• Autus Team

5 Retirement planning tips for the modern woman

Updated: Aug 7, 2020

Article by Marilize Opperman, CFP®

1. Be independent

If you are in a relationship, married, or single; each woman should have their own financial status/ portfolio. This independence creates confidence and a sense of ease that is essential to the well-being of each female. The most successful investors are either well informed or have a reputable Certified Financial Advisor (CFP®) to manage their portfolio on their behalf. Being a superwoman, mother, full-time worker, house executive; or all the above leads to insufficient time left to manage your financial affairs. This leads to the modern-day woman to neglect one of the most important principles – to be financially independent.

2. Be in control

How do you ensure that your expenses are less than your income (i.e., side-step debt)? It’s as simple as drafting a budget. Tip: Have two columns for each entry - a projected cost column and an actual cost column. Ensure to complete the actual cost column at the end of each week to track your spending behaviour. Mastering the self-discipline to stick to your budget; will enhance your skills and probability to stick to your desired lifestyle (e.g. fitness routine; eating habits, water consumption, etc.).

3. Pay yourself first

Make an active decision to save specifically for yourself. By not saving a part of your income today; means no salary at retirement (future). You are paying yourself now to receive an income later – the farmer sows the seed today to harvest the good crop later. Currently, you are receiving a salary for working (from your employer or husband for managing your filial affairs). At retirement, you will receive an income because you worked (which is only possible if you invested in yourself).

4. Save ASAP

If you start saving as soon as possible; you can avoid the price of procrastination, which only makes us poorer. Every five years you postpone starting to save for retirement; will result in almost double the monthly amount necessary to reach your goal. This is the effect of compound interest. We want our money to multiply and not our centimeters. Bear in mind that it is also never too late to start saving.

5. Revise regularly

It is of utmost importance to ensure that your savings are still in line with your retirement objectives. Circumstances change (having children, relocating, stop working, or even getting back onto the corporate ladder, etc.). It is advisable to revise your budget and financial portfolio at least once a year.

Marilize Opperman, CFP®, is a Wealth Advisor at Autus Private Clients.

Contact Marilize Opperman at marilize@autus.co.za or 086 107 7789.