How Fit Are You?

We all know as women in our fifties that it is imperative that we stay physically fit as we age because it will help us to maintain a healthy quality of life and this concept holds true for our financial fitness as well.

Next Avenue contributor Kerry Hannon stresses the importance of “financial fitness” for women, and especially for female members of the baby boomer generation, who are now entering their fifties and beyond.

Ladies we have been part of the workforce more in this generation than ever before and we are more likely to stay in the workforce longer. The full retirement age for Social Security has risen from 65 to 67, and, according to Transamerica Center for Retirement Studies’ “Fifteen Facts About Women’s Retirement Outlook,” 57 percent of women plan to retire after age 65 or not at all.

Gone are the days of having that knight and shining armor man sweeping us off our stilettos to take care of us so that we won’t have to ever work, the reality we are the ones that are working and holding it down. So let’s get smart about how we are handling our money.

Okay with all of that being said, the reality is we’re at the age where we’ve probably been thinking how we are going to fund our lifestyle once we have retired. Of course, you know your financial status better than anyone, so if you have to work well into your 70’s that is your prerogative and there is no shame in it.    

We all know that midlife is filled with a lot of unique challenges and opportunities as a woman in her fifties we are faced with so many obstacles; however, money should not be one of them. But ooooh…On the contrary, it is at the forefront of so many women.

Here are a few obstacles that we are facing as women in our fifties

1. Women famously earn 78 cents for every dollar earned by men.
2. Women are more likely to deviate from their career paths by taking time off to raise children or care for aging parents.
3. Women tend to work for smaller firms and nonprofits that may not offer to match employees’ contributions to their retirement savings plans if they offer a plan at all.
4. Women will find themselves single at some point from the age of 65 to the end of life.”

Now, that we have some facts out of the way whether you are happily married and gearing up for retirement with your spouse, or you are divorced and starting over, taking from your savings, 401k plan to make ends meet (which you should never do) is a BIG NO!

So what does this actually mean for me?

Well… this means we should be prepared to navigate the financial world on our own in our golden years.

What should a “Golden Diva” do, when you simply realized you are not as financially stable as you thought you were?

“Golden Divas,” you’re probably wondering how you can get a perfect financial plan so late in the game after your entire nest egg is almost depleted. You didn’t always put away 15% into your savings account for 10 years to build a great nesting egg.

Hey,…life happened and you had to use the money to make ends meet over the years…but you promised yourself that you would put it back into savings and get caught up when you get paid again.

Oh well…that didn’t work!

Well, it’s never too late to start investing in yourself.

6 ways women over 50 can achieve financial fitness before retirement

Let’s take a look at a financial fitness regimen for women in their 50s who are seeking to increase their financial know-how.

1. Start with the basics: Start small and pencil out a budget. Get a solid understanding of how much you are spending now because this will help you estimate how much you will need later in life. Ladies if you are working take full advantage of your employer’s 401(k) or equivalent plan. Remember to invest enough to receive a full company match if possible, after all, that is free money.
2. Do not fear the financial adviser: Golden Divas I know we tend to shy away from people getting into our finances; however, a financial adviser or certified financial planner can be a valuable resource. Check out the databases of theNational Association of Personal Financial Advisors, the Financial Planning Association or the Certified Financial Planner Board of Standards. 
3. Take care of yourself first: I know this is a hard one for us ladies because we have a tendency of taking care of everyone else, we’re the caregiver either to our children or our aging parents. Remember taking care of ourselves is an integral part of financial fitness.
4. Talk it out. It is said that a woman is more comfortable talking about sex than money with her husband or their romantic partner. Well, we better get over it quickly, because we need to be on the same page especially if we are married. You can build your investment portfolio as a team. Now, if you are not married use your discretion on how you will proceed. Check out some books about investing and managing money and Golden Divas that are mothers share the knowledge you have gain about financial planning with your daughters.
5. Advice for divorcées: You have to be smart with this one ladies negotiate hard for retirement assets over alimony if possible because alimony is taxable and that is just a short-term plan. Hum mm…are you wondering if you have a claim to your ex’s Social Security benefit? Well…you do if you are age 62 or older, were married for more than 10 years and have not remarried. Collecting this benefit will not impact what your ex-spouse receives.
6. Advice for getting back into the workforce: Check your pride at the door, because the doors are not going to swing wide open for you and you’re not necessarily going to pick up where you left off and age discrimination is alive and prevalent in the workplace. Unfortunately, that is the reality check of the matter; however, we are strong women so when we put our minds to it, we can gradually get back out there with a part-time job, we’re good at networking, and if necessary we can volunteer, do some contracting or freelance work to fine-tune our skills.  

Ladies, what is your financial fitness regime? Do tell!

http://www.pbs.org/newshour/updates/kerry-hannons-advice-women-keep-financially-fit-50s/

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