Your Money Journey: Lisa Sakai
We want empowerment in the workplace, empowerment at home with our families, and empowerment with our friends and the world around us.
But what about empowerment in our finances?
We as women tend to shy away from taking bold moves when it comes to taking care of our financial future. However, as we get older, financial empowerment becomes a pivotal aspect of securing a comfortable and worry-free future. We often push this empowerment aside because we just don’t know where to start. Start with these five empowerment essentials and you will be on your way.
“Many don’t realize that after the age of 50, you have catch up amounts that are allowed.”
5 Financial Empowerment Essentials To Put You On Your Way:
1. Maximize Savings:
Take full advantage of employer-sponsored retirement plans such as 401(k)s or IRAs. Many don’t realize that after the age of 50, you have catch up amounts that are allowed. Increasing contributions closer to retirement can significantly impact your nest egg, providing a more robust financial to utilize in the future. More money means more fun later on. If you haven’t already, consider consulting with a financial advisor to make sure your investments align with your goals and risk tolerance.
2. Build An Emergency Fund:
Often we can feel stressed when money runs tight. It doesn’t matter what your income is, money can be a problem for us all at one point or another. Unexpected expenses can arise at any age, but having a robust emergency fund can get you through those times by acting as a guard to your other savings and goals.
Aim to have at least three months of living expenses set aside in a liquid and easily accessible account. Keep it there. It’s boring for a reason. Then this fund can act as a safety net, providing peace of mind and stability during unforeseen circumstances like medical emergencies or unexpected home repairs. Don’t feel guilty for using this money in times of need. Just remember to promptly save back up in your emergency fund or you won’t be prepared during the next crisis.
3. Invest In Your Health:
Healthcare costs can escalate as we get older and medical insurance gets more and more complicated. At each enrollment period, really look at the insurance and make sure you understand what it does and how you are covered. No need to have a nasty surprise that could have been avoided.
Also, think about some other insurances that you might need outside of work; such as, life insurance and long term care. While these types of insurances aren’t fun to think about, empowerment means that you can take on any challenge. Without considering who you need to take care of, even if that’s yourself, we really aren’t acting as empowered women.
“Power is knowledge and the more you can know before you get there, the better off you will be at full retirement age.”
4. Educate Yourself On Social Security And Pension Benefits:
There is nothing more complicated than the Social Security system in this country. However, there are some good rules of thumb you should know, like your numbers. If you haven’t already, go to www.ssa.gov and create a social security account for yourself. You can then go in and see what you should be expecting in retirement. This is a key step towards financial empowerment.
Then meet with an expert to see if there are any ways to maximize it. Also, your pensions have details you should know about as well. I was sitting down with a client the other day and we were reviewing her pension. I asked if it had a Cost of Living Adjustment on it and she had never considered to ask. Power is knowledge and the more you can know before you get there, the better off you will be at full retirement age.
5. Diversify Investments And Plan For Longevity:
We would all like to invest our money once and then let it sit and forget about it. Unfortunately, that is not reality. The world changes and your goals change as well. What you put in place in your 30’s might not be the right investments for you in your 50’s.
A well-diversified portfolio can help manage risk vs. returns. You might even want to consider having different accounts doing different things. Such as, one account might be a little less risky because you will be using it first. But, a second account you don’t intend using for 10 years, that one can be a little more risky. Make your investments and accounts work for you.
Financial empowerment for women is a combination of strategic planning, informed decision-making, and being proactive. By taking these steps, women can pave the way for a secure and fulfilling financial future. Remember, it’s never too late to start, and every step taken today contributes to a more prosperous and worry-free tomorrow.
Please Note: The information in this material is for general information only and is not intended to provide specific advice or recommendations for any individual. Integrated Financial Partners does not provide legal/tax advice or services. Please consult a qualified legal/tax advisor regarding your specific situation. Additional resources can be found in the Author’s bio below.
About the Author:
Lisa Sakai is a Financial Consultant who works with clients on Bucket List Acceleration and getting to live the life they want now. As the co-founder of One Vision Retirement, she has been working with clients across the country for over 12 years. Lisa’s advice provides easy to understand, logical steps and exercises that people can take action on right away. Learn more about Lisa Sakai here at One Vision Retirement.
Need help getting started? No sweat, set up a no-obligation, Get to Know you Call today: https://calendly.com/onevisionretire/gettingtoknowyou One Vison Retirement. Your Path to Financial Independence with 20/20 Vision.