Issue link: http://read.dmtmag.com/i/141342
Special Advertising Section In the U.S. 60% of all personal wealth 51% of all stocks Source: Virginia Tech study are held by women In Your 40s: The Quality Decade for Investing The 40s are a time to save for retirement—not college educations "You can't rely on the old adage 'set and forget it.' Funds must adjusted according to your individual timeline." The 40s are the new 30s, says Jody Brown, financial advisor with Summit Financial Advisors at Summit Credit Union. A lot of women still have small children, and feel pressured to set money Jody Brown, financial advisor aside for family fun and education. with Summit Financial Advisors "It's admirable, but … if you're not putting money aside for retirement, you're missing a at Summit Credit Union quality decade to do so," she explains. Children, she says, are able to apply for financial aid when it comes to college. Parents, however, can't take out a loan for retirement. While Brown is in favor of saving for children's educations, she wants women to know there must be an investment balance, and regular assessment of risk tolerance. For example, a 5-percent loss that's tolerable one year, may not be tolerable the next due to changing personal circumstances. "You can't rely on the old adage of 'set and forget it,'" she says. Funds must be set—and adjusted—according to your individual timeline, situation and tolerance. Lokrantz and Brown recommend women in their 40s: While middle-aged women may predict future wealth to be passed • Make saving a priority. • Think strategy, suggests Lokrantz. "Increase from a previous generation, Brown warns them from expecting that contributions by even 1 percent a year, perhaps money to be there. The high cost of health care in later years is allocating some of an annual pay raise to retirement." depleting inheritances faster than ever before. • Take full advantage of your employer's matching fund "Other unimaginable setbacks can find a person short on savings", contributions. says Maureen Lokrantz, wealth management advisor at The Private • Realize there are savings and investment options for Client Reserve of U.S. Bank. She adds, "Peak earning years could also any work situation, whether a woman is a full-time be peak saving years." working woman, stay-at-home mom or self-employed. Brown says many women don't keep pace with the financial needs • Discuss your parents' retirement resources. Help them building for them in retirement. They may not even know what those obtain financial resources available to them so they needs are, especially during their 30s and 40s, when nursing care is the don't endanger your own financial security. furthest thing from their minds. Many women think that retirement will cost less than their current lives, but in actuality, it ends up costing more. Lokrantz recommends planning a step further, with a will or estate plan. "Small sacrifices now can make a big difference later, through compounding," Lokrantz adds. A report by the Online Training Academy tangibly explains compounding like this: If you gave up your daily cup of Starbucks Coffee in 1992, you would have an additional $520. If you put that same money into Starbucks stock in 1992 you would have $46,932. July 2013 bravamagazine.com 53