Back to Matt's Two-Minute Investing Insights

Women and Retirement | From the desk of Matthew Haertzen

I know many people who are excited that we now have our first female Vice President of the United States. Congratulations, Vice President Harris! Women continue to make great strides in not only getting elected to political office but also in securing leadership positions in business. Studies have shown that companies with higher female participation at the Board level or in top management positions generate higher returns, valuations, and payout ratios.1 I think we are all hopeful that this new diversity in our government translates to a more effective administration that ultimately benefits our country.

In that spirit, I would like to focus my article this month on women and retirement.

A recent Dave Ramsey article highlighted some of the unique challenges women face when it comes to retirement.2

  • Women tend to live longer than men. Consequently, women should plan to save more money for retirement than men. They should also be prepared to manage their finances alone.

  • Women are more likely to be caregivers. Caring for aging or infirm parents or family members can be both emotionally and financially burdensome, which can be a drain on retirement savings.

  • Women, on average, earn less, are more likely to work part-time jobs (without employer retirement plans) and spend less time in the workforce. This can also lead to lower retirement savings.

  • According to the Federal Reserve, women are less comfortable, on average, making retirement investment decisions than men.3
Despite the challenges, women can take steps to improve their financial situations and be prepared for retirement.

  • Make a plan. Take some time to reflect on your specific retirement goals. Where do you envision yourself retiring? What will you do? The more details you have about your vision for retirement, the more you will be prepared to do just that.

  • Get involved. This is my advice for both women and men. If you are to be fully prepared for retirement, you must be hands-on when it comes to your finances. Have a conversation with your partner about retirement goals and strategies. Understand where your accounts are and how to access them. I know it's tempting to let one partner take care of the finances, but you should both be knowledgeable about your financial situation and on the same page. If you do not have a partner, find a trusted person to talk with about your financial situation and decisions. My article on Financial Freedom discusses accountability partners.

  • Learn about investing and ask questions. As your financial advisor, I am happy to explain anything you might not understand. As you probably know, I am also a professor at the University of Arizona and have taught at colleges and universities for years. I am an educator at heart and truly enjoy answering clients' questions and helping people understand investing.
Retirement planning can be challenging for anyone. Regardless of your own particular challenges, I am happy to help you work through the process, develop a plan of action, and feel comfortable making informed decisions.

If you have questions or if you would like to discuss retirement planning with me, you can e-mail me at mhaertzen@wtwealthmanagement.com or call (520) 204-1058.

Sincerely,

Matt Haertzen
Matt Haertzen, CFA, CFP


References:

1 Press Release
Credit Suisse | September 9, 2014.

2 How Women Can Plan for Their Retirement Future
DaveRamsey.com | October 21, 2020.

3 Report on the Economic Well-Being of U.S. Households in 2018.
Board of Governors of the Federal Reserve System | May 2019.



WARRANTIES & DISCLAIMERS

There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

View Disclosure
WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

Contact Us Today

Call us directly at 800-825-0616
or Contact us by using the contact form below:

Your message has been sent. Thank you!


Cancel