The ABCs of Behavioral Biases: Conclusion
Written by Jason Hiley
Written by Andrew Hunt
The harsh truth is that we all leave this world eventually. What we do in our time here matters, and certain actions are crucial to protecting ourselves and our loved ones in the event of our death or incapacitation.
No matter your net worth or marital status, everyone should plan their estate. Here, we take a look at four critical reasons this is especially important for women.
Women outlive their male counterparts by several years, on average. This means that they need to make their assets last longer. It also means that wives tend to outlive their husbands, which results in them likely inheriting their husband’s estate and leaving them to make final decisions on their heirs. These are major financial decisions that impact women’s lives.
Approximately 84% of custodial parents are women. Parents of young children should plan for their continued care in the event of the unforeseen. Additionally, parents should plan for who will handle the child’s property until they are of age to make their own decisions.
Women blaze their own career paths and are dynamic business owners and leaders. Whether they are the top earners in their households or not, career-driven women contribute significantly to their household’s income and should be involved in the decision making of their assets.
Not all women have an uninterrupted career history. It is still very common for family responsibilities to fall on women, leaving some to take a break from work to raise children. This break in work can reduce the amount of savings these women accumulate for their retirement. Therefore, an organized estate plan can help with transferring of assets.
Essentially, estate planning is the process of creating documents that reflect how individuals want their personal and financial assets to be distributed after their death, or if someone becomes physically or mentally unable to make decisions while still alive.
Every woman should have these basic documents in place:
As trusted financial advisors, we want to help empower women to make these important financial decisions. If you don’t know where to start and are looking for guidance, please contact us today.