Is Financial Planning for Women really necessary?

By Wouter Fourie

CERTIFIED FINANCIAL PLANNER® (CFP®)

Financial planning is a necessity for both
men and women

Many people neglect to plan for their retirement and death or to actively manage their wealth, but it is more acute for women than for men.

At the recent Financial Planning Association (FPA) conference in Boston, USA, delegates from across the world acknowledged that financial planning, investment, retirement and death or disability planning have in the past focused predominantly or even exclusively on men, leaving many women unaware of the need to plan for their future.

This was confirmed by recent research published in the United States, which found that the majority of women are unaware of their options when it comes to planning their wealth or for their eventual death. The research also found that most of the women they polled are unsure of their husband or partner’s investments, plans and policies for their retirement and death.

With women inclined to outlive men, it is important that they actively engage with their personal financial planning and keep track of their husband or partner’s financial portfolio as well. Actively managing your personal finances and keeping track of your partners’ portfolio is important both to protect your and your family’s legacy and ensure the health of the household.

Protecting your legacy
Your legacy may be defined in terms of the wealth that you created over your lifetime, the successful business that you leave behind or your children, and their wellbeing after you are gone.

The first step in protecting your legacy is creating your own living will. The will should be separate from that of your husband or partner and should consider your wishes for both the financial and non-financial aspects of your life. Your will can include items that range from the allocation of your life insurance policies to the custody of your children.

An equally important consideration, for women who are entrepreneurs, is to think about what happens to your business if you pass away. Entrepreneurs often forget about detail such as life insurance on their business partner(s) life or a sale contract of their share of the business. By neglecting these important plans, you leave your family with the difficulty of negotiating with business partners or creditors when you pass away.

To continue - Protecting your household