Women aged 18-29
Financial goals
“Women live longer but save less than men,” says Keren Bobker, Senior Partner, Holborn Assets. “It is important for women to start saving and investing more money at a younger age than men as they are far more likely to take career breaks, especially when they plan to have children.” Women should create a budget to prevent unnecessary expenses and get into the habit of putting some money to work every month. When in their 20s, the short-term goal should be to build an emergency fund — set aside money in the savings account to cover three to four months of living expenses in case of any unforeseen event.
Where to put your money
“Ideally, women should start saving at least 10 per cent of their income and gradually increase the amount over time,” says Bobker. “If they are investing for long-term returns, they can consider equities.”
Asset allocation should be determined by the willingness to take risk. People can afford to take more risks in their 20s and be aggressive about investment choices. Conservative investors may maintain a diverse investment portfolio in stocks, bonds and cash.
Women aged 30-45
Financial goals
“Women in their 30s must take more of a keen interest in money, what to do with it and how to manage it,” says Rickson J. D’souza, Director, Asset & Wealth Management, Pinnacle Insurance Brokers.
“In the short term it is great to get rid of any debt women or their families may have,” adds D’souza. “Medium- and long-term goals, though, differ but creating cash liquidity, providing for their children’s education, setting up a retirement plan and owning a home can feature very high up on the list of priorities.” A periodic review of investments is recommended.
Where to put your money
“At least 35 per cent of your income needs to be put away to secure your future,” says D’souza. “Invest in assets that are easy to liquidate, fixed deposits and mutual funds, for example. You can consider stocks and shares as well, if you have the time and discipline to trade and manage. It will be foolish to not invest in property, though it is not as easy to liquidate. Invest 25 per cent or less in bonds or money markets, 25 per cent in balanced or low-risk equities and 50 per cent in aggressive options.”
Women aged 46-59
Financial goals
“If you are married and have a family, you are probably coming to the end of having dependent children,” says Natalie Storey, Financial Planner at financial services provider Acuma. “If you are a working woman, your 50s should see you earning and achieving the most.
“Long-term finance goals should definitely be focused on retirement,” adds Storey. “Retirement is probably only 10-20 years away and if you haven’t planned anything yet, a savings plan should be started for your retirement fund. At least 20 per cent of your earnings should go towards your retirement saving. Short-term finance goals should be to pay off debt, if you have any. For the medium term, ensure that you have enough cash in a reserve account for a rainy day.” Enlisting the help of a financial adviser is another option.
Where to put your money
“If you are looking at investing for a short period, one-two years for instance, you can invest in a bank account,” says Storey. “For a longer-term view, five years and more, build an investment portfolio to beat inflation and produce good returns. These investments would include equities, bonds and alternative assets. The allocation of funds will depend on the investor’s attitude to risk.”
