Thank you so much for the privilege of hosting the Hispanic Bar Association’s Cafecito! This session featured Jason Korff, PNC Investment Financial Advisor, and Erin Brand, PNC Wealth Management Wealth Strategist, who presented on Women, Finances & Investing - Smart Financial Strategies for Every Stage of Life. When it comes to planning for retirement, women face a different set of challenges than men. These challenges include:
· Greater longevity
· Decreased earnings potential
· Employment opportunities
· Interrupted career tracks
· Tempered returns
We discussed effective strategies for addressing many of the unique financial issues that women face in each stage of their lives including:
· Saving for retirement
· Estate planning
· Funding education and 529 plans
· Insurance (life and disability)
· Approaches to paying off debt
· Health Savings accounts, Dependent Care accounts, 401Ks and other employer-provided benefits
· Saving for emergencies
Below are some takeaways from this session that can help you achieve the retirement lifestyle you are envisioning:
Determine the income you’ll need in retirement
As a general rule, you’ll need roughly 70- 80% of your average annual income to maintain the same lifestyle you were accustomed to prior to retirement. It should be noted, however, that everyone’s situation is unique.
Pay yourself first
Once you know how much you’ll need, you can start setting goals. When it comes to choosing between putting money in your retirement fund and allocating it elsewhere, generally speaking, it’s best to pay yourself first. Remember, you can’t take out loans for retirement.
Start early and take the “free” money
Participating in an employer-sponsored retirement plan – like a 401(k) – is easily one of the best and most effective ways to start putting money aside for retirement. A 401(k) includes numerous benefits, starting with the ability to contribute pre-tax dollars into your retirement assets, which may even help lower your tax bill. In addition, contributions made to a 401(k) will potentially grow tax-deferred. This means you won’t pay any income taxes until you actually withdraw the money. Best of all, many employers will match your contributions, essentially adding “free” money to your account.
Plan for the care you may need
Many people don’t realize that health insurance pays for doctor and hospital bills only if you are sick or injured, and that Medicare will only cover a short stay in a nursing home or limited at-home care, but only under strict conditions. You may want to explore the option of Long-Term Care Insurance (LTCI). LTCI can help pay for costly medical expenses in the untimely event of debilitating illness or injury. Without LTCI, you may have to cover these costs out-of-pocket, which could take a major bite out of your retirement assets.
Look towards your future
Retirement planning might at first seem complicated or even overwhelming, but it’s important you take control so you can achieve the retirement lifestyle you’re envisioning. And remember, you don’t have to go it alone. A financial advisor can help you control your finances, reach your personal goals, and act as a sounding board to help you avoid making emotional decisions. If you would like to further discuss anything we covered today, or have other questions, please feel free to reach out directly to Jason (firstname.lastname@example.org) and Erin (email@example.com).
About Jason: As a PNC Investments Financial Advisor with over 21 years of experience in the financial services industry, Jason Korff’s job is to help you discover where you want your assets to take you, and to aid you in utilizing all of the resources at your disposal to get you there. His approach to financial planning centers on understanding his clients, their family, their goals and their needs, all so he can better connect them with the appropriate resources at the appropriate times. The result is a series of personalized, comprehensive recommendations that are tailored to each client.
About Erin: As a Vice President and a Wealth Strategist, Erin Brand provides advice on complex estate and other wealth strategy issues. She has a high level of technical experience in estate, tax and wealth strategy issues. Erin works with a team of specialists in investment management, trust and banking services to help clients achieve their financial objectives.