What Women Want: An Equal Share Of The Financial Pie
Published Friday, November 20, 2015 at: 7:00 AM EST
To paraphrase an old advertisement, women have come a long way in recent years, but there's still room for growth.
The glass ceiling for women in the workplace is being raised slowly and married women are becoming more involved in family financial decision-making. However, recent surveys suggest many women still lack confidence when it comes to investment and retirement planning.
According to Hearts & Wallets, a retirement marketing research firm, female spouses in heterosexual marriages still take a backseat to their husbands in retirement planning, with only 43 percent of wives helping formulate those plans. Yet four out of five in this group were approaching retirement age, and women, who tend to outlive men, have a particular need for good planning.
Meanwhile, women tend to be less aggressive than men in the investment arena. A long-term study by Berkeley's Haas School of Business found that men's greater confidence in their investment abilities causes them to trade more often than women. Of course, that's not necessarily an advantage, and women's greater aversion to investment risk may help avoid catastrophic results, especially when the stock market is declining.
Anyone can reap financial rewards through advance planning and portfolio adjustments. That applies to both genders.
This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.
An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.
Contributions to a Roth IRA are not tax deductible and these is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Eligibility for a Roth account depends on income. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).
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