by Michele Newbern Gillis
Staff Writer
In this day and age, women are taking a greater financial responsibility in the household. John Thompson of Wachovia Securities spoke to the Women’s Council of Realtors at their monthly meeting at the San Jose Country Club last month to give them tips on ensuring their financial security in the future.
About 40 WCR members and guests attended the event to hear how women really need to step up and learn how to deal with their finances.
Since Realtors are independent contractors, Thompson said they really should start saving now to provide for their future.
He said women tend to live longer than their spouses, have a different work history and on average spend about 13 years out of the workforce at some point in their lifetime, which makes retirement planning that much more important.
“Of women age 25-54, 75 percent are in the workforce,” said Thompson. “That is vastly different than 30 years ago when it was quite the opposite.”
He said back then the women usually stayed home and took care of the children and there was only one income. These days, more often than not, there are two people bringing in income into the household.
Thompson said typically women outlive their spouses, so they need to get more involved in the finances so they can take care of themselves when they are single.
“Half of women over 65 will outlive their spouse by 15 years,” he said. “The average woman outlives her spouse by seven years. There are a number of different resources that tell us that 90 percent of women are going to have to manage their finances alone because they are single at some point in their life.”
He said it is important for women to have a plan.
Thompson gave six keys to smart investing: set goals, start now, diversify, consider stocks for potential growth, continue systematically/be disciplined/bepatient and consult an investment professional.
Other factors that affect the financial situation of women later in life are divorce, death of spouse or responsibility for an elderly parent.
“All contribute to a change in financial situation and need be planned for,” said Thompson. “You need to know what your assets are, live on less than you earn and save the rest, forecast your retirement needs and pay that retirement plan first, so you can retire early.”