For many women, working toward financial independence is more difficult. Obstacles women face include having a longer life expectancy than men which will require more savings for retirement, spending fewer years in the workforce than their male counterparts, and taking leave more often to deal with family matters. On top of all this, many women still struggle with the gender wage gap where they will often make less than men for performing the same type of work. So how do women overcome these challenges and pursue financial independence? Below are a few tips to help get started. Determine Financial Goals and Develop a Budget to Work Towards Them This first tip may seem easy, yet many people fail to properly budget their money and find themselves unsure of where all of their hard-earned dollars have been spent. Start the budget with the basic needs that are required to survive, such as rent and mortgage, utilities, food, medical, and clothing expenses. Next, write out some financial goals and determine the amount needed to save each month to address those goals in the time frame allotted. If the budget ends with a deficit, find other streams of revenue, or determine areas where expenses may be cut back. Contribute to a Retirement Plan Even if a spouse contributes to their employer-sponsored retirement plan, contribute as well. It is important to contribute to both retirement plans to better grow your retirement nest egg and to prevent problems in the event of a divorce. If possible, contribute up to the percentage that your employer will match to get the most out of your plan. Pay Down Debt, Then Keep It at Bay One of the

Many retirees today are redefining the “golden years.” Forget about endless days of leisure. Retirees seek adventure, travel, and new business pursuits. While these changes may redefine retirement, will retirees be able to finance their plans? Today, many people age 50 and older have not begun to save for retirement or have yet to accumulate sufficient funds. If you’re in this age group and find yourself facing an underfunded retirement, it’s not too late to take charge. There are actions you can take today to help get on the right track. Here are some ideas: What’s it going to take? First, estimate how much money you will need in retirement. Once you have an idea of the amount, you can work toward meeting that goal. A good rule of thumb is that you may need 60%–80% of your current annual income in retirement. Your financial professional can help you assess the best amount for your situation. Maximize your contributions. If your employer offers a retirement plan, contribute as much as the law will allow. In 2020, those age 50 and over can contribute up to $26,000 to an employer-sponsored 401(k) plan ($19,500 + $6,500 “catch-up” contribution). Many employers also offer a company match, so be sure you contribute enough to claim this “free” money, which can add up over time. Create a spending plan. In other words, make a budget. Many people think a budget is restrictive, but look at it this way: You can spend now, or you can have the money to afford your dream adventures later. To start, it is important that you pay down debt and avoid accruing new debt. Next, examine your spending habits and

The ability to enjoy a secure retirement is an objective that many teachers and their colleagues pursue years before they leave their jobs. Many public school workers, in different positions, devote their lives to furthering the education of young people. Eventually, each must consider life beyond his or her career and the benefits offered through, and outside of, the public school retirement system. Not everyone qualifies With respect to the pensions offered in the teaching profession, each state is unique in its requirements for service. The range is normally five to 10 years, but surprisingly, over half of all incoming teachers will not qualify for their state’s retirement benefits. Only a small percentage of newly employed teachers will see a full career pension upon retirement, while the majority will only receive a small amount. In Pennsylvania, for example, data for the past ten years from the state’s comprehensive annual financial report shows that the average pension for newly retired teachers is $24,603.00. Keep in mind that this figure only reflects a teacher’s retirement earnings, not what he or she contributed to the public school retirement system while employed. In addition, the data indicates that only 36% of new teachers will be eligible to receive a pension. Further coverage Whether you are a teacher or a union employee in another position, a defined-contribution retirement plan such as a 403(b) is probably available to you. Similar to a 401(k) in the private sector, the 403(b) allows you to invest money that is taken out of your monthly paycheck. This is usually a tax-deductible contribution and the earnings on your investment are tax-deferred. Your employer may match your contribution, but if no match

Getting old is hard. Your parents’ ability to manage their own finances may decline as they age. Helping them with money matters is a sensitive issue you need to approach carefully. When you hit a certain age of your life, you may realize that one topic keeps coming up in conversations with your friends: care for aging parents. The concern isn’t just limited to health care, money management is also a big problem. Parents aren’t likely to recognize their own declining abilities, so knowing when and how to step in to help is important. Here are some tips: Watch for warning signs. When visiting your parents, take a look around the house. Are there unpaid bills piling up on the counter? If the things that are normally done are not, it may be a red flag that your parents are struggling with the upkeep. Be aware of the people in your parents’ lives. Make sure that you have a list handy of people you can contact, and keep the lines of communication open. Friends, caregivers and church members can offer insight to any changes in your parents’ behavior. Don’t forget your parents’ professional contacts, such as their attorney, doctor, insurance agent and financial professional. Be subtle. Most people have a difficult time relinquishing control over their finances. Try offering guidance and help instead of taking over their finances completely.     Suggest that you can help balance their bank statements or set up online banking and automatic bill payments. This offers an excuse to start a discussion on their financial matters and helps relieve the stress on your parents to stay on top of everything. You can also start the

Raising children without a partner can be challenging—emotionally, physically, and financially. Challenged by the work involved in earning a living and caring for children, single parents can sometimes feel that they may never break the cycle of living paycheck to paycheck. But, even if you have a limited income, you may find that simply managing your money better can alleviate some financial problems and allow you to save for the future. Consider the following steps toward becoming a financially savvy single parent: Analyze Your Expenses The first step is to take stock of your situation. What are your fixed costs? How much do you pay for housing, utilities, transportation, and childcare? If these expenses alone consume most of your income, leaving you with little money for groceries or discretionary spending, consider whether some of these costs could be reduced or eliminated entirely. If your mortgage, property taxes, and utility bills are more than you can reasonably handle, selling the house and moving to a smaller place may be an appropriate option. It may be difficult for you and your children to leave the family home, but the prospect of having more money to spend on other things may make it worth it. Similarly, it may make sense to trade in that late-model sport utility vehicle for a more fuel-efficient or used vehicle. If you need childcare while you are at work, there may be ways to reduce your costs. Daycare centers are often more expensive than programs offered by local religious institutions or YMCAs. If your children only require after-school care, a stay-at-home parent may be willing to help out in exchange for your babysitting services at other times. You

When was the last time you took steps to optimize your 401k? If it’s been a while, you’re not alone. Research indicates that only one in three Americans utilize employer-sponsored 401k retirement accounts; even those who are contributing may not be taking full advantage of potential benefits.1 Here are five questions to ask about 401k planning. 1. How are 401k Funds Invested? How does your company invest employee retirement funds? Many 401k plans allow participants to choose from a range of investment options, such as mutual funds, stocks, or bonds. Proper asset allocation helps ensure diversification. Aim for a balanced mix over a range of investment vehicles. For younger investors, a more aggressive approach may make sense, as they’ve got more time to recover from losses. For older investors who are nearer retirement, a more conservative approach may be beneficial. Either way, your investments should align with your tolerance for risk and your time horizon. 2. Does My Employer Match Contributions? Many companies will match the contributions you make to your 401k. Usually, the match is a percentage of the amount you contribute, but some employers offer dollar-for-dollar matches. Find out your company’s policy and take full advantage of it. If you don’t, it’s like you’re throwing away free money. Plus, thanks to the power of compounding interest, an employer match can help your retirement savings grow exponentially. 3. What About the Expense Ratio? Investment vehicles, such as mutual funds, often charge expense ratios. This cost is usually based on a percentage of the fund’s net assets, and it’s passed along to shareholders. Expense ratios cover operational costs such as: Administration Management Marketing Compliance Record-keeping Distribution Expense ratios cut into your returns, so look for funds with low ratios.

It’s not simply a matter of working harder; it’s much more about using your non-financial skills and talents in new ways to bring you prosperity and a greater sense of personal satisfaction. Here are five tips to follow when seeking balance in your finances.   Access to money is not evenly distributed. Take the time to understand credit scoring and how it can affect your ability to get lower-cost money — in terms of lower credit card rates, auto financing and more. Credit scores are driven off your payment history. If you pay off your credit cards and other bills on time, you will benefit from a higher credit score. But paying late has a negative effect on your score that could result in your paying more for mortgages and other big-ticket items. Home ownership has long been a way for people to build a nest egg. Even if the tax incentives may not be as compelling as they once were, owning a home is a form of forced savings that can build significantly over time.   Think like a business owner. Your greatest asset is your ability to make an income from your unique talents. Thinking like an entrepreneur — even if you have a regular job — is a critical way to survive in the 21st century, when the only certainty is change. At work, do you routinely look for new problems to solve? Are you willing to take on new challenges? As you find opportunities to apply your unique talent and skills, you are reinforcing your value to the organization. Goodwill and flexibility go a long way to creating a career path that you may never have

Similar to taking care of your personal health by proactively incorporating healthy habits and annual checkups, you can also take control of your financial health when you are proactive and engaged in managing your finances. And also like your physical and mental health, your financial health requires an ongoing commitment and focus in order to get results. Regardless of your stage in life, it’s important to establish certain habits that can put you in the position to be able to reach your financial goals, whether that’s a vacation, a college fund, savings for a rainy day or a successful retirement. There are a few universal tips to consider as you establish and maintain your financial health. Determine your financial goals: You have to know where you want to end up to know the way to get there. The goal can be as short-term or ambitious as you need it to be, at this moment in your life. Maybe it’s creating a budget to be able to have more money to save. Or maybe you’re looking ahead at what you’ll need for a happy retirement. Either way, you need to look ahead and establish the goal and create the timeline to reach it.   Create a financial plan: You wouldn’t expect to lose 10 pounds without evaluating your diet and exercise and then tweaking either of those to create results. Similarly with financial health, you need to evaluate your current financial situation, and then develop a financial plan that can help you work toward your goal. That includes the need to consider your current budget, projected income, investments and other factors so that you can create your personal roadmap to a

As retirement becomes more than just a vague future concept, you may begin to feel pressure to develop a more concrete plan for your income, your spending, your asset allocation, and your withdrawal rate. And when you’re in the banking industry, which can often be a feast or famine one, planning for retirement can involve even more variables. Below, we’ll discuss three ways banking professionals can plan for a secure and prosperous retirement. Don’t Just Have One Plan In the banking world, things can turn on a dime. One year, you may find yourself facing unexpected layoffs; the next, you could be wondering what to do with a sizeable bonus. It’s important to develop several retirement plans that can account for these unpredictable fluctuations. For example, you may want to create a retirement plan under the assumption that you’ll earn a fairly conservative baseline level of income over the next decade. Once you have this plan in place, if you receive bonuses that allow you to exceed this income, you may be able to shorten your retirement horizon by a specific number of months for each additional $10,000 earned. By having multiple plans available, you can help maintain your ability to adapt to whatever changes may come your way. Begin Expanding Your Tax Options Not all retirement funds provide the same return once taxes are taken into account. When deciding which funds to withdraw from, and when, it’s important to perform an apples-to-apples comparison by calculating the after-tax proceeds of each fund. You may find that withdrawing a smaller amount from several types of funds each year reduces your tax bill more than withdrawing one year’s expenses from an IRA, the next year’s expenses

College marks a great milestone in a child’s life. It may be the first time he or she will live away from home. Dropping off your child at college may be an experience loaded with emotions, so here are a few tips for a smoother transition. Accept that the parent-child dynamic has changed Your child is always your child, and will need you as much as ever. However, parents need to understand that their role has transitioned from “supervisor” to “mentor.” Make the move simple Do not bring the moving van. Not only will it embarrass your child, but dorm rooms just aren’t that large. Bring only what’s appropriate. Consider pre-ordering essentials (soap, bedding, shower caddy, etc.) for pick-up at a location by the school. This will save space whether your trip is by car or plane. Don’t leave “The Talk” to the drop-off While college represents a gateway to many wonderful experiences, parents will want to have a serious conversation about safety, responsible behavior, finances, and expectations about staying in touch. Do not leave it for the drop-off. It is sure to sour the moment and may rush a conversation that deserves more time and mutual dialogue. Time to learn financial responsibility Your child will need spending money. You may want to provide a debit card attached to an account that has a set sum for the full semester, or one that’s refreshed with monthly deposits. College is a perfect time to learn budgeting. Take the lead from your child Let your child have the discretion to make decisions about what to bring. However important you think a dust skirt for the bed is, try to avoid fights. Let