While women are taking on a bigger role in family finances, there still seems to be a gap in how much they earn, work, and invest compared to men. But with women living longer than men—it’s crucial they have the tools, confidence, and knowledge to make their money last. So, we put together a quick guide to help you prepare for the expected—and unexpected—financial events in your future.
How to invest at any age.
Age: 20s
For many women, this is the point in life where you can begin retirement planning.
Consider: Thinking about how to properly balance your debt (such as student loans), and begin saving for emergencies and milestone expenses, like a new home or having a baby. This is also the best time to put the power of compounding to work for you by saving and investing for retirement, so you can start building the nest egg you’ll eventually need.
Age: 30s
As you hit your thirties, you should consider refinancing any debt you have, such as student loans or a mortgage, to help lower it.
Consider: Looking into a 529 plan—if kids are in the picture—to begin saving for their college education and take advantage of the tax benefits such accounts offer. At this point you should also increase your retirement plan savings (if it’s an option) and work toward maxing out contributions, if possible.
Age: 40s
You’re at the midpoint of your career. At this point, focus on paying off any high-interest debt. And no matter when you began saving for retirement, this is when you should make sure you’re maximizing your contributions to the plan.
Consider: Taking a look at your own personal net worth and income needs, apart from those of a spouse or partner to make sure your future is secure and protected.
Age: 50s and 60s
As you approach retirement, you should think about whether your investment allocations should be adjusted based on how soon you plan to retire. Begin getting quotes on long-term care insurance and/or life insurance.
Consider: Factoring in the role Social Security will play in your monthly income and possible new lifestyle options, such as downsizing your home. It’s a good idea to review your current retirement savings to see how much more you might need to reach your long-term retirement goals.
Age: 70s and up
You’re likely retired by now—or will be very soon. When it comes to your investments, determine whether you’d like to keep part of your investment portfolio exposed to equities for growth or conservative to leave a legacy.
Consider: Determining if it makes sense to stay in your home and maintain your property based on your expenses, or if a move might be right for you.
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This material is intended to provide information only. This material is not intended as advice or recommendation about investing or managing your retirement savings. By sharing this information, Prudential Retirement is not acting as your fiduciary as defined by the Department of Labor or otherwise. If you need investment advice, please consult with a qualified professional. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or its affiliates. PRIAC is a Prudential Financial company.
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