Despite thirty years of research, Freud could not answer “What does a woman want?”
Let’s not untangle that mystery! Let’s talk about what studies have shown the main financial goals for women to be…
Repay your mortgage
Not only does repaying your mortgage give you financial security, it also makes financial sense. Your home is the only financial, non-superannuation asset that is exempt from capital gains tax. It can provide a solid base from which you can “spring off” into other investments.
Understand and contribute to superannuation
Look at whether you should consolidate your superannuation accounts, learn about contribution limits and the potential tax benefits of salary sacrificing, check whether you have any “lost super” accounts (you can check this on the ATO website) and learn how the funds can be invested. Start contributing early and capture the benefits of compound interest – figure out how you can have a good “nest egg” at retirement.
Save for a comfortable retirement
Getting older is bad enough – so ensure you have sufficient funds for a secure future – having money will help compensate for getting older!
Improve financial literacy
Some alarming statistics show that:
• Only 40% of women aged 40 and older feel well informed about what is needed for a comfortable retirement;
• Only 16% of women have tried finding out how things will look for them (financially) in retirement and been successful in finding what they need; and
• Only 6% of women feel very prepared for their overall retirement.
We have access to a vast range of online tools and resources to help you learn about investing and money matters. We need to lift financial literacy levels and retirement preparedness. You might consider finances dull but you need to understand where your money is and how you’re building for the future.
Look after your families (children and parents) and build wealth
Most often, women put financial security at the top of their list of priorities but are also conscious of setting long-term investment goals.
Defining your financial goals provides the foundation for more sensible long-term decision making and enhances your capacity to follow them. There is great value in dedicating some time towards working out your priorities and goals for the short, medium and long-term, and then “mapping out” a strategy to get there.
Disclaimer: This article contains general information only and is not intended to constitute financial product advice. Any information provided or conclusions made, whether express or implied, do not take into account the investment objectives, financial situation and particular needs of an investor. It should not be relied upon as a substitute for professional advice.