Wealth Management Advice for Solana Beach Women:

Can Your Finances Weather Life’s Major Events?

This four-part article series takes a look at the major life events women face and

how they can make plans and provisions to avoid their potentially negative financial

ramifications.

In any woman’s life, there are several major events that have the potential to totally

turn her finances upside-down if left unplanned for. Marriage, divorce, children,

retirement and caregiving are just a few. Some women will face more of these events

than others, while others may absorb more of a punch in the proverbial guts.

Regardless, however, it serves to be aware of the implications of these major life

events and how you can better plan and prepare so as to mitigate the potential

damage. First, let’s take a look at how wealth management for Solana Beach women

differs in importance and purpose to men.

Men and Women: Key Differences in Financial Strategy

There is typically a stark contrast between the approach women take to managing

their wealth and finances and the approach taken by men. The priorities faced by

women are not only substantially different, but they are by nature more cautious and

responsible creatures while men tend to be a little more reckless and aggressive.

According to the results released by several national surveys, women find financial

security seven times more important than building wealth through investing. Why?

Because this security equals the safety and well being of their families. This is not to

say that men don’t worry about their families, but they do tend to view wealth on its

own, rather than in the broad scheme of things.

Women tend to look at finance in the larger context of life and how it needs to be used

to protect and care for the family and nurture their own goals and dreams. Men are by

nature more aggressive and so we tend to take greater risks. In addition, women face

unique challenges that us men do not: they tend to live longer, earn less, spend fewer

years earning (perhaps because they take time off to care for children) and are more

likely to take custody of the children in the event of divorce.

Considering all of this, it’s not surprising that financial security is fundamentally

important to women, rather than luxuries such as building wealth through investing!

And so, with all this in mind, preparation for those major life events becomes crucial.

Let’s take a look at what these events are and the questions women should ask

themselves and perhaps their LPL financial advisors, too.

Key Life Event # 1: Marriage

With the big day drawing near, the last things on your mind is long-term wealth

management, but if you haven’t taken the time to sit down with your spouse and

discuss how you plan to manage your finances as a couple – together - you could find

yourself in for some nasty surprises! Before you take the plunge, you need to

determine whether you and your partner are financially compatible: do you share the

same goals? Do you share the same philosophies with regards to saving and

spending? Is he bringing any assets to the table, or any debt?

You need to be as aware of his financial situation as he is of yours, because you don’t

want your hard-earned savings to get sucked into the black hole of debt that doesn’t

even belong to you. Too many marriages have disintegrated over disagreements over

money management and spending, so it’s a very good idea for the both of you to meet

with a Solana Beach LPL financial advisor prior to tying the knot.

Stay Tuned for Part 2!

Coming Next Week: Children, Divorce and Widowhood

Living The Life You’ve Always Dreamed Of

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