With women staggering in and out of work and careers that often get interrupted, it can be harder for them to accumulate assets, especially given the longer longevity rates today. These are some of the challenges women face when planning for retirement, all of which affect their 401k contributions, their Social Security benefits and many other things to help them plan successfully, says Bibi Taylor, who has written an article for Newzhawk.com about this topic. Taylor is a Wealth Manager for Ameriflex, in Santa Barbara, California.
For young people, putting money aside for retirement is harder to do but as people get older, then need to start thinking about it more and the key here is compound interest, says Taylor, as the sooner off we save, the better off we’ll be.
There have been studies that in the first year of widowhood, women leave their financial advisors on average about 70% of the time, according to Taylor, and the key being those financial relationships are established most typically between the husband and the financial advisor. “The key is to bring in women to actively participate in that relationship from the get-go,” so there’s no disconnect should something happen to the husband, Taylor says.
A woman should plan for 30 years of retirement, which is longer than what used to be the norm. Taylor says it does require special strategies when building a portfolio and at Ameriflex, they call it a “decummulation” strategy. Different from the accumulation phase when you’re building wealth, when it comes to a traumatic event, such as a divorce or the death of a spouse, you have to figure out the best way to use that income and create income off your assets, explains Taylor.
Any financial planner that uses a holistic approach will run “what if” scenarios, which may be difficult to bring up but is worthwhile, Taylor says. “Many advisors focus on the accumulation period and these pivotal points, especially for women, require unique and creative strategies to help women sustain in those long years of retirement and generate income off their assets,” she adds.
Bibi Taylor is a Wealth Manager for Ameriflex, in Santa Barbara, California. Her article on Newzhawk.com on this subject can be found here. Taylor spoke with Retirement News Today for this interview, providing online, on-demand, retirement news video content. Retirement News Today is a featured network of Sequence Media Group.