planning is critical for women during a divorce. Many women rely on their husbands to manage finances, save for retirement. However, after a divorce, women may be left with little in savings. Even in an equitable divorce, where marital assets are divided equally, women are often left back at the beginning when it comes to the ability to save for the future.

Women’s role as caregivers can cause increased financial burdens post-divorce, especially when young children and aging parents are part of the equation. When a woman’s role as a caregiver is a dominant one, they are left with less time to earn money and save.
While even the most amicable divorces are complicated, rest assured that our team at Hamada Wealth Management Group can help you navigate the financial aspect of your divorce and your financial future post-divorce. We are your partner in creating a stable and positive financial foundation for you and your family.

Lack of Investment Knowledge

Even though women are great savers, they are less likely to invest the money they are setting aside. Studies show that women consider cash on hand for emergencies is a priority. However, investments can be an opportunity to increase capital that can cover cash needs while establishing an investment portfolio. At Hamada Wealth Management Group, we encourage women to balance their needs for cash on hand because this can keep money out of the market that could be working for you and potentially earning you even more money!

Our goal is to educate and empower our female clients to overcome financial insecurity and take charge of their money. By doing this, they can put more money to work for them in various financial and investment vehicles. We specialize in financial planning for women, and we understand your unique concerns and can show you how to rest easy and make the best financial choices possible.