BUSINESS & FINANCE :: OCTOBER/NOVEMBER 2007

Becoming a Money-Wise Woman

Presented By: Kenna M. Ulbinsky-Yakal

Five Simple Steps to Boost Your Financial Confidence

Are you confident about your financial future, or simply being cautiously optimistic in the hopes that things will all somehow “work out?” If you find yourself in that latter category, you’re in good company. According to a recently released study by Prudential Financial, Inc., entitled Financial Experience and Behaviors Among Women, a whopping 67-point gap exists between women’s confidence levels and the importance they place on maintaining their lifestyle during retirement. The study went on to identify that overall, whether the subject was reducing personal debt, being financially secure upon outliving a spouse, or securing long-term health or nursing home care, women tend to have clear financial priorities, but low confidence in their ability to achieve them.

Good Intentions, Lack of Action

Prudential’s survey pinpoints an important fact: a notable disconnect exists between what women know they should do and what they actually do in relation to their personal finances. For many, feelings of being overwhelmed by short-term priorities such as caring for children or aging parents, working outside the home, and community commitments can cause important long-term financial planning to be put on the back burner.

Financial Ignorance is Not Bliss

One of the best moves you can make right now is to become familiar with basic financial planning. Confused about mutual funds? Unsure about life insurance options? Whether you are married, widowed, single, just out of college or nearing retirement, today is the day to begin prioritizing your goals and upping your financial planning IQ:

Know Where You Stand and Where You Want to Go. Invest in some user-friendly financial planning software and start reviewing your records. Know where your money is invested, how much debt you have and where important insurance policies are stored (and what they actually cover). Next, make a list of areas of interest that you’d like to learn more about, such as annuities, stocks and bonds, long-term care insurance and IRAs. Have this information handy when you meet with a financial planner.
Meet With a Financial Planner. Since what you don’t know can hurt your future, admit you are ignorant on certain financial matters and seek help. Ask friends and colleagues for referrals and look for someone who specializes in financial planning for women. When you interview candidates, make sure the planner listens to your concerns and answers questions thoroughly.
Insure Your Future Security. Carefully review your life and disability insurance needs, especially if you are the primary bread winner in the household. Term life insurance can, at the very least, help protect a family from the devastating loss of a wage earner during the period that the policy is in force. Also, be sure your estate plan is set up to provide for you in the event your spouse dies first, and ask your financial advisor if long-term care insurance is right for you.
Max Out Your 401(k). You’ve heard this advice before. If you have yet to heed it, start now. It really is one of the easiest, smartest things you can do to help prepare for retirement.
Make a Will or Estate Plan. Many women make the mistake of not creating a will, leaving loved ones to deal with the hassle and expense of probate court. A will leaves no doubt about what should be done in the event of death and helps protect your assets for future generations. The annual Prudential study indicated that only one in five women feel very well prepared to make wise financial decisions. Taking action now can place you in the financially-confident minority, and help put you on the road to retirement security.

Kenna Ulbinsky-Yakal is a Financial Services Associate with The Prudential Insurance Company of America’s Penn-DelMar agency located at 200 Continental Drive, Suite 104, Newark, DE 19713. Securities are offered by Pruco Securities, LLC (member SIPC). Each is a Prudential Financial company. She can be reached at kenna.ulbinsky-yakal @ prudential.com and 302-894-1689 x2247. She can provide the insurance and financial products for your planning needs.