Sixty and Single
  • Home
  • Workshop
  • Newly Single
  • Events
  • ARTICLES
  • My Story
  • Resources
  • Home
  • Workshop
  • Newly Single
  • Events
  • ARTICLES
  • My Story
  • Resources

Women & Money: Talking with the old and the young about action plans

9/8/2019

 

​By Julia Anderson

​I’ve been talking, lately, about women and money to both ends of the spectrum -- both older women, and the young.
 
On one end, I shared my short Power Point presentation with a group of 15 women over 60. At least two were in their 90s.
 
Women are not paying enough attention to retirement planning, saving and investing, I told them. And the best thing they could do for a daughter or yet better a 20-something granddaughter is to help them set up a tax-deferred retirement savings account as soon as possible.
 
After 20 minutes of me rambling on, there were nods of agreement and a few questions – one about the tax implications of Required Minimum Withdrawals from an IRA at age 70 1/2. I told her to seek help from a tax accountant. RMD withdrawals are treated as ordinary income but there may be charitable “giving” strategies directly out of her IRA that could reduce her tax bill.
 
Four attendees bought my book, “Smart Women, Smart Money, Smart Life,” and said they would be sharing it with their daughters (granddaughters).
 
My basic points: Women end up with less money saved for retirement but live longer in retirement. Half of American women over age 65 are single, on their own financially.  It is imperative that women take an active role in their retirement planning and investing, early. In their 20s!!!
 
For this presentation, I use my mother, Helen Rose, as the example of the ultimate woman investor…. someone comfortable managing her own portfolio, someone who views investing as easy.
 
Her philosophy? Buy shares in well-run profitable companies that pay a dividend of about 3 percent. Reinvest the dividend money in more shares of that company. Hold over time (20-30 years) and watch the miracle of compound interest (reinvesting dividend money) create wealth.
My mother, a farm wife, died wealthy.
 
The other side of my conversation was with a younger (early 40s) step-niece who has recognized the importance of long-term saving for retirement.

She became enthusiastic about my book, "Smart Women, Smart Money, Smart Life," a couple of months ago, then followed up by email on specific questions about how to open an Individual Retirement Account and how to invest the money inside that account for the long haul.
 
My recommendations: Start an IRA (or a Roth IRA) with an online brokerage firm, make automatic contributions to that account. Invest the money in an S&P 500 stock index fund with low (or zero) management fees. Let the money ride, reinvest the dividends.
 
Never borrow from this fund. Don’t mess with the investment formula, even if markets slump during an economic downturn.  
 
She and her husband have executed on those recommendations. But she also asked about managing short-term savings. That’s a bigger challenge because banks offer almost no interest on savings accounts or certificates of deposit.
 
I suggested buying short-term bonds in the 3-month to 9-month variety, but she will still have to save up a chunk of money to make that worthwhile.
 
For whatever reasons, my message “clicked” with this young working mom who has two young daughters and a professorial husband.

She gets it. Saving for retirement is a big deal, especially if you’re a woman.  


Comments are closed.
    Picture

    Julia anderson

    I meet women all the time who face job and money transitions and who want to do them right. It’s about building confidence and taking charge of  the future.  This is your money.  No one cares more than you do! 

    Archives

    February 2023
    September 2022
    July 2022
    February 2022
    January 2022
    December 2021
    November 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    February 2021
    January 2021
    November 2020
    October 2020
    September 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    April 2019
    March 2019
    January 2019
    December 2018
    September 2018
    August 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    November 2017
    October 2017
    September 2017
    July 2017
    June 2017
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    February 2011

    RSS Feed

    Categories

    All
    Women: Retirement Planning
    Women: Saving And Investing

Editor's note: All information provided at sixtyandsingle.com is for informational purposes only. Sixtyandsingle.com makes no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions in this information or any damages arising from its display or use.

    Follow by email

Submit