Thorley Wealth Management, Inc.Elizabeth Thorley, MS, CFP®, CLU®, AIF®, AEP®CEO & President1478 Marsh RoadPittsford, NY 14534585-512-8453 x205Fax: 585.625.0477ethorley@thorleywm.comwww.thorleywm.com

How Women Are Differentfrom Men, Financially Speaking

June 24, 2020

We all know men and women are different in somefundamental ways. But is this true when it comes tofinancial planning? In a word, yes.

Everyone wants financial security. But women oftenface unique obstacles that can affect their ability toachieve it. Let's look at some of these potentialheadwinds.

Some key differencesOn the path to financial security, it's important forwomen to understand what they might be up against,financially speaking:

Women have longer life expectancies. Women, onaverage, live 5 years longer than men.1 A longer lifeexpectancy presents several financial challenges forwomen:

• Women will need to stretch their retirement dollarsfurther

• Women are more likely to need some type oflong-term care, and may have to face some oftheir health-care needs alone

• Married women are likely to outlive their husbands,which means they could have ultimateresponsibility for disposition of the marital estate

Women generally earn less and have fewersavings. According to the Bureau of Labor Statistics,within most occupational categories, women whowork full-time, year-round, earn only 81% (onaverage) of what men earn.2 This wage gap cansignificantly impact women's overall savings, SocialSecurity retirement benefits, and pensions.

The dilemma is that while women generally earn lessthan men, they need those dollars to last longer dueto a longer life expectancy. With smaller financialcushions, women are more vulnerable to unexpectedeconomic obstacles, such as a job loss, divorce, orsingle parenthood.

Women are more likely to be caregivers. Statisticsshow that the majority of careagivers are women. Ofthe more than 40 million Americans serving as

caregivers to their loved ones, 60% are women.3Often times being a caregiver means having to workpart time or leave the workforce. Over time, being acaregiver can have significant finanial implications,such as:

• Loss of income, employer-provided healthinsurance, retirement benefits, and other employeebenefits

• Less savings• Potentially lower Social Security retirement

benefits• Difficulty with career advancement or reentering

the workforce• Increased financial vulnerability in the event of

divorce or death of a spouse

Women are more likely to be living on their own.Whether through choice, divorce, or death of aspouse, more women are living on their own. Thismeans they'll need to take sole responsibility forprotecting their income and making financialdecisions.

Women need to protect their assets. As womencontinue to earn money, become the mainbreadwinners for their families, and run their ownbusinesses, it's vital that they take steps to protecttheir assets, both personal and business. Without anasset protection plan, a woman's wealth is vulnerableto taxes, lawsuits, accidents, and other financial risksthat are part of everyday life. But women may be toobusy handling their day-to-day responsibilities to takethe time to implement an appropriate plan.

Steps women can takeIn the past, women may have taken a less active rolein household financial decision making. But, for many,those days are over. Today, women have morefinancial responsibility for themselves and theirfamilies. So it's critical that women know how to save,invest, and plan for the future. Here are some thingswomen can do:

Women today have neverbeen in a better positionto achieve financialsecurity for themselvesand their families. Whatfinancial course will youchart?

Page 1 of 2, see disclaimer on final page

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2020

Securities and advisory services offered through Commonwealth Financial Network member www.FINRA.org/www.SIPC.org , a RegisteredInvestment Adviser. Fixed insurance products and services offered through CES Insurance Agency. This material has been provided for generalinformational purposes only and does not constitute either tax or legal advice. Investors should consult a tax or legal professional regarding theirindividual situations.

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Take control of your money. Create a budget,manage debt and credit wisely, set and prioritizefinancial goals, and implement a savings andinvestment strategy to meet those goals.

Become a knowledgeable investor. Learn basicinvesting concepts, such as asset classes, risktolerance, time horizon, diversification, inflation, therole of various financial vehicles like 401(k)s andIRAs, and the role of income, growth, and safetyinvestments in a portfolio. Look for investingopportunities in the purchasing decisions you makeevery day. Have patience, be willing to ask questions,admit mistakes, and seek help when necessary.

Plan for retirement. Save as much as you can forretirement. Estimate how much money you'll need inretirement, and how much you can expect from yoursavings, Social Security, and/or an employer pension.Understand how your Social Security benefit amountwill change depending on the age you retire, and alsohow years spent out of the workforce might affect theamount you receive. At retirement, make sure youunderstand your retirement plan distribution options,and review your portfolio regularly. Also, factor thecost of health care (including long-term care) into yourretirement planning, and understand the basic rules ofMedicare.

Advocate for yourself in the workplace. Haveconfidence in your work ability and advocate for yourworth in the workplace by researching salary ranges,negotiating your starting salary, seeking highly visiblejob assignments, networking, and asking for raisesand promotions. In addition, keep an eye out for newcareer opportunities, entrepreneurial ventures, and/orways to grow your business.

Seek help to balance work and family. If you havechildren and work outside the home, investigate andnegotiate flexible work arrangements that may allowyou to keep working, and make sure your spouse isequally invested in household and child-relatedresponsibilities. If you stay at home to care forchildren, keep your skills up-to-date to the extentpossible in case you return to the workforce, and stayinvolved in household financial decision making. Ifyou're caring for aging parents, ask adult siblings orfamily members for help, and seek outside servicesand support groups that can offer you a respite andhelp you cope with stress.

Protect your assets. Identify potential risk exposureand implement strategies to reduce that exposure.For example, life and disability insurance is vital toprotect your ability to earn an income and/or care foryour family in the event of disability or death. In somecases, more sophisticated strategies, such as otherlegal entities or trusts, may be needed.

Create an estate plan. To ensure that your personaland financial wishes will be carried out in the event ofyour incapacity or death, consider executing basicestate planning documents, such as a will, trust,durable power of attorney, and health-care proxy.

A financial professional can helpWomen are the key to their own financial futures--it'scritical that women educate themselves aboutfinances and be able to make financial decisions. Yetthe world of financial planning isn't always easy orconvenient. In many cases, women can benefitgreatly from working with a financial professional whocan help them understand their options andimplement plans designed to provide women andtheir families with financially secure lives.

It is important for womento educate themselvesabout finances, makefinancial decisions, seekprofessional help whenneeded, and implementplans to ensure that theyand their families willhave financially securelives. There is noassurance that workingwith a financialprofessional will improveinvestment results.

Sources1 NCHS Data Brief,Number 355, January 20202 U.S. Bureau of LaborStatistics, Highlights ofwomen's earnings in 2018,Report 1083, November20193 AARP, The Trickle DownEffect of Caregiving onWomen, November 2018

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