For Women Only

Estate Essentials

     Whether young and starting their first jobs; re-entering the job market; married, divorced or recently widowed, American women are increasingly making their own key financial choices. But stocks, bonds, investments and insurance are not the only issues involved in financial security. There are key estate issues that every woman should learn to master as well.

Your Choices

     Under the law, every American, whether male or female, must make their own personal, health and financial choices.
     But what if an injury or illness left you physically or mentally incapacitated? Who would make the important decisions for you? Would you rather your decisions be made by someone you have appointed through appropriate legal documents or by someone appointed for you by a court? The choice is yours, but legal planning in advance usually means less expense, more convenience and greater privacy for you and your loved ones.

Your Children

     Regardless of whether you are married or single, if you have minor children, have you executed appropriate legal documents concerning their care should they become orphans? Who will provide a safe and secure home for them, as well as help develop their moral character? Who will manage their inheritance and protect it for them and from them? The failure to address these issues may negatively affect your children well into adulthood.
     Even if you have no children, you likely have definite ideas about who should inherit (and who should not inherit) your assets. In the absence of appropriate legal documents containing your instructions, state law will control. In most instances, these laws would distribute estate assets to your surviving next-of-kin, which may differ from your wishes.

Money Matters

     Are you working with a financial advisor who is focused on your financial security? Or are you working with a financial salesperson who is focused on their financial security? Studies confirm that you are more likely to reach your financial goals if you are working with a competent financial advisor.
     Regardless, when it comes to investing your money, there are two fundamental concepts every woman should know: risk & reward and asset allocation.
     Whenever you invest your money in an asset, you do so with the expectation that you will receive a return on your investment in that asset. At some future point you probably expect both the return of your money as well as the return on it. The potential that you will be disappointed in your expectations regarding your investment in a given asset type is known as its investment risk.
     The key is to balance the potential risk & reward for your overall investments according to your personal risk tolerance.
     An appropriate definition of asset allocation can be summed up as follows: Don't put your eggs in one basket. Simply put, asset allocation is an investment strategy that seeks to balance risk & reward by spreading the investment of your money over a number of assets types.
     Furthermore, your unique approach to asset allocation will vary based on a variety of factors, to include your investment goals (accumulation versus current income), your time horizon (e.g., college funding versus retirement), your need for liquidity (the ability to readily turn the investment into cash), your risk tolerance, your tax status (i.e., the impact of an investment on your tax burden), and current/forecasted economic conditions (i.e., how optimistic or pessimistic are you about inflation, interest rates and the overall economy?).
     A financial advisor can help you determine your risk tolerance and design a basket (portfolio) of eggs (investments) that is most appropriate for you. Then, over time, your financial advisor will help you adjust the eggs in your basket as your circumstances change.