By Robin Applegarth CRPC®
Are you at risk from these perils? Warning: Halloween theme!
Women are more vulnerable to poverty than men. Read some of these scary facts about money that plague us. Then visit the rest of the website to find solutions and build more financial security into your life. (The Scary Facts page was launched for Halloween, but these spooky facts follow women year around.)
Women often leave money matters to the man in their life. This bodes ill if they need to manage on their own at some point. If you’re married or in a relationship, don’t be a “silent partner.” Learn something new regularly and help guide your finances. It’s never too late to find your voice.
Scary fact: Many women turn over the management of their money to someone else, and end up unprepared. 85% of women will live alone at some point and need to manage their own finances.
Don’t let pirates steal your treasure. Beware of places to put your money that charge high fees. When you keep a credit card balance that charges more than 20% interest, you’re paying to walk the plank. At 25% interest, the pirates are keeping one out of every four of your gold coins. Guess who’s getting richer off of you?
Also avoid investments that charge high fees. Choose index mutual funds or Exchange Traded Funds (ETFs) for lowest costs. Un-scroll those documents and read the fine print to know what you’re being charged.
Scary fact: Investing in mutual funds with higher expense ratios can cost thousands more in fees over a 10 year period. Choose no-load mutual funds and low-cost Index funds to reduce investing costs and keep more.
If Social Security is all you can count on, you’ll be scratching around to make ends meet. Always contribute to employer retirement plans like 401(k)s, and get the match. Save in an IRA and get tax-free or tax-deferred earnings. Don’t let poverty stalk you when you retire. Read TheSilverPurse.com to find solutions.
Scary fact: 66% of all working women earn less than $30,000 a year in jobs with no pensions. 59% of U.S. households have no IRAs. Finding financial solutions becomes extra important when your resources are limited.
Sleeping beauty could have bought her own castle when she woke from her sleep of many years. All she needed to do was invest something first. (Too bad she didn’t know about investing.) The prince would have been dazzled by her brains as well as her beauty.
While the forest grew over her, her money could have been earning interest and growing too. This is a magical process called “compounding.” Over time, the earnings grow larger than the contributions. Take advantage of compounding, and you’ll have the keys to a royal future!
Scary fact: Few women know about the power of investing and compounding. It benefits those who plan ahead and give their investments decades to grow.
The crystal ball shows how the creatures of the forest squirrel away nuts and seeds in case the snow falls deep and no food can be found. The people would be wise to save for their future needs too.
Scary fact: Many Americans have inadequate emergency funds, which makes them more vulnerable to losses. Start your own “Comfort-cash fund” for peace of mind. Your future is in your hands–make it a secure one.
Robin is founder of The Silver Purse LLC.