By Kim Bolker

Women have unique challenges when it comes to retirement and financial independence. In general, women

• Earn Less
• Live Longer
• Spend Less Years in the Work Force

Women Earn Less Than Men According to the General Accountability Office, working women today earn an average of 80 cents for every dollar earned by their male counterparts. The study even accounted for factors like occupation, industry, race, marital status, and job tenure. Work patterns and work experience can be attributed to this pay gap.

Live Longer It is generalized that elderly women are three times more likely to be widowed than men. Life expectancy continues to grow higher in the United States. The National Center for Health Statistics found that in 2003, white females would out live white males 80.5 years to 75.4 years and African-American females would out live African-American males 76.1 years to 69.2 years.

Spend Less Years in the Work Force Historically, women left the work force to care and raise children full time, returning to the work force once the children were grown. The balance between career and family has been particularly challenging the last decade. Also, many women today feel sandwiched between taking care of their elderly parents and taking care of their children. Generally, daughters will quit work to be the primary care giver to an elderly parent.

Other Challenges Married women are concerned about divorce or being widowed. Divorce can leave a woman financially crippled. Women who are not involved in the financial aspects of the marriage can feel very overwhelmed after their husbands die. Generally, most women handle the budget in the household, but do not make decisions regarding insurance or investment solutions for their families. If the husband dies, the woman is faced with these uncomfortable issues with no one to trust.

Now that we know what the challenges are, how can we confront them?

• Identify and prioritize your personal goals – what is important to you?
• Start with a budget and develop a strategy – do you have little indulgences that are adding up? Do you have high interest debt that needs to be paid down?
• Additional weekly savings add up: Investing just $20 per week into a growth mutual fund assuming 8% growth rate over 35 years will increase your nest egg by over $200,000 (This hypothetical rate of return is for illustrative purposes only and is not indicative of any particular investment; your results would vary).
• Learn the Fundamentals of Investing such as the effects of inflation, taxes, asset allocation and diversification.
• Work with a Financial Professional who has not only the resources and knowledge to help you meet your goals but also one that you trust to have your best interests at heart

Kim Bolker is a representative with Sigma Financial Corporation, Member FINRA/SIPC. She can be contacted at 616-942-8600 or kbolker@sigmarep.com. The material in this article is not intended to provide tax, accounting, or legal advice. These views are those of the author and should not be construed as investment advice. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information