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Women: Be involved in finances, experts say The Associated Press DENVER � Women need to become more involved in the family finances or they risk finding themselves in financial difficulties, especially as they grow older. "Women tend to feel uncomfortable with financial issues, but they need to overcome that discomfort," says Victoria Long, a financial planner who teaches courses on women and financial planning at the College for Financial Planning. "This is especially true for older women in households where traditionally the man has taken care of the finances." Long says that while men often say, "I�ll always take care of you financially," the reality is that many women one day will be alone, either through divorce, or more commonly, by outliving their husbands. Long cites statistics showing that the average age of widowhood in the United States is 56. "That�s a staggering statistic," she says. "That means it�s common for a woman to be a widow for 20 years or longer." Statistics also show that women outlive men on average by seven to nine years, mid-life divorce has tripled in the United States, and roughly seven out of 10 elderly poor in 1996 were women, and nearly half of them were widowed. The median income for women over age 65 in 1996 was $8,189. The sole source of income for 18 percent of unmarried women over age 65 in 1995 was Social Security, and one in three women depended on it for at least 90 percent of their income, statistics show. Women are less likely to receive pensions than men, and those who do receive pension income receive half of what a man receives. What can women do to minimize some of these disturbing statistics, particularly women nearing or in retirement? First, Long suggests, don�t be frightened off from doing anything because of what you may read about how much money you�ll need for retirement. "It�s common to see that you need $1 million in the bank to retire comfortably," she says. "But everyone has different lifestyles, different spending habits and different future goals. Don�t let the numbers scare you. Don�t worry about what can�t be done at this point; concentrate on what can be done." One key step is that women should educate themselves financially. Find out why, for example, your husband has invested in a particular asset. Learn the basics of investing. Long has some advice for husbands who traditionally have taken care of the finances. "Taking care of your loved one is more than just handing her a sum of money from an insurance policy and retirement plans if you die before she does," she says. "It�s making sure she has the right information." A classic example of how lack of financial education and involvement can be harmful occurs when a woman receives a lump-sum payout from her husband�s insurance policy. Without a basic understanding of investing, the woman may feel intimidated and invest too conservatively for retirement, or she may rely too heavily on salespeople who may persuade her to invest in something that is too risky for her needs. "This is where single women who have had to take care of themselves have an advantage," says Long. "They�ve had to look at those issues, they�ve had to build their own retirement fund, they�ve had to develop that comfort level with finances." Women should meet any financial advisers their husband works with, including attorneys, financial planners, accountants and insurance agents. They need to become familiar with the estate documents, such as a will and trusts, as well as pensions and investments because they will likely have to take care of them on their own at some point. "The sooner she becomes involved in the finances, the better the comfort level she will have," Long says. A woman needs to know what important financial documents she and her husband have and where they are kept. Where are the mortgage statements, brokerage accounts and insurance policies? Double-check the documents to be sure each one has the correct beneficiary. It is common for the beneficiary of a retirement plan or insurance policy to still be the spouse from a previous marriage. Long also stresses the importance of buying long-term care insurance, preferably for both people in a marriage. "If the husband gets ill, he could deplete the assets if he needs long-term care, leaving the wife in financial straits after he dies," says Long. Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.