Are You Confident in Navigating Your Finances?
This is the first article in our series Women and Wealth: Taking Control of Our Financial Futures.
As a busy woman, you’re juggling a multitude of responsibilities with limited time in the day. Whether it’s a thriving career, family obligations, volunteer work, caring for elderly parents, or a combination of these, your plate is full. It’s no surprise that financial and tax concerns might take a back seat. However, it’s crucial to understand and be involved in your family’s financial situation. Whether you find yourself allowing your spouse to “handle it,” or you are afraid of appearing uninformed about financial matters, in this comprehensive series, we’ll explore the key reasons why being involved in your own finances, including tax planning, is so crucial. We’ll also present tips for navigating different scenarios, as well as methods for achieving true financial independence.
By understanding your financial situation, you’ll be empowered to make informed decisions that benefit both yourself and your loved ones. Get ready to take charge of your wealth – read on to get started on your journey to financial knowledge.
Why should you be involved in family finances?
In the U.S., 70% of investable assets are controlled by baby boomers (those born between 1946 and 1964). This amounts to $30 trillion dollars of financial assets.1 Despite efforts to narrow the gender gap, men remain the key financial decision-makers in two-thirds of affluent households.1 Yet, actuarially, women are consistently outliving their male counterparts. By 2030, women are expected to control much of this wealth – understanding your finances and having the knowledge to make financial decisions has never been more important.
Whether you’re inheriting your parents’ assets, building your family’s legacy, or beginning your own financial journey, taking the steps necessary to understand your family’s finances is essential. Use the steps outlined below to start discussions with your loved ones and take control of your financial future.
How can you start expanding your financial knowledge and get involved in financial decisions?
To begin your journey towards financial independence, begin discussions with your partner and connect with the team who has been handling your family’s finances.
It is important for your spouse to understand why you want to be involved. The unexpected happens every day, being prepared is a necessity. Discuss your concerns, needs, and goals with your partner. It’s critical to recognize that you and your partner may have distinct goals and priorities. Open dialogue and collaboration will be necessary to align these goals and priorities and communicate them to your financial team. Your participation in financial decisions will alleviate some of the stress of going this alone for your partner, engage your spouse in meaningful conversations reducing the weight of decision-making and provide both comfort and stability during uncertain times.
If you haven’t yet met your accountant or financial advisor, it’s time to establish a relationship with them. Having a trustworthy team by your side who can assist you with navigating crucial, yet challenging, wealth-related discussions will prove invaluable every step of the way.
Take steps to gain insight into how your wealth influences your tax obligations. These two aspects of finance are directly linked, so it is crucial to have a clear grasp of their relationship. Do not hesitate to ask questions about concepts you are unfamiliar with. Friedman + Huey welcomes the opportunity to answer your questions and become part of your financial team. Contact us today to learn more.
Key takeaways –
- Gain support from your partner, financial team, parents, family, or friends.
- Join the conversation. Meet your financial team or establish a new financial team that you trust.
- Ask questions. Make sure you understand what your financial advisors are talking about.
- Understand the connection between your wealth and your tax obligations.
- Review your financial goals, understand your ever-changing needs and concerns, and consistently talk about them!
As part of our ongoing Women and Wealth series, we will explore practical solutions for women navigating various financial circumstances. Our focus will range from dealing with divorce or widowhood, taking control of your own finances as you create wealth, and receiving or managing an inheritance. Stay informed and take charge of your financial future.
