Financial Well-Being for Women

Nine out of every ten women will be solely responsible for their financial well-being at some point of their lives, according to the U.S. Census Bureau. Women represent half of the workforce, 42% of people with assets exceeding $600,000-and they're expected to account for half of successful business owners in the new century.

But women often face additional challenges-leaving work to raise a family, living longer than ever before, and being more vulnerable to financial catastrophes. Since women still earn only 68 cents for every dollar men receive in similar professions, it's more likely that women will retire with inadequate resources. But fortunately, as with investments, getting started early pays off in the long run.

Start with a safety net. Establish reserves of three to six months of living expenses in savings or money-market funds. Get to the point where 35% or less of your income is paying off debt; your first priority is to pay off high-interest debt like credit cards. Make sure your life insurance covers at least two years of income.

Calculate your net worth. This figure doesn't represent your worth as a person-but it's a figure you need to know. And while the number may be disappointing at first, it gives you a snapshot of your financial picture that will improve with experience and success. To do this, add up the value of all your assets (real estate, vehicles, collectibles, savings, and investments) and subtract your liabilities (credit-card balances, car and college loans, mortgages, etc.). Include your mortgage only if you listed your house as an asset.

Control your cash flow. Start analyzing your cash flow by writing down all income (salary, interest income, commissions, dividends) and all expenses, including the essentials (like housing, clothing, food and taxes) and the non-essentials (like eating out).

Define your financial objectives. Identify and prioritize your short- and long-term goals.
Examples include:

Period	Goal
Short-term (next 3 years)	Down payment for a house
Medium-term (3-7 years)	Funding a child's college education
Long-term (over 7 years)	Funding a secure retirement

Develop a solid investment and retirement savings plan. Women may spend 25 years or longer in retirement, so outpacing inflation with accrued investment returns is especially important. This can be accomplished by maximizing retirement-plan contributions, spreading or diversifying your investments among different types of securities, and taking advantage of mutual funds. Plus, systematic plans allow you to invest over market cycles and compound the value of your investment over time.

Many women invest too few of their assets in stocks and can end up with a plan that doesn't offer the growth potential to meet their needs. Your Financial Advisor can help you understand the risk/reward potential of your investments and develop a plan that fits your individual comfort level.

ENB Associates Inc. is a wholly owned subsidiary of Evans National Bank. Securities are offered by O'Keefe Shaw & Co., Inc. Member NASD, and SIPC. Products purchased through O'Keefe Shaw may lose value, are not deposits with obligations of, or guaranteed by Evans National Bank or affiliates and are not insured by the FDIC.

Our firm does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences.