By Michael Russo
Does talking about money typically make you sweat? If so, don’t worry—this won’t be one of those snooze-worthy finance discussions. As a financial advisor, I’ve witnessed the impact that being a financially savvy investor can make.
Let’s dive in, because there are important financial questions you should consider at every age and every stage of life.
Financial Questions Women Should Ask in Their 20s
Your 20s are a time of exploration and adventure. It is also a great time to set the foundation for your financial future. Here’s what to ask yourself:
- How do I start building credit?
- If I marry someone, should I keep my finances separate from my partner’s?
- Should I go with a 401(k) or a Roth IRA?
- How do I create a well-balanced budget?
- How much should I save for my emergency fund?
While retirement may seem like a lifetime away, it’s never too soon to start saving, especially since women usually need to save more than men for retirement. It’s also wise to prepare for unforeseen financial needs, such as car repairs, medical expenses, or sudden job loss. That’s where your emergency fund comes into play, a good amount being three to six months of living expenses.
Financial Questions Women Should Ask in Their 30s
For many women, their 30s are a decade of career growth, starting a family, and buying their first home. If you have similar aspirations, you should be asking yourself:
- How much should I be saving for retirement now?
- Will being a stay-at-home parent hurt my future financial stability?
- Is it time for life insurance or a will?
- How can I intelligently manage my debt?
You should also educate yourself on financial management best practices. There are plenty of great financial books that can provide practical tips based on your unique goals and financial challenges.
Financial Questions Women Should Ask in Their 40s
Your 40s can be a power decade. You’ll likely be more established in your career, and if you have children, they will be more independent. That means you might have a little more free time than you did in your 30s.
But don’t get too relaxed. Instead, stay on top of your financial game by asking:
- Am I on track for retirement?
- If my marriage is unstable, are there financial decisions I should be making just in case?
- How should I be investing my money?
- What about college savings for my kids? Can I save for retirement and save for college?
If you feel like you are behind, don’t worry. There is still plenty of time to get back on track. But you need to get on top of things so you can enjoy your 50s and 60s.
Financial Questions Women Should Ask in Their 50s
Your 50s are a time to fine-tune your financial plans. If you started planning for retirement early, you should have a sound foundation. If not, you’ll have to hustle a bit more to catch up. Here’s what you need to ask yourself:
- What’s my plan for healthcare costs?
- Should I adjust my investment risk?
- When will I retire, and what will it look like?
- What is the best way to care for my aging parents without impacting my financial future?
Your 50s are all about timing. For example, this isn’t the time to take risks with investments—the last thing you want to do is take a step backward when you’re so close to the finish line.
You should also start visualizing your retirement. While it may still be several years away, picturing your life after work can help you stay motivated and focused. Get creative and specific; think about where you want to live out your golden years, what your ultimate goals are, and how you’ll keep busy when you’re no longer spending so much of your time at work.
Financial Questions Women Should Ask in Their 60s
The majority of women retire between 62 and 63 years of age. If you plan on doing the same, you’ll need to ask questions like:
- Do I have a sustainable withdrawal strategy for retirement?
- How do I manage my retirement income and taxes?
- What’s my plan for potential long-term care needs?
- If I become a widow, how best can I prepare for that?
- When should I take Social Security?
Take the Next Step
According to the United States Census Bureau, women are more prone to having no retirement savings compared to men. But here’s the silver lining: you can do something to shift away from this concerning trend.
At Millstone Financial Group, we focus on empowering women like you to gear up for their next big journey—retirement! Whether you’re seeking answers to financial questions or searching for a seasoned financial team to steer you toward your goals, we’re here and enthusiastic to help you at every step of your life journey.
Schedule a complimentary consultation by calling (732) 385-8544 or emailing [email protected].
Advisory services are offered through Millstone Financial Group Limited Liability Company, a Registered Investment Advisor in the State of New Jersey. Insurance products and services are offered through Millstone Financial Group Limited Liability Company.
All material discussed is for informational purposes only. Opinions expressed are solely those of Millstone Financial Group Limited Liability Company and staff. All topics covered are believed to be from reliable sources; however, Millstone Financial Group Limited Liability Company makes no representations as to its accuracy or completeness. Investing involves risk including the loss of principle.
This article shall in no way be construed as a solicitation to sell securities or investment advisory services to residents of any state other than New Jersey, or where otherwise permitted. All information and ideas should be discussed in detail with your individual adviser prior to implementation.
This material is intended to provide general financial education and is not written or intended as tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
