Five Financial Goals
for women over 40
They’re smart, savvy and earning great salaries – so why are professional
women, many in their most important earning decade, not reaching
important financial milestones? Karen Essex-Mooney, Lifetime adviser with
over 17 years’ experience in mortgage finance , offers some sound advice.
ARE YOU
FINANCIALLY FIT?
Book a chat with
Karen today to
discuss your
financial goals.
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Karen Essex-Mooney
MORTGAGE ADVISER
T: 03 520 6152
M: 021 731 048
[email protected]
3 Main St, Blenheim
lifetime.co.nz
A disclosure statement is available on
request and free of charge.
INVESTING
OPINION: Your forties can be the most
defining and lucrative decade, especially
when it comes to finances. Taking the right
steps can improve your financial standing
and set you up for the years ahead.
However, as a financial adviser, I still
see women – often without realising it
– running the risk of making themselves
financially vulnerable.
According to recent research by ANZ Bank,
New Zealand women on average live four
years longer but retire with $80,000 less
than men. This makes it vital for women
– even more urgently in their forties – to
become single-minded in prioritising their
financial health.
Here are five important financial goals to
strive for:
Full control of your finances
All too often I’ve seen Kiwi women hand
over the financial reins to their male
partners. While it may seem easier to put
your financial health in someone else’s
hands, it could come back to bite you in the
long-term.
By 40, it’s important to exercise full control
over your financial portfolio: make sure you
earn more than you spend, and are on-track
for retirement.
Invest in your financial literacy by reading
personal finance books and websites, or
take a short course to tackle specific areas
you may need help with. Make this the
decade to get your financial house in order.
Zero high-interest debt
Turning 40 can often trigger women in
this age group to sign up for liabilities such
as expensive new cars, gadgets and
wardrobes. However, in this decade it’s
in your best interest to be more focussed
on growing your assets and investing in
your retirement funds.
Instead of taking on new debt, work
towards creating ‘rolling capital’ – a cash
lump sum accumulated from tax rebates,
work bonuses, monthly grocery savings,
and any extra bits of cash – for you to spend
on those little extras throughout the year.
You’ll save on interest and have peace of
mind knowing you’re spending money you
already have.
An adequate emergency fund
Setting up an emergency fund with three
months’ salary is always a good idea – even
more so in your forties. It protects you in
the event of potential bumps in the road
such as losing your current employment,
or if you need to reduce your hours due to
a health or family concern.
If you’re not in the position to save
three months’ salary, taking out an
income protection plan to safeguard
your income is another way to protect
yourself and continue to maintain your