What Actually Matters Right Now
I’ve been thinking about how overwhelming finances can feel, especially for women who, let’s be honest, balance a lot.
I know most conversations out there don’t help. They’re too technical or make you feel behind. That’s the worst type of “advice” and the reason many women are turned off from getting involved in their own financial future.
What actually matters isn’t doing more, it’s understanding what applies to you and making a few good decisions. Women often have less confidence in investing and doubt themselves. Ironically, women investors’ returns were 0.4% higher than men’s, according to Fidelity’s 2021 Women and Investing Study.
For both my younger clients just starting out and those near the end of their careers or already retired, the issue is the same. Liquidity – how much do you need? I can break this down for you with the bucket approach.
If This Sounds Familiar
If you’ve ever thought: “I should understand this better.” “I think I’m doing fine, but not totally sure...” “I don’t even know what to ask...”
You’re not alone. Most women I meet are doing a lot right; they just haven’t had time to connect the dots. Even though we have resources to start investing earlier, with virtual investing platforms and automatic enrollment in 401(k)s, we still have institutional barriers, like the gender pay gap, which means women, on average have less money to invest or save.
Don’t Add More to Your Plate
You don’t need to overhaul everything.
You do need to understand a few key decisions and feel confident asking questions.
The Bucket Approach
For younger investors: Start with a 3–6 month emergency fund. This is your first bucket. Then, maximize employer plan contributions. This is your second bucket.
For older investors: Begin with your budget and fixed expenses. This is your first bucket. Then, diversify investments to balance risk and return. This is your second bucket.
This approach keeps things simple and helps you see where your money should go next.
What I’m Loving Lately
Watching Real Housewives (always a reminder that money doesn’t equal good decisions). Also loving a Caesar salad + fries...simple, reliable, always works. Kind of like investing.
What I’m Reading
I just finished Strangers: A Memoir of Marriage. It stuck with me. Many of her decisions weren’t “bad”; they were made assuming things would work out. I see this in finances too. Life gets busy, and we don’t always pause to look more deeply.
Next on my list: open to suggestions. What are you reading and loving?
Hot Topic of the Month: Long-Term Care (LTC)
I know, it’s not something we want to think about, but you’ll be happy you did. The investment is minimal while you’re younger and working, but the comfort of having it is immeasurable. How to get started:
Start thinking about long-term care now before it becomes urgent. We can help you figure out what’s important and how to build a plan that gives you options, not stress.
Many of us don’t know what is covered until we (or a family member) are in an emergency health situation. According to the National Council on Aging, nearly 70% of Americans turning age 65 will need some form of long-term care services and supports in their remaining years.
What long-term care is and what’s it’s not: It’s about getting extra help later in life, not just moving into a nursing home. Long-term care can cover services like in-home caregivers, assisted living, memory care, and assistance with everyday activities, which Medicare typically does not pay for.
Long-term care insurance policies generally fall into three main categories: traditional (stand-alone), hybrid (linked-benefit), and short-term care.
A hybrid life insurance and long-term care policy provides a death benefit and protects your retirement against long-term care costs.
How to pay for it: Many women are surprised by how quickly care costs can affect retirement savings. Care costs can range from a few thousand dollars a month for part-time help to much more for full-time care, so building a dedicated savings plan early can make a big difference later.
Smart ways to plan ahead: Planning early gives you more options and more flexibility down the road. The right plan depends on your health, goals, and budget, so it helps to work with a professional who can guide you toward the right amount of coverage for your lifestyle.
3 Things to Do This Month
- Clean out one closet or drawer.
- Have a conversation about long-term care with friends, parents or your financial advisor.
- Start tracking your monthly costs by using an app, keeping a running list on your phone, or writing down your expenses at the end of each day.
Tell Me What You Want
I want this to be helpful, not just another email you skip.
What’s something you’ve been meaning to understand better? (Roth vs. pre-tax, investing, equity comp, “Am I doing this right?”....anything.)
What’s stopping you from getting more financially organized? Is it behavioral, time management or fear of the unknown? Let me know, and I can help.
Where are you in your career and financial journey? Whether you are in your 20s and just starting to invest, in your 30s and 40s and realizing you’re ready to invest more, or closer to retirement and following a set cadence of saving and investing, let’s talk.
Follow me on LinkedIn: linkedin.com/in/katyufferman
Email me: Kufferman@maxwellfm.com
Call me: 614.431.4345
Website: www.maxwellFM.com
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.