Long-term financial planning for women is a cornerstone of private pension planning for women. And what’s more, a pillar of making your own dreams and wishes come true. Basically, it’s key to financial independence. Whether it’s the beach house you’ve always wanted, a relaxed retirement, ensuring your kids’ access to higher education or planning a trip around the world — dreams and wishes couldn’t be more different. Just as diverse as are the financial situations of women and the women themselves. And yet they all have one thing in common: without financial planning, women cannot make their dreams come true. This is why the entire aspect of financial planning for women, the goal setting, and knowledge about investments is so important. And it takes just 5 easy steps to achieve.
Private Pension Planning For Women In 5 Steps
1. Set Your Goals And Dates
Are you planning on retiring in 30 years at age 55? Or do you want to grant your daughter in elementary school access to higher education within the next 15 years? Maybe you want to buy a new car in 2 years time or purchase your dream house in 5?
Once you’ve outlined these goals as clearly as possible and have a tangible idea of what you want to achieve within which period of time, soon the ideal investment mix for you and your personal risk profile will emerge from this long-term financial planning for women.
2. Assign A Monetary Value To Each Of Your Goals
In order to fund a house or a new car, you’ll need seed capital. So, if you’re planning on buying a home in 5 years, you’ll need around 20% of the purchase price as equity by that point in time. Thus, think about how much money you’d need to spent on your dream house and set 20% of that sum as a long-term planning goal.
Your pension and your children’s education might be further in the future. That’s why you do not only need to invest your fortune smartly until then, but also secure your life, your assets, and your liabilities.
3. From Financial Planning For Women To Mixing Investments
With the knowledge of how much money you need to save within which amount of time in order to achieve your goals in view, it’s time to confront the choice of investments by means of which you will be able to save the money.
Take the car purchase in 2 years, for instance. In this case, we recommend you avoid higher risks. So, stocks or debt funds are definitely not the investment type you would want to choose. Instead, look into liquid assets or short-term bonds to save up for that sort of goal.
In order to realize mid-term goals, you could invest in bonds or — even better yet — ETFs. But with long-term goals in mind, financial planning for women should also consider investing into stocks. If you want to make your that your ideas match the investment mix, talk to our financial and investment experts. They’ll help you to find and allocate an investment mix that perfectly suits your needs, goals, and risk tolerance:
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4. Map Out A Systematic Investment Planning
If you want to determine your investment mix, it won’t suffice to only estimate your funding requirements. A carefully considered financial planning for women stipulates a systematic investment planning. This not only allows an easy synchronization with your income flow and, hence, takes out the pressure, but also to gauge the cost average over your financial planning’s set time period. This way, you don’t have to worry about rising and falling rates and indices all the time.
5. Revise And Monitor Your Long-Term Financial Planning
Do your yields still correspond to the long-term financial planning for women or don’t they meet your expectations and the market forecasts? Have tax provisions changed and you need to adjust your portfolio? Could certain inflation predictions, stock returns, and yields not keep what they had promised?
Take a look at least once a year to check whether your investment portfolios develops as planned. If it doesn’t, re-balance your investment mix. And don’t worry! If that’s all Greek to you, our financial experts for investments and asset management here at FinMarie will help you out with mentoring and re-balancing your investment portfolio. They’ll inform you, if developments don’t go as planned and coordinate further undertakings with you, in order to bring your investments back on track:
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The Advantages Of Long-Term Financial Planning For Women
On average, women are financially less educated and less well positioned than men. This results in women suffering from sorrows and financial hardships more than men — and these worries, according to researcher at Princeton University, compromise concentration, have us make mistakes, and can even worsen the economic distress. Private pension planning for women and taking smart action is the only thing that saves us from making mistakes and that economic downward spiral.
But financial planning for women does not only positively affect their economic position and (mental) health. Due to financial planning, women can also benefit from tangible and practical advantages that come along with it. If nothing else, this means that especially women from a precarious or financially unstable background can benefit from a smart financial planning for women.
- A long-term financial planning for women means they don’t have to constantly check on their investments’ development. Basically, you can let your money work for you, while you’re enjoying life.
- The big advantage of financial planning for women is the aspect of continuity. The longer your money is invested, the better you can compensate downticks and short-term losses in value over time.
- If your living circumstances change or you might need to quickly access your assets, reallocate them early into a safer type of investment. In order to be as flexible as possible from the beginning, talk to our experts about accumulation plans and ETF investments:
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Long-term financial planning for women conveys confidence and security, provides senses of achievement, and creates the basis for women to eventually become financially independent. If you want to find out more on private pension planning for women, what investment possibilities there are, and which exciting revelations the investment matrix holds, subscribe below and receive every FinMarie blog post via mail: