Women are more vulnerable and less prepared for retirement than their male counterparts. Why are they at risk? Consider these sobering *statistics:

• • A woman with a bachelor’s degree has just 60% of the estimated lifetime earnings of her male counterpart.
  • Annual Social Security benefits collected by a 65-year-old woman are 20% less than the annual benefit collected by a 65-year-old man.
  • Women, on average, live about five years longer than men.
  • Women reduce or cut work hours to care for a child or to be long-term caregivers of one or more parents.
  • 68% of women save through a 401(k) or similar plan outside the workplace.
  • Only 37% of women who use a professional financial advisor.
  • 50% of women age 65 and older have incomes that render them economically insecure.

For many reasons, women risk a retirement shortfall, but there is much they can do to improve their retirement readiness. Women are more educated, accomplished and empowered than ever, but when it comes to investing and managing money, perceptions and perspectives may seem stuck in the past. Having the confidence to take the first step is key. Here are some other tips:

• • Get educated, saving $$$ is not enough, you have to make it grow.
  • Start saving early and make it a habit.
  • Develop a written plan that includes everything from the short term to the long term goals you want to achieve, to how you will reach those goals.
  • Maximize contributions to retirement plans while you are working, taking advantage of employer matching contributions and the magic of compounding.
  • Create a backup plan for life’s curve balls. You may have to work longer and retire later.
  • Have 3 to 6 months of expenses in savings or cash equivalent available for a variety of unexpected events.
  • Compounding interest, or interest earned on your interest, is one of the most powerful tools available to women investors. The more money you can invest, the more you can take advantage of compounding.
  • Diversify your portfolio for safety and security.
  • Be passionate when it makes sense: make socially conscious investments (impact investing), save up for rainy days, look for lower fees.

Contact Us: Lower lifetime earnings and longer life expectancies require that women be even more prepared for retirement. Investing isn’t one-size-fits-all, no matter what your gender. Age, risk tolerance and individual goals all come together to shape an investment strategy. The important thing is to not sit on the sidelines and play to the stereotypes. Studies show women have a tendency to let others make important financial decisions for them, and overall are less likely to take risks. This presents a problem when it comes to investing, which is primarily about risk and return. An advisor can help with providing education, pointing out options, forming an action plan and timeline to meet your goals, and then keeping you on course. No matter what your situation, it is never too soon to be concerned about cash flow and saving enough for retirement. Feel free to contact me, Cory Lyon, directly at 561-209-1120, with any questions regarding the right retirement strategy for you. I act as a fiduciary for all my clients.

TFG Financial Advisors, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.

*Transamerica / Aegon