Overview of Financial Planning for Senior Women

Most women and men value their money – and significantly so. Another reality is that not everyone maintains managing money as a priority. In 2021, a financial survey found that only 33 percent of Americans had a financial plan in writing. Among those without a financial plan, about 41 percent indicated they found financial planning too time-consuming or too complicated.

In more closely considering money and financial planning, it appears that senior women are even less likely to have a financial plan in writing. More senior women than senior men indicate that they find financial planning overly time-consuming and complicated. Through this article, we provide senior women with some basic thoughts, tactics, and techniques for financial planning for senior women.

In this article, we will discuss the following:

  • How to determine your financial goals as a senior woman
  • How to locate an appropriate financial planner for a senior woman
  • How to confirm that a particular financial planner is a good fit for a senior woman

Determine Your Financial Goals

The first step in the overall financial planning process is to establish your actual financial goals. This can be accomplished initially by creating a list of your financial objectives. Once you determine your goals, you can find the right financial planner to work with you to achieve your financial goals and objectives.

Suppose one of your goals is buttressing your finances to better support yourself during your senior years. In that case, you will want to choose a financial planner who is experienced in estate planning or retirement planning. With this in mind, a financial planner may select at least seven areas of financial planning as their specialty.

  • Cash Management 
    This type of financial planner may be best suited for a client who typically struggles with sticking to a budget and primarily wants to work on maintaining a positive cash flow. This type of financial planning can greatly benefit a senior woman. This mainly can be the case when a woman in her Golden Year is contemplating a move to assisted living or some other long-term residential community for older people.
  • College Planning for Grandchildren
    As an older woman, you may be interested in doing some financial planning to benefit your grandchildren’s education. This is another area in which a professional financial planner can significantly assist a woman in her Golden Years.
  • Estate Planning
    A financial planner specializing in estate planning may be best suited for someone with multiple financial accounts (for example, investment accounts, retirement accounts, and insurance policies) and who is expecting to make a significant life change, such as a move to long-term care.
  • Investment Management
    A financial planner focusing on investment management may be helpful for someone with a portfolio of securities which may need or want some counsel about what investment strategy makes the most sense to attain their specific financial goals.
  • Risk Management
    A financial planner specializing in risk management may be helpful for someone who owns a cash-positive business. Generally, a financial goal of a person in this position might be avoiding threats to their business cash flow or protecting their cash flow when a threat occurs. Common risks handled by risk management financial planners can include stock market risk, inflation risk, longevity risk, and moral risk, as well as health risks such as the risk of injury, disability, disaster, and death. 
  • Retirement Planning
    A financial planner concentrating on retirement planning may provide some benefit to anyone who would like to retire – or who is in retirement. Financial planning does not stop when a person retires. It continues through retirement.
  • Tax Planning
    Someone who would like to create a plan to potentially help them save on tax payments may be interested in hiring a financial planner focused on taxes.

How to Locate an Appropriate Financial Planner for a Senior Woman

After you set forth your financial goals and objectives, the time has come to consider engaging the professional services of an experienced financial planner. You will want to select a financial planner with experience working with women in retirement or their proverbial Golden Years. When evaluating whether or not a financial planner is a right fit for you, you need to understand that not all financial planners are made equally. For example, there are certified financial planners. These are financial planners who elect to undergo certification. If you see the acronym CFP in a planner’s title, that means that the individual is a certified financial planner.

In your search for the right financial planner for a senior woman, you could also come across professionals calling themselves financial advisors. Financial advisors can also be certified but would be certified financial advisors (CFAs). These financial planners typically work with corporate clients in analyzing their investments. In short, usually, a financial advisor may help you to manage your money, accounts, and investments, but typically only a financial planner may help you create a plan to reach long-term financial goals.

Whether you opt for a financial planner or a financial advisor, it is often helpful to inquire about their professional or work background. If they have a credential, you could ask them about it and what it took to obtain it. You may also contact the professional organization that issued the credential to verify their status.

The financial planner or advisor having a credential is just one factor for you to consider in evaluating whether a financial planner is trustworthy and capable of assisting you in overseeing your financial planning in your Golden Years. You might also want to check their complaint history using the U.S. Securities and Exchange Commission website.

How to Confirm That a Particular Financial Planner Is a Good Fit for a Senior Woman

Once you identify a financial planner in a solid position to assist you in financial planning, you need to dig a bit deeper. You need to ensure that a particular financial planner is a good fit for a senior woman in need of financial planning assistance. In this regard, you need to ask four basic questions:

How will a financial planner charge you?

You need to confirm how a financial planner will charge you for professional services. Financial planners can charge a client in several different ways that, include:

  • Hourly
  • Monthly
  • Annually
  • By the plan
  • By commission
  • By the size of your investment portfolio

What is the client load of a particular financial planner?

You certainly want a financial planner that has attracted clients because of his or her skill, success, and experience. You also want to select a financial planner that has time for you.

Can a financial planner provide references?

You can garner more information about a particular financial planner by requestion and contacting references. A reputable financial planner should be happy to provide references.

Does a financial planner have a minimum income requirement?

Some financial planners require that their clients meet a certain income threshold. Many may stipulate that their clients have investable funds at a minimum of $100,000.

Considering the tips and tactics outlined in this article, a senior woman can place herself in the best position to have reliable financial planning assistance. Ultimately, the strategies recommended in this article can put the woman on a course for enhanced financial stability during her Golden Years.