In an MSNBC interview with Morning Joe’s Mika Brzezinski, money expert Suze Orman stated the biggest financial mistake women over 50 make is not knowing where their money is.
Orman explained that women (even those who are working) often hand over control of their finances to a spouse and, instead, choose to focus on family matters. However, if the marriage ends or the spouse dies, women are ill-equipped to take over.
“Here we are, and we don’t know what to do with what we have,” stated Orman. “We don’t know what to do with that which we needed but don’t have. And that’s all because […] we didn’t wanna get involved with our money.”
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Founder at Mindful Financial Partners, Melissa Murphy Pavone shared that while women often pay household bills or budget for day-to-day expenses, they may not have a clear view of the larger financial landscape. This can include investment accounts, retirement plans or debt owed.
Similarly, Aviva Pinto, managing director at Wealthspire Advisors, noted that women over 50 may be financially literate, but if they haven’t been the ones managing the finances they simply lack awareness of their own financial standing.
How Can Women Over 50 Start To Take Control of Their Finances?
The good news is it’s never too late.
Pavone stated that if women are looking for a place to begin, they should start with knowing their numbers: assets, liabilities, income, expenses and credit score. Knowledge is power. They should next find out what their accounts are titled and who the beneficiaries are.
Leslie H. Tayne, finance and debt expert and founder of Tayne Law Group, similarly recommended women conduct a thorough sweep of their finances — then challenged them to take it further by stepping up their investments.
“Women in this age bracket have the opportunity to contribute more to IRAs or to a 401(k),” Tayne said. This is because take-home pay could be the highest it’s ever been and mortgages are likely paid off. “If they have the means to do so, they will thank themselves later for these contributions.”
She also recommended transferring funds from a traditional account to a high-yield savings account to take advantage of compound interest, looking into long-term health insurance as soon as possible (rates increase with age) and drawing up a thorough will and estate plan to dictate where their money goes.
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Final Note
As women in this demographic age, it becomes increasingly important that they put themselves and their own financial futures first.
“Women still give more to others than we give ourselves, which is a really big mistake,” Orman said.
Failing to prepare for their financial futures could mean they’ll have to rely on children or other family members rather than shaping what they want their golden years to look like.
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This article originally appeared on GOBankingRates.com: Suze Orman Says This Is the Biggest Mistake Women Over 50 Make
