A few weeks ago, I shared a few misconceptions about retirement that I commonly hear, along with some thoughts on how advisors could help keep their clients from falling into those traps. Today I’ve got another retirement myth to crack. How many times have you heard a client say some version of the following: “If my spouse dies, my expenses will be reduced by 50%”?
The antiquated standard when it comes to gender roles is that men are the breadwinners, while women are the caretakers. Men are the earners, and women are the spenders. But that paradigm has evolved, and is continuing to evolve, in a manner that has financial ramifications. It is no longer the norm for women to rely on their husbands for monetary support or for men to control the family’s financial decisions. Before you make any archetypal, clichéd quips to clients about a wife’s shopping habits or a husband bringing home the bacon, take a moment to consider how the gender dynamics have changed and what that means from a financial planning standpoint.
Stephen Parnell Tue Jul 26 10:15:00 EDT 2016
Stephen Parnell Tue May 24 14:45:00 EDT 2016
Which gender is more commonly associated with business and finance? I’m guessing most people think of the male gender when it comes to money, given that men have historically out-earned women, been represented in higher numbers at business schools and are traditionally positioned as the breadwinner in a marriage. Because of this general, albeit old-fashioned, mindset, financial advisors may find themselves catering more to the male gender. Don’t let yourself give into this habit—instead, make it a habit to spend more time prospecting and engaging women investors as clients. There are several reasons why, but here are my top four: