Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
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18 UCW APRIL 1-7, 2015 WWW.UPANDCOMINGWEEKLY.COM Are women and financial strategies a mismatch? Not necessarily. But everyone needs more education about financial strategies and retirement options. Although 90 percent of women say they are the chief bill-payer and shopper at home, more than 70 per- cent believe they are behind schedule when it comes to saving for retirement. A full 60 percent say they haven't tried to calculate how much they need to save in order to live comfortably in retirement. These figures suggest that most women don't shy away from the day-to-day financial decisions needed to run a household, but when it comes to projecting and strategizing for retirement, some women may be leaving their future to chance, and they cannot afford to do that. The reason behind this disparity isn't a lack of education or independence. Women today earn more than 55 percent of bachelor's degrees awarded in the U.S., and they earn more master's degrees and doctorate's than do men. So, what keeps them from taking charge of their long-term financial picture? Research suggests that one reason may be a lack of confidence. Sixty percent of women believe their investing skills are below average. Women may shy away from discussing retirement because they don't want to appear uneducated or naïve and hesitate to ask questions as a result. Since Wall Street traditionally has been a male- dominated field, women whose expertise lies in other areas may feel uneasy amidst complex calcula- tions and long-term financial projections. The vast majority of people retiring today, and in the future, do not have pensions and will rely on their 401K. But, 401Ks were not set up originally to become the primary retirement vehicle, they were only meant to be a supplemental plan. The Benefit Research Institute has data on more than 16.5 million people with more than 45,000 differ- ent 401K plans. The average amount of money in these plans was three to four times the person's final salary. What that means is there will only be enough in those plans to cover the next seven to eight years, and then there will be nothing left but Social Security to pay the bills for the vast majority of people. Also, you will be taxed on that money and you will probably pay taxes on it at the same rate or a higher rate that you are now. There are other options out there for retirement such as permanent life insurance. Money from these policies in retirement or before can come out tax free in accordance with IRS codes 7702 and 70E. It does not affect taxation of Social Security, which in both cases will boost income. Many financial profession- als do not know the advantages of such policies since they may not be licensed to sell them. But women need to keep one eye looking toward retirement since they may live longer and could potentially face higher healthcare expenses. Another advantage of perma- nent life insurance is the critical and chronic illness riders which can help with nursing care expenditures. If you have left your long-term financial strategy to chance, now is the time to pick up the reins and take control. You cannot get started soon enough. Consider talking with a financial professional about your goals and ambitions for retirement. Don't be afraid to ask for clarification if the conversation turns to something unfamiliar. Find out about the different options for retirement. Take charge for your family and yourself. ALAN PORTER, Strategic Wealth Tax-Free Retirement Specialist, Contributing Writer. www.iflretirement. com/Alan-Porter . COMMENTS? Editor@upandcomingweekly.com. April 13 – 17 | e Fourth Annual Center for Undergraduate Research & Creativity Symposium * For more information, visit methodist.edu/research April 16 | e Second Annual Presidential Lecture Series featuring Doris Kearns Goodwin "Leadership Lessons from the White House" * 8 p.m., Huff Concert Hall, Reeves Fine Arts Building April 18 | e ird Annual Cape Fear New Music Festival at Methodist University * For more information, visit capefearnewmusic.com April 23 | Fayetteville Symphonic Band & MU Jazz Ensemble Concert * 7:30 p.m., Huff Concert Hall, Reeves Fine Arts Building April 24 | All-Choirs Concert * 7:30 p.m., Huff Concert Hall, Reeves Fine Arts Building April 24 | Davis Memorial Library 50 th Anniversary * 12:15 p.m., 50 th Ceremony and Birthday Party, Davis Memorial Library methodist.edu/community | 910.630.7000 facebook.com/MethodistUniversity 5400 Ramsey Street, Fayetteville, NC 28311 * Denotes free events Doris Kearns Goodwin Presidential historian and Pulitzer Prize-winning author Are Women and Financial Strategies a Mismatch? by ALAN PORTER Women today earn more than 55 percent of bachelor's degrees awarded in the U.S., and they earn more master's degrees and doctorates than men. So, what keeps them from taking charge of their long-term financial picture?