Thursday, November 02, 2006

Thursday Thirteen

Thirteen things about finances women need to think about

I jotted these ideas down from several different articles I've seen in the last month. With boomers starting to retire, there's a lot out there about women and finances, because the push to get women in the workplace and out of the home began around 1970.

1. Today, women are much more likely to have a successful career than their mothers or grandmothers.

2. They are also more likely to inherit wealth.

3. They will work fewer years than men because of time out to raise children.

4. They are more likely to be getting their health care through their husband’s job.

5. They have higher divorce rates than my generation, which affect their pensions and health insurance.

6. The average age of widowhood in America is 55.

7. Women are more likely to be focused on the present, and tend to postpone important decisions that will affect them 20 years from now. It's a lot more fun to plan a birthday party than read the business section of the paper.

8. Fewer than 1/2 of women have a retirement plan. That would be me until about 20 years ago.

9. Women actually prefer a female financial advisor, but there aren’t very many. No comment. I like our guy and he's younger than us.

10. Gen-Y women are often too busy paying off student loans, credit card debt and leisure expenses to worry about retirement. Gen-X hasn’t done much better. I did no retirement stuff until I was in my 40s, then I started putting the maximum allowed in my 403-b, so it is possible to catch up. But we are savers by nature and have never had a penny of credit card debt--you’re a different generation.

11. 45% of 65 year old women will live to be 90. Women should be saving $5,000 a year starting at age 25 to maintain a middle class lifestyle when they are retired. It’s called the miracle of compounding interest (and the impossible dream, in my opinion).

12. The poverty rate for elderly women is nearly twice that of elderly men (13. 1%) and they live an average of 6 years longer. Most of these women were comfortable when their husbands were still alive. Elderly widowers are more likely to remarry (someone younger) which keeps them out of nursing homes, and they have a chauffer, cook and companion. Because I have a teacher’s pension, I am not eligible for my husband’s social security--so you need to know the law when planning.

13. Uncle Sam is a poor step-father for your children, and an even worse live-in boyfriend when you're older. He’ll keep you poor and begging for life if you start depending on him. Marriage and the extended family is still the best financial and health safety net you can have--but take care of yourself.

Get the Thursday Thirteen code here!
The purpose of the meme is to get to know everyone who participates. Visiting fellow Thirteeners is encouraged! Leave a comment and I'll add your name and URL.

Visitors and visited:
Amy, BabyBlue, Barb, Barbara, Beckadoodles, Blessed Assurances, Brony, Bubba, Buttercup and Bean, Carey, Carmen, Caylynn, Chaotic Mom, Chelle Y., Cheryl, Cindy, Dane, Danielle, Darla, Dawn, Denise, DK Raymer, Domestic Geek, Dorothy, Factor 10, Faerylandmom, Expressing myself, Friday's Child, Gattina, Ghost, Irish Church Lady, It’s all about me, Jaime, Jane, Janeen, JB , Joan,, Joy Renee, Just Tug, Kate, Kathy, Kaye, Kelly,Kendra, Lady Bug, Lazy Daisy, Mrs. Lifecruiser, Lyndsay, Lynn, Ma, Mama Duck, Mar, C.A.Marks, Mary, May, Michelle, Mistress of the dark MommyBa, N.Mallory, Nat, Nathalie, Raggedy Randy, Ribbiticus, Shannon, The Shrone, Southern Girl, Sunny Days, Sunshine Blues, Susan, Tammy, TC, Test, Tigerprr, TNChick,


Darla said...

That's great advice, and very important.

Mama Duck said...

So true, what a great list! Happy TT!

ChupieandJ'smama (Janeen) said...

Great list! I'm surprised by #6, but #7 is definitely true. Happy Thursday!

Chaotic Mom said...

I'm lucky to have a good hubby and good financial planning. I don't know what I'd do for work if something happened to him. Working on that, though. Need to always have a backup plan.

I've posted my Thursday Thirteen, too. Enjoy! ;)

Anonymous said...

Great advice. I know I need to continue getting my financial house in order. It's such a slow, long process.

Courtney said...

Great informative list. I'm really surprised that the average age of widowhood in America is 55! That seems much younger than I would have guessed! Definitely guilty of #7.

Anonymous said...

My husband is already retired so from that perspective, I know firsthand how important these items you listed are.
Good advice.
P.S. I love the fall leaves and all the pretty colors on your blog.

Ghost said...

My grandmother, bless her heart, went from a solid middle class lifestyle to a lower middle class lifestyle after my grandfather passed. She had to get a part time job to pay for food and we had to finagle her hours so that she wouldn't make more than she was allowed by SS. She wasn't allowed to any of my grandfather's retirement. I do thank the stars that the company he worked for changed this so that others in her position didn't have to go through the same thing. I just wish it would have come a little sooner.

Great list and one that should be taken to heart by everyone.

Have a Happy!

Dane Bramage said...

Sage advice as always. I learn so much when I visit!

My Pastor teaches the men of our church that it is their responsiblity to plan for te care of their wives should they outlive them. I have never heard anyone ever say that before. But I have heard the horror stories of women whose husbands unexpectantly pass leaving them nothing and no one to turn too.

My T13 is up. It is #17 The Book List Edition. Stop by if you get a chance.

Anonymous said...

Wonderful TT, Norma.

Mine is here if you'd like to take a look.

Cindy Swanson said...

Wise words, Norma! That's an educational TT.

Chelle Y. said...

This is some very useful information. Thanks!

tiggerprr said...

Such useful information. I have to say when I read that average age is 55 for being widowed, that's kind of scary. I did do the math and if I'm "average" that's only 17 years away. I sure hope not, for many reasons of course.

BlondeBrony said...

Thanks for the great list of things to think about.

Happy TT!

Anonymous said...

I'm at #10! My husband and I are really bad about finances. He makes $500 more a month now since last spring and we're still broke at the end of the pay period.

Anonymous said...

Good Advice!
Thanks for stopping by my tt today...yep leaving Hawaii, gotta get closer to mommy!

happy TT!

Anonymous said...

Great advice for the young women! Wish I had thought more before I decided to stay home.

Anonymous said...

Nice list. :) Maybe it's different in Canada, but I'm a Gen-X-er, and myself, and my friends, all have RRSP (registered retirement savings plans) and obtain health insurance (to cover things like prescriptions and dental - stuff that our provincial health care doesn't cover) through our jobs. Yes, our husbands have similar coverage through their jobs, but we women still have our own.

Thanks for stopping by and have a good day. :)

Carey said...

Thanks for sharing this list. As a mother of 4 these are all things i worry about.
Thanks for stopping by my site.

Anonymous said...

Informative (and true) list!

I'm an older side X-er and haven't even begin to think about retirement. Though I need to start planning, but I need to buy house & raise my children & pay the bills!

I think it's important for females to be independent at any age. Too many of us have to be in a relationship for financial support, to be taken care of. We should have something there to fall back on so we can take care of ourselves and our children if need're right, Uncle Sam is not a good provider!

Unknown said...

Very informative. I hope I'm not a widow at 55!

Anonymous said...

very good advice. I am a stay at home mom, so if something were to happen to my husband, I would have to seriously think about what I would do. I have a little time, as I did inherit from my dad...but it wouldnt, and shouldnt be what I would be living on

Thank you for your comment on my site, I have had quite a week...and my ankle is doing well either. Thank you again

Joy Renee said...

Useful info. Especially for someone who tends to avoid the subject becuase it provokes intense anxiety. Not a helpful or mature attitude, I know.

Thanks for visiting.

Irish Church Lady :) said...

Thanks for the informative post (as always!).

kelly said...

Interesting information. As a younger married woman, it definitely gives me things to think about. I've also been reading a book called Women, Get Answers About Your Money by Carolyn Castleberry, which has been educating me on all things money related. It's been a very helpful resource and I'd suggest it for women of any age!