Are Women Reluctant to Talk About Money?

A new survey says yes. Is it telling the whole story?

 

 

A new study asserts that women feel uncomfortable discussing financial matters. The latest Money FIT Study from Fidelity Investments is generating some conversation within the financial industry. The investment giant commissioned an online poll of 1,542 female participants in its retirement plans, and 80% of the respondents indicated that talking about money matters was “too personal” or “uncomfortable” for them, even if the other party was someone they knew closely.^1,2

   

If this were 1965, this kind of response might seem reasonable ... but in 2015?

 

Keep in mind that this was an online poll. The involved survey firm, Kelton, conducted it with the usual wide parameters. Responses were collected from both retired and working women. Respondents were aged 18 and up.²

 

Two other key factoids from the study seem incongruous with this first one. In the same online poll, 92% of the respondents said they wanted to learn more about financial planning within the next year. Additionally, 83% noted that they would like to take more control over their personal finances in the next 12 months. Accomplishing both objectives implies talking about money and personal finance issues.¹

 

Another positive: female baby boomers seem to have more financial literacy. Digging deeper into the study’s findings, 70% of the boomer women surveyed felt confident about retirement saving and making a retirement transition, compared to 54% of Gen X women and 62% of Gen Y women. Also, 63% of women in this demographic said they knew where to invest; just 48% of Gen X women and 60% of Gen Y women did.¹

 

Why do we see this disconnect in the data? If women want to learn more about money and/or possess reasonable financial knowledge, what accounts for their apparent reluctance to talk about money matters with spouses, partners and friends? Is there a lack of confidence, a fear of seeming ill-informed? Is the topic just boring?

 

Perhaps the answer to the last two questions is “yes.” The poll asked how likely respondents would be to discuss certain issues with their spouses or partners, and while 78% said they would likely have conversations about health issues, just 65% said they would be likely to chat about investment ideas. Fidelity and Kelton also discovered that 65% of these workplace retirement plan participants aren’t drawing on financial or investment guidance offered as a complement to the plan. In fact, just 47% of these women indicated they would be confident discussing money and investments in the presence of a financial professional.^1,2

 

At the typical company, workers of both genders would rather head out for lunch than set aside a lunch hour for a meeting about “boring financial stuff.” Such a meeting, however, might help them see the big picture of what they need to do for retirement and might motivate them more than any website or article possibly could.

 

When financial professionals overcome that perception, employees awaken to the opportunity that a workplace retirement plan presents and see its value; the topics of saving and investing become much more compelling. When that perception remains in place, fewer employees ask for guidance and many effectively do not know where to start, and that may promote discomfort and awkwardness in chats about personal financial matters.  

 

Women seem to invest capably whether they like talking about money or not. Fresh data from SigFig (formerly WikiInvest) bears this out. In analyzing 750,000 investment portfolios, SigFig found that the median 2014 net return for a woman investor was 4.7%. For men, it was 4.1%. SigFig also made an even more intriguing discovery: while women tend to invest more conservatively than men prior to age 55, after age 55 they actually allocate a higher percentage of their portfolios to equities than men do.¹

 

The new Fidelity study is a conversation starter, but it might best be taken with a few grains of salt. Structure a multiple-choice survey question (and its answers) two or three different ways and you may get two or three different responses. Your individual response to the challenge of saving, investing and planning for retirement should be a confident one.

  

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

    

Citations.

1 - forbes.com/sites/nextavenue/2015/02/12/money-the-subject-women-dont-want-to-discuss/ [2/12/15]

2 - plansponsor.com/Women_Have_Confidence_Gap_in_Financial_Matters.aspx [2/12/15]

Signs of Elder Abuse

Is someone taking advantage of someone you love? June 15 is World Elder Abuse Prevention Day, a day to call attention to a crisis that may become even more common as baby boomers enter the “third acts” of their lives.¹ 

 

Every year, more than half a million American elders are abused or neglected. That estimate comes from the Centers for Disease Control, and the frequency of elder abuse may be greater as so many elders are afraid or simply unable to speak out about what is happening to them. In some cases, the abuse is limited to financial exploitation. In other cases, it may encompass neglect and physical or emotional cruelty.¹

    

What should you watch out for? Different varieties of elder abuse have different signals, some less obvious than others.

 

Neglect. This is commonly defined as withholding or failing to supply necessities of daily living to an elder, from food, water and appropriate clothing to necessary hygiene and medicines. Signals are easily detectable and include physical signs such as bedsores, malnutrition and dehydration and flawed living conditions (i.e., faulty electrical wiring, fleas or cockroaches, inadequate heat or air conditioning).

 

Self-neglect also surfaces, stemming from the declining physical or mental capacity of an elder. If he or she foregoes proper hygiene, disdains needed medications or medical aids, or persists in living in an insect-ridden, filthy or fire-hazardous dwelling, intervene to try and change their environment for the better, for their health and safety.

 

Finally, neglect may also take financial form. If someone who has assumed a fiduciary duty to pay for assisted living, nursing home care or at-home health care fails to do so, that is a form of neglect which may be defined as elder abuse. The same goes for an in-home eldercare service provider that fails to provide an adequate degree or frequency of care.²

 

Abandonment. This occurs when a caregiver or responsible party flat-out deserts an elder – dropping him or her off at a nursing home, a hospital, or even a bus or train station with no plans to return. Hopefully, the elder has the presence of mind to call for help, but if not, a tragic situation will quickly worsen. When an elderly person seems to stay in one place for hours and appears confused or deserted, it is time to get to the bottom of what just happened for his or her safety.

   

Physical abuse. Bruises and lacerations are evident signals, but other indicators are less evident: sprains and dislocations, cracked eyeglass lenses, impressions on the arms or legs from restraints, too much or too little medication, or a strange reticence, silence or fearfulness or other behavioral changes in the individual.

   

Emotional or psychological abuse. How do you know if an elder has been verbally degraded, tormented, or threatened in your absence, or left in isolation? If the elder is not willing or able to let you know about such wrongdoing, watch for signals such as withdrawal from conversation or communication, agitation or distress, and repetitive or obsessive-compulsive actions linked to dementia such as rocking, biting or sucking.²

   

Financial abuse. When an unscrupulous relative, friend or other party uses an elder's funds, property, or assets illegally or dishonestly, this is financial exploitation of the elderly. This runs all the way from withdrawing an elder’s savings with his or her ATM card to forgery to improperly assuming conservatorship or power of attorney.²

     

How do you spot it? Delve into the elder’s financial life and see if you detect things like strange ATM withdrawals or account activity, additional names on a bank signature card, changes to beneficiary forms, or the sudden absence of collectibles or valuables.

 

Examine signatures on financial transactions – on closer examination, do they appear to be authentic, or studied forgeries? Have assets been inexplicably transferred to long-uninvolved heirs or relatives, or worse yet apparent strangers? Have eldercare bills gone unpaid recently? Is the level of eldercare being provided oddly slipshod given the financial resources being devoted to it?

       

Respect your elders; protect your elders. Some people aim to exploit senior citizens. Others simply don’t recognize or respect the responsibilities that come with eldercare. Whether the abuse is intentional or not, the emotional, physical or financial harm done can be reprehensible. Talk to or check in on your parents, grandparents, siblings or other elders you know and care for to see that they are free from such abuse.

  

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

     

Citations.

1 - cdc.gov/features/elderabuse/ [6/9/14]

2 - ncea.aoa.gov/FAQ/Type_Abuse/index.aspx [2/10/15]