Questions and Answers from My Spot on Your California Life on ABC 1o Sacramento…
Why is financial advice rarely “one size fits all” when it comes to women and finances?
Every woman’s situation is unique so there are many variables which need to be taken into consideration. Goals, age, assets, debt income and expenses. It’s important to consider her lifestyle she has now and what she wants it to be like in the future. Very rarely do women want less when it comes to lifestyle.
How are rules of thumb helpful?
Rules of thumb are better than nothing and can be helpful as a guide when just getting started with saving, investing or getting insurance. For effective and efficient strategies a smart approach is to get professional advice early and often so that you potentially avoid making mistakes or wasting time, both of which can be costly.
What role do values play in a woman’s financial situation?
Values play a huge role in a woman’s satisfaction and level of happiness. I believe she should be getting advice that applies to what she values and prioritizes.
What about the advice that financial celebrities offer?
Is the advice relevant? As you listen to financial celebrities and the advice they’re providing to millions of people and ask yourself, “How does this apply to me?” Your situation is unique and therefore, the actions you take should be unique to you.
It’s smart to seek the advice of a professional who can help you especially when you’re in the position of knowing WHAT to do, yet not knowing HOW or WHERE to start.
What holds women back from asking financial questions and how does that impact them?
While time or lack of time is often cited as a reason for not getting advice, I’ve found that it’s deeper. There is a huge amount of negativity that surrounds money from shame, embarrassment, frustration and guilt to stress and feelings of overwhelm. Fear of judgement can hold many women back. Fear of knowing the truth or having less freedom with their money can hold them back.
Understand that when you work with financial professionals, you are creating your own financial team. You don’t have to know everything. It isn’t all on your shoulders. You don’t have to figure it all out on your own.
What I’ve found is that when women learn their financial truth it is freeing. With clarity they discover that they actually have choices which is liberating.
What about DIY investors, how can they benefit from getting a second opinion?
If you want to know if you’re on the right track, a CFP® will be able to analyze your situation and offer a thumbs up if you’ve got all of your bases covered. If you don’t, they’ll give advice on you the gaps in your situation and offer advice on how you can make improvements like making sure your portfolio is optimized for tax efficiency, who wants to pay more than they have to in taxes? Also, that can identify areas where you may be leaving money on the table by being too conservative or missing out on your employer match. Advice specific to addressing risk is highly important. Wealth management isn’t about just investing to build and grow your portfolio. It’s about asset preservation too. You don’t want to be in a position where an unexpected event depletes your net worth.
What role does accountability play?
I believe that finances are just as important as your health. Like you do at the doctor and dentist, book your next appointment with your financial planner before you leave the meeting. It will keep you on track for doing your homework and implementing your planner’s advice.
