Weekend Economists and the Accidental President December 13-15, 2013

[Demeter]

5. Five simple steps to financial freedom for women BY [i] Suzanne McGee and Alice Finn [/i]

http://www.theguardian.com/money/us-money-blog/2013/dec/11/five-steps-financial-freedom-women?CMP=ema_565

Step 1: Confront the reality of living longer with less money

The bottom line is that our lives vary significantly from those of our husbands, sons and brothers. Women live longer (72% of those who live to 90 are women), yet we earn less; 77 cents for every dollar that men earn. Odds are that our work lives will be interrupted by prolonged periods spent caring for others – young children, aging parents or both. That interrupts our career path and is one reason women are more likely to have jobs that offer more flexibility but lower salaries. Women are less likely to have a 401k plan; when we do, the assets tend to be about half those of male peers, according to a 2010 study from the Brookings Institution.

Some of this is inevitable, and it will be slow to change, as it has been for years. It’s irrational to decide against motherhood, for instance, because it’s going to prevent us from maximizing our income and retirement savings, to put it mildly. And few of us would opt for a shorter lifespan.

Step 2: Stop hiding from your money

Step 3: Hoarding won't save you in your old age

Step 4: Put your money to work

Step 5: Ignore the naysayers

Nor do you have to put up with financial advisors who condescend to and patronize women. They still exist, but you don’t need to put up with the BS, and every year that passes brings with it more financial planners and other resources aimed specifically at the unique financial challenges facing women.

Keep hunting until you find the right support network. And remember, there is no such thing as a stupid question if you think that the answer will help you better manage your finances. After all, none of us – from the hedge fund master of the universe to the neighborhood cookie baker in her 70s – was born knowing the difference between a stock and a bond.