Women think about retirement planning differently than men. Marcia Mantell gets it.
Women are completely comfortable talking about many “M-word” topics ranging from marriage and motherhood to mammograms and menopause, Ms. Mantell writes in her new book “What's the Deal with Retirement Planning for Women?” (People Tested Books, 2015). But bring up another “M-word” — money — and conversation often screeches to a halt.
For nearly 25 years, Ms. Mantell has conducted retirement income planning workshops and programs. Now she has written a retirement book for women.
IF THE SHOE FITS
Ms. Mantell addresses the financial paralysis that grips many women. They may be experts on budgeting and cash flow, but “busy women just don't have the time in their hectic days to become savvy investors,” she wrote. “Our focus, regardless of how big and successful our outside careers have become, is still on nurturing our families and managing day-to-day living expenses.”
Like it or not, retirement planning is crucial, as 90% of women will be solely responsible for managing finances on their own at some point in their lives due to divorce, the death of a spouse or the rise of singlehood.
What better way to start than relating retirement planning to shoe shopping. You don't have to be Imelda Marcos to appreciate the references.
“For every pair of shoes you buy, put the same amount of money into an individual retirement account,” Ms. Mantell writes, calling an IRA the first account every woman should have. “The IRA is in your name, giving you control and independence over some of your retirement assets.”
The second account every woman should have is an individual savings or investment account, separate from the household check book, that she dubs a “freedom fund.”
Ms. Mantell also discusses the importance for a woman of building credit in her own name, managing debt and learning about the role that Social Security will play in her retirement income.
Once women are ready to dip a toe in the investing world, the shoe analogy continues.
Researching investments is like choosing a favorite shoe store. Assessing an investment's performance is like trying on a new pair for fit. Worried about investment risk? Like a fabulous shoe, you can tolerate a pinch if the payoff is worth it. Don't forget fees and costs. Like a true bargain hunter, you might find a better deal elsewhere.
RETIREMENT BUDGET CATALYST
The book paints a clear picture of how women think about retirement, what role they play in their families and communities and why finances are not at the forefront of their interests. And it can serve as a catalyst for creating a retirement budget with women's special interests in mind.
(Questions about Social Security? Find the answers in my ebook at my ebook.)
