{"id":3684,"date":"2014-03-28T07:12:38","date_gmt":"2014-03-28T11:12:38","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=3684"},"modified":"2014-03-28T07:12:38","modified_gmt":"2014-03-28T11:12:38","slug":"shrewd-money-advice-for-women-over-50","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=3684","title":{"rendered":"Shrewd Money Advice for Women Over 50"},"content":{"rendered":"

\"Guide<\/a>Carrie Schwab-Pomerantz dedicates her new soup-to-nuts personal finance book,\u00a0The Charles Schwab Guide to Finances After Fifty<\/a>,\u00a0<\/em>to \u201cChuck, who I am proud to call Dad.\u201d<\/p>\n

Chuck, of course, is the founder of the Charles Schwab brokerage firm. His author daughter is president of the Charles Schwab Foundation and senior vice president at Charles Schwab & Co. For the last 10 years, Schwab-Pomerantz, now 54, has been answering readers\u2019 money questions in her syndicated column,\u00a0Ask Carrie<\/em>. The column is the genesis of her book.<\/p>\n

Although her primer is a useful guide for both sexes \u2014 covering everything from\u00a0retirement saving<\/a>\u00a0to\u00a0long-term insurance<\/a>\u00a0\u2014 I recently spoke with Schwab-Pomerantz to get her advice specifically for 50+ women.<\/p>\n

(MORE<\/strong>:\u00a0Surprising News About Finances of People Over 50)<\/a><\/p>\n

Before I share highlights of our conversation, I want to mention one of my favorite tips in her book, about\u00a0estate planning<\/a>.<\/p>\n

She writes that if you want to hand over to your adult children part of their inheritance while you’re alive, consider giving them assets you think have the highest probability of appreciating in the future \u2014 for example, a growth stock or real estate \u2014 instead of cash. That way, you\u2019ll reduce the size of your estate by the current value of the gift and lower future estate taxes on the asset\u2019s appreciation.<\/p>\n

(MORE<\/strong>:\u00a0Why the Good News About Retirement Isn’t So Great<\/a>)<\/p>\n

Here\u2019s a spoonful of Schwab-Pomerantz\u2019s money advice for women in their 50s and 60s:<\/p>\n

Next Avenue: What characteristics help women succeed at managing their finances after age 50?\u00a0<\/strong><\/p>\n

Schwab-Pomerantz:\u00a0<\/strong>I think that managing your money isn\u2019t that different than managing any other part of your life.\u00a0Doing it successfully \u2014whether you\u2019re a woman or a man \u2014 requires maturity, a clear sense of priorities, the confidence to make decisions and a willingness to follow through.<\/p>\n

Many studies have shown that women have an advantage over men in the\u00a0confidence<\/a>department; we are less likely to suffer from overconfidence.\u00a0We have more of an appreciation of what we don\u2019t know and are more likely to ask questions and dig for the correct answer before forging ahead.<\/p>\n

What are the biggest money mistakes women this age make?\u2028<\/strong><\/p>\n

A common mistake is to not give our retirement savings a high enough priority.\u00a0Often we care for our families before we take care of ourselves.<\/p>\n

So as an example, we shouldn\u2019t let saving for our child\u2019s college derail our own\u00a0retirement security<\/a>.\u00a0Otherwise, we may become a burden on them later on.<\/p>\n

Another mistake is to defer to our spouse or significant other when it comes to financial decisions.\u00a0I firmly believe that both members of a couple must have complete knowledge of their individual and shared finances, and participate fully in all significant decisions.<\/p>\n

How do women do relate differently than men to\u00a0financial advisers<\/a>?<\/strong><\/p>\n

This is just a generalization, but some women, especially those who have a history of deferring to a parent or a spouse, may continue this behavior with their adviser.\u00a0They may be reticent to ask questions and demand satisfactory answers.<\/p>\n

On the positive side, many women are collaborators by nature, so they have an innate comfort level receiving advice and having an ongoing dialogue about their money. And many women are comfortable doing what I call \u2018thinking with their heart.\u2019\u00a0That\u2019s a talent for understanding big picture, long-term goals.\u00a0This is exactly the attitude we should bring to our relationship with a financial adviser.<\/p>\n

Many women in their 50s and 60s have the \u2018bag lady<\/a>\u2019 syndrome. They\u2019re afraid of losing all their money and tend to go for \u2018safe\u2019 investments. How can they combat that?\u2028<\/strong><\/p>\n

You\u2019re correct that many women are more conservative than men by nature, but often that works to their advantage. They\u2019re less likely to swing for the stars.<\/p>\n

When a woman is behaving too conservatively, however, it\u2019s mostly a matter of education.\u00a0Her adviser simply needs to explain the necessity of owning stocks as a buffer against inflation.\u00a0It\u2019s not rocket science.<\/p>\n

I loved this question from your book: \u2018My husband has no interest in our finances. How can I get him more involved?\u2019 \u00a0How common is this?\u2028<\/strong><\/p>\n

Anecdotally, I would say it\u2019s far more common than we realize.<\/p>\n

More and more, women are stepping up to the financial plate.\u00a0Speaking personally, I\u2019m far more involved than my husband [Gary Pomerantz, an author, journalist and visiting lecturer at Stanford University] with our finances.\u00a0And many of my friends and colleagues report the same.<\/p>\n

Your book features two questions about women feeling at sea about money: \u2018My husband of 50 years has just died. How can I manage?\u2019 and \u2018I’m 50 and contemplating divorce. My husband has always\u00a0been in control of our money. How can I cope?\u2019 \u00a0What\u2019s your advice for women like this?<\/strong><\/p>\n

I go back to my \u2018everyone needs to learn how to swim\u2019 analogy.\u00a0 We\u00a0all\u00a0<\/em>need to be on top of our finances.\u00a0It\u2019s a basic survival skill.<\/p>\n

Kerry Hannon has spent more than 25 years covering personal finance for Forbes, Money, U.S. News & World Report and USA Today. Her website is\u00a0kerryhannon.com<\/a>. Follow her on Twitter\u00a0@kerryhannon<\/a>.<\/div>\n

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