Created: December 3, 2020
Modified: September 16, 2022

Episode 28: Why Do Women Need Their Own Financial Plan?

Thank you for joining us for Episode 28 of our Money Wisdom Question Series, where we answer common financial and retirement investment questions. Today’s question is, “Why do women need their own financial plan?”

Statistically Women Live Longer

There’s one big reason why a woman should have their own financial plan and it’s because statistically, women live longer. Women will tend to live seven years longer than men. So, I’m married to Wendy. She’s three years younger than me, so she should have a financial plan that goes 10 years past my life expectancy. This is really important because of two things:

  1. You need to save more money
  2. Inflation – which is affected by you living longer

Women Need About 34% More Money

I just ran a quick calculation in my office. It looks like women, depending on what interest rate they earn on their money, need about 34% more money to be able to last for the rest of their lives versus a man. I can run a calculation and it says for a man taking a certain withdrawal rate, earning a certain interest rate, his money would last for 14 years.

Let’s say from age 70 to 84 for a woman to have that money last for her life expectancy, another seven years takes about 34% more money. Just kind of a guideline there. Obviously, some of those numbers can change as far as interest rates and so on. For somebody to need 34% more money, that’s a lot. It’s really important that a woman has her own financial plan. For Wendy, we do calculations based on her living longer than I do.

Financial Plan Peace of Mind

Women living longer is the main reason they need to have their own financial plan. There are a number of other minor reasons like earnings, rates, and so on. I would encourage every woman to have their own financial plan. Have your own plan based on your own assumptions and based on your own investment goals and risk tolerance. That will give you the peace of mind to know that you’re set up OK for retirement, whether you’re already in retirement or you’re getting ready to retire.

Thanks for joining me and I hope you found this information helpful!

P.S. If you enjoyed this topic and want to learn more, download our offer, “WISER’s Financial Planning Workbook for Women”.

P.P.S. Feel free to submit questions here for a chance to have them answered!

  • Sandy and Thomas C.
    Sandy & Thomas C. are clients of Johnson Brunetti and received no compensation for their statement.

    “We always felt our financial needs were in very capable hands. Alex Angst is great to work with. Our advisor always made us feel he had our best interests at heart and explained things so we could understand them.”

  • Robert G.
    Robert G. is a client of Johnson Brunetti and received no compensation for his statement.

    “We’ve been clients of Johnson-Brunetti for > 10 years. We’re enjoying a comfortable retirement as a result. Many thanks to Joel and our CFP, Eric Hogarth. I wish we had plugged into this decade approach back when we were in our 30s.”

  • Lisa D.
    Lisa D. is a client of Johnson Brunetti and received no compensation for her statement.

    “Working with Johnson Brunetti has had a positive impact on my life by providing me with the knowledge, confidence, and peace of mind to move forward with my retirement plans. The process of getting to this point, through their guidance, has been informative and pleasurable.”

  • Ken D.
    Ken D. is a client of Johnson Brunetti and received no compensation for his statement.

    “I view your company as one that puts my interests first. I think that is very uncommon and very refreshing. “

  • Jeanne P.
    Jeanne P. is a client of Johnson Brunetti and received no compensation for her statement.

    “Matt does an awesome job! So easy to understand and he listens to our concerns and addresses them! happy I chose your firm!”

  • Anonymous
    This testimonial was provided by a client of Johnson Brunetti and received no compensation for their statement.

    “I have been pleased with the help and service I have received from the company. I have met several team members on Eric’s team and have found all of them very well prepared to meet with me when reviewing my portfolio. I always feel that I am an important customer and appreciate that very much. I hope the firm continues to focus on the customer and maintains its great service. I think you do a great job for someone like me!!!! I’m happy I chose your firm!”

    Johnson Brunetti
    Welcome to Our New Website!
    Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
    Check out your new resource center, where everything can be organized by article type or topic
    Are you ready to speak with a financial advisor?
    Johnson Brunetti

    Investment Advisory Services offered through JB Capital, LLC.
    Insurance Products offered through JN Financial, LLC.
    Atlanta • Boston • Hartford | Tel: 800-208-7233

    JB Capital LLC is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.

    JB Capital's Form ADV | Disclaimer | Privacy Notice | Client Relationship Summary

    *Information about our Affiliation with the UConn Huskies

    Johnson Brunetti is a sponsor of WFSB Better Money, WCVB Better Money Boston, WSB-TV Better Money Atlanta, WTNH Money Wisdom, and WTIC Money Wisdom.