Is Financial Planning More of a Woman's Problem?

By: Rajesh Jyotishi

 When you think about it, women generally live longer than men based on actuarial science.  According to WebMD, in 2004, avergage life expectancy of women was 5.2 years longer than men.  Women are also the more likely to be caretakers of their husbands in later years should they need long term care or home healthcare.

Yet, when we take a look at most households in our community, and in general, women are often the least involved in the financial planning decisions. Now, does that makes sense? Doesn’t it seem like a good idea for women to be more involved in the family finances and taking part in family financial decisions?

This year as you do your year end financial planning, involve your spouse to create your financial snapshot. If the woman in your house handles your finances, get your man involved. It may not be a bad idea to let your adult children know where you stand, so they can also be better prepared to help you, should you need it.

 Your financial picture is liken to a jig saw puzzle. Even if you are not involved in putting together all the pieces, you should know where all the pieces are so that in the event you are in the position of having to make financial decisions, you can easily access the information you need to make an informed decision.

Here are 4 simple things you can do to get a good handle on your family finances.

 Calculate Your Net Woth: To calculate your net worth, first      list all of your assets, which is everything you own including your bank      accounts, investment accounts, retirement accounts, business assets, home,      personal assets and come up with a total. Next, list all of the assets that you owe which include your mortgage      balance, credit cards, loans, etc. Finally subtract your Liabilities from your assets. This will give you your net worth. By doing this, you will have a good      handle on all of the assets in your household. Review your net worth statement annually      to check your progress.

1. List All of Your Insurance Policies: Locate all your insurance policies      including life, health, auto, home, business, disability, long term care      and review your current benefits. You may want to contact your insurance agent if you are uncertain      of our benefits. It may be a good      idea to also shop around for better rates if you feel you are paying too      much.
2. Review Your Wills: If you have done your estate planning,      review your wills, powers of Attorney, living wills and get an understanding      of how your estate plan is setup. Check your beneficiary elections to make sure it fits with your      intentions. If you haven’t done      your estate planning, don’t procrastinate, get it done! It is an essential part of everyone’s      financial plan.
3. Set Your Goals: How much retirement income will you      need? How much college funding will      you need? How much net worth do you      want? Where and when do you want to      retire? Goal setting can be fun! If      you don’t know where you are going, it is difficult to get there. There are many goal setting programs to      help you accomplish this.

By doing these simple exercises, you will have a firm handle on where you are and where you are heading. If you feel stuck, get some help. Finally, once you have listed and reviewed your finances, keep them in a safe place and tell your spouse and other trusted family members, where they can find these items. If you use a safe deposit box, tell the people involved, where you keep the key and which bank it is with.   May the new day bring you all the health, wealth and happiness you desire!