Women & Money Transitions
January 7, 2016
If you're a woman facing new life challenges – a successful proprietor of a growing business, an heir with a recent windfall or perhaps someone dealing with a fresh change in marital status or a recently diagnosed illness - then you're in transition. You need to realize that you now have special financial needs.
"The Women’s Institute for a Secure Retirement also reports that half of all widows become so by age 65"
Many women face this situation every year. Regarding widowhood, for example, the average American woman lives almost five years longer than the average U.S. man. The Women's Institute for a Secure Retirement also reports that half of all widows become so by age 65 – and women are more likely than men to suffer a drop in income after a spouse's death.
When you're dealing with strong emotions (good or bad), business or personal finance issues aren't likely at the top of your priorities. You need strategies for coping with necessary financial decisions during this time. And although each set of circumstances is different, women in transition face certain common issues.
Such women often report feeling like they're moving through a thick fog or like their brain's gone numb. If you feel this way, you're not alone: it's a basic human coping mechanism to shield us from an onslaught of stressful events and emotions.
"Impulsive decisions – expensive vacations, gifting or hastily buying or selling major assets like your business, home or stock portfolio – can leave you with major regrets"
Danger looms when this numbness extends to shielding us from the consequences of our financial behavior. The denial reflected in months of unpaid bills and overdue notices can quickly destroy a lifetime of good credit and take years to recover from. Impulsive decisions – expensive vacations, gifting or hastily buying or selling major assets like your business, home or stock portfolio – can leave you with major regrets, tax liabilities and a diminished net worth for years.
Meanwhile, you may also be in a vortex of swirling, conflicting advice from well-meaning friends and family. Certain financial strategies work for nearly every woman in transition.
This article was written by Heidi Clute for AdviceIQ and was legally licensed through the NewsCred publisher network.
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