Women, take charge of your financial future

By Hannibal Chinchilla, Barca Financial Group

 
I recently came across a class titled "Women and Investing." This struck me as odd because investing is investing, right? Money doesn't behave any differently according to gender. Why on earth would women need a different kind of instruction on investing than men? Or I get the typical why financial planning for women only, why not men also. In my practice we dedicate more time and workshops on educational workshops for women because there is a strong interest about learning first and understanding financial terms and strategies.

As with most things, there is more to the story.

It's no secret that women earn less than their male counterparts. A recent article in Condé Nast Portfolio reported that, after narrowing in the 1990s, the salary gap is actually growing. Women earned 78 cents for every dollar a man earned as recently as five years ago. Now that's down to 75 cents and, in some professions, it's down to 70 cents, according the article.

Compounding the issue is that many women drop out of the work force for a time to raise children. Some start their careers in earnest only after their children are in school. Some never work outside the home.

While this is an absolutely wonderful thing to do, it puts these women at a significant disadvantage when it comes to building a retirement nest egg. Not only do they earn less, their careers are shorter and they don't have the time to build a solid investment framework.

As if this weren't bad enough, many women don't take control of their own finances. They leave these decisions up to their spouses or simply ignore the issue. This can have detrimental effects.

Additionally, women fall within a set of five distinct financial roles, each characterized by unique attitudes and behaviors toward money and power. These roles are: financial dreamer, financial avoider, financial initiator, financial collaborator, and financial analyzer.

According to the National Center for Women and Retirement Research at healthywomen.org, as many as 9 out of 10 women will be solely responsible for their finances at some point in their lives. More than 75 percent of women will be widowed around age 56, and 25 percent of those women will be broke within two months. Some 87 percent of the elderly who live in poverty are women.

The story to take away from all of this is that women need to be their own financial stewards. They can't rely on others to do the planning - or the saving - for them. And seek professional advice to keep them informed.

For more information and assistance, contact the Tucson Hispanic Chamber of Commerce at 620-0005 or call Hannibal Chinchilla directly at 520-429-5193 ; email: Hannibal@barcafinancial.com