I recently attended FA Magazine’s Invest in Women conference, a gathering of financial professionals from around the country who are committed to learning and exploring topics that specifically affect women.
I launched Abeona Wealth with the goal of helping women reach their financial goals and reducing the gender wealth gap. Attending conferences, reading current articles and constantly working to understand new research are important to me to help me serve my clients well.
There was an abundance of great information shared at the conference, and it was amazing to see so many women out there supporting and encouraging their fellow female financial planners and business owners. I wanted to share just a few of the topics covered that I thought would be useful to my clients and readers.
Longevity and Retirement
“Longevity” has become a buzzword of sorts as Americans are now sometimes spending 30 years in retirement – quite different from the 10 years of retirement most Americans were used to planning for.
So what are the new stages of retirement? How do these new stages require different planning? What do you want your retirement to look like? According to an Edward Jones report, the new stages of retirement are:
My goal is to help guide clients not only in answering the quantitative questions of retirement readiness but also in building the non-financial framework of a happy and fulfilling retirement.
Retirement and Happiness
As a follow on to the Longevity and Retirement discussion, we discussed ways to help move toward a successful and happy retirement. Women are generally more successful in retirement because of their social network. Interestingly, the happiest group of retirees are divorced women between the ages of 60-65.
Your mindset in retirement is important. Stay flexible and do not focus on a specific net worth number that will ensure a happy retirement. Accept that later retirement planning might involve topics that are hard to think about, like the inevitability that one spouse will predecease the other and that health will likely decline.
What does success look like for you in retirement?
As I approach my 40th birthday this year, I am what they call a “geriatric millennial.” I get a little upset at the negative connotation out there about millennials, like the assumption that we don’t work hard and want to live on our parents’ couches! I was glad to hear many positive attributions of the millennials when it comes to our generation. These included:
- Millennials are getting to the point where they need an advisor as financial situations become more complex. They have very similar goals as their “boomer” parents.
- They’re not indulgent and do not want to have a retirement like their parents.
- Millennials have lived through a lot – Great Recession, high inflation, a pandemic, a housing crash, and now a housing shortage.
- They understand that they do not have the expertise nor the time to manage their finances, and they have a fear of missteps.
We heard a market update from Chief Investment Strategist Liz Ann Sonders of Charles Schwab. Here are some notes on the short and long-term view on the economy and markets as of mid-June.
- Is this inflationary period more like the 1940’s or 1970’s? She views it as more like the 1940’s because of the large amount of government stimulus and the disruption of the goods-side of the supply chain equation.
- A recession has a higher likelihood than a soft landing as the Fed raises interest rates. We may very well be in a recession that will be announced later. Some early leading indicators of a recession are showing up like hiring freezes, fewer job openings, and layoffs. We need a freeing up of supply (including labor) and reduced demand. This doesn’t mean that the recession will be like the Great Recession though, an all too recent memory.
- Curb your 10 year return expectations to low-to-mid single digits.
- There will be a lasting effect on the economy and markets from the pandemic: remote work and digital meetings, enhanced efficiency and productivity, and a better investment backdrop as we move slightly away from a consumption driven economy.
- Overall, the US economy has a good trajectory even if we enter a recession.
Women Supporting Women
With women set to control $30 trillion dollars by the end of the decade and female breadwinner status growing every day, it’s more important than ever for women to feel in control of their financial situation.
A great way to empower yourself is by working with a financial professional to map out a successful financial plan that will help you identify and work towards your personal and financial goals.
As a female financial planner and business owner, I understand the unique financial issues that women face, and am here to help guide you to a secure financial future. Get in touch to discuss how Abeona Wealth can help you.