Women Have Unique Retirement Planning Needs

By Andrew Brake

Translating retirement dreams into reality can be challenging-especially for women, who often must overcome unique, gender-specific hurdles to achieve financial security.

These challenges include lower average earnings, child custody and support, elder care and longer life expectancies than men. This series of articles explores these special gender-based issues to help women become better informed about retirement and financial planning.

As more women have entered the workforce and their pay moves toward parity with men, women now have more opportunities to save and invest for retirement. But simply increasing women's financial power will not necessarily result in a higher quality of personal retirement planning, greater participation in retirement plans, a higher rate of savings or smarter investing.

The facts tell the story:

• Women live longer-Statistically, women outlive men by an average of about five years. This suggests they will have to save more because they'll have more years of retirement to fund.
• Women save less-The women's median contribution rate is 6% vs. 8% for men, according to the Ninth Annual Transamerica Small Business Retirement Survey (September 2008), although the savings rate for both men and women falls short of the minimum recommended 10%. Only 10% of the women surveyed reported household retirement savings totaling over $100,000, compared to 29% of men.
• Women start saving later-Women postpone retirement saving later in life than men, so they have fewer years to accumulate a retirement nest egg.
• Women have less to invest-Generally, women have less to invest since, on average, they earn less than men.

The poverty rate for all elderly women is 13% according to the U.S. Census Bureau in 2008. However, the University of Michigan Retirement Research Center (May 2003) found that for widows, divorced and never-married women, the rate jumps to over 18%. Too many rely on Social Security as their sole source of income.

Next, you'll learn more about the pay differential between men and women-one of the major financial challenges facing women as they plan for the future.

Women save less because they earn less

Despite significant achievements in the workplace, many women are still at a disadvantage when it comes to earning power. No matter what measure is used, women's earnings generally remain below those received by men.

According to the U.S. Census Bureau, the median earnings of full-time male workers was $43,460 in 2007. By the same measure, the median income for women was $33,437. But the gap between women's and men's earnings closed slightly. In 2007, the female-to-male earnings ratio was 0.78-higher than the previous all-time-high of 0.76, first recorded in 2001.

Various factors contribute to these earnings differences:

• Women's careers are interrupted more often for childbirth, childcare or elderly parent care.
• Even women who gain entry into high-paying jobs can be subject to these demands on time and attention.
• Smaller companies with smaller payrolls typically employ more women than men.
• Fewer women than men are union members.
• More women than men choose not to work outside the home.

For these reasons, it can be especially important for women to become informed about retirement and financial planning programs-and to participate in employer-sponsored retirement plans.

Next, we will discuss the competitive demands that many working women face-and often face alone: the care of children and elderly parents.

The challenges of providing child and elder care

Women's traditional role as caregivers for both children and elderly family members often impose special financial hardships and make it even more difficult to set aside money for the future.

This is especially true for women who are custodial parents, dependent on child support payments that might or might not be forthcoming. According to the 2005 edition of Child Support for Custodial Mothers and Fathers, a U.S. Census Bureau report, an estimated 13.6 million parents had custody of children under 21 years of age. And five of every six custodial parents were women.

Custodial mothers are more likely than fathers to work part time and have the greatest need for child support. Yet, the Census Bureau study found that among the more than 11 million custodial mothers, only 2.9 million were receiving the full amount of their court-ordered child support payments. Clearly, the unsupplemented burden of child and household support falls more often to women with single incomes-a fact that can have a devastating effect on retirement-planning efforts.

Caring for the elderly

Nearly one in four of the nation's households is involved in caregiving to family members or friends aged 50 or older. And about 75% of those caregivers are women. (Source: 101 Facts on the Status of Workingwomen, published in 2005 by the Business and Professional Women's Foundation). The BPWF report also stated that 27% of all caregivers are daughters of those receiving the care, and that female caregivers spend 50% more time providing care than male caregivers.

Further, according to the BPWF, employed caregivers are more likely to miss work, lose a job or career opportunity or experience other negative economic effects.

And then there is the direct financial impact. Elderly people living on a fixed income can have more difficulty paying utility bills, medical deductibles, nursing home bills or home healthcare charges. When the elderly parent runs a little short, the caregiver might be required to make up the shortfall. Again, this can reduce the amount available to save for retirement.

What women can do to prepare for the future

Financial planning begins with becoming educated about key financial issues. That's not as difficult as it might sound, because it just takes some time to read up on finances in dozens of personal financial management books and magazines on the market.

These publications explain the pros and cons of investments such as mutual funds, variable annuities, certificates of deposit (CDs), money market funds and other investments; savings programs such as workplace retirement plans and Individual Retirement Accounts (IRAs); and the concept of risk management through life and long-term care insurance.

Next, acquire an understanding of cash management. This involves monitoring your checkbook, determining where your money goes every month, and finding ways to reduce these outflows if they exceed your income. Budgeting is the most basic, most effective way to sort out balance income and outgo, identify expenses that need to be reduced and provide a framework for managing your finances.

Now is the time to start using the five-step retirement-planning process:

• Set goals
• Analyze current financial position
• Develop strategies
• Choose specific investment options
• Evaluate and follow up on your plan

This process can help you determine how much money you'll need at retirement and make decisions about how to start accumulating that money. For more information about financial and retirement planning for women, contact financial advisor, Andrew Brake @ 336-833-3066 or andrew.brake@valic.com.
Securities and investment advisory services are offered by VALIC Financial Advisors, Inc., member FINRA and an SEC-registered investment advisor.

VALIC represents The Variable Annuity Life Insurance Company and its subsidiaries, VALIC Financial Advisors, Inc. and VALIC Retirement Services Company.

Copyright © The Variable Annuity Life Insurance Company.

All rights reserved.

VALIC.com

Andrew R. Brake, MBA, CRPS® - Financial Advisor
Atlantic Region - Western Carolina District
VALIC Financial Advisors, Inc.

7029 Albert Pick Road, Suite 206, Greensboro, NC 27409
Office: 336-833-3066 Voicemail: 800-892-5558 ext. 88037
andrew.brake@valic.com
http://www.VALIC.com

Article Source: http://EzineArticles.com/?expert=Andrew_Brake

Career Advice - 3 Ways to Bounce Back From a Lay Off

By Benjamin J Nash

In the past we have written tips on how an organization should handle a downsizing. Now we are going to explore the other side of the dreaded downsizing.

Being laid off from your job can be a devastating experience - all of a sudden thousands of not so pleasant thoughts begin to rush through your head and life may soon become overwhelming. How will I pay my mortgage, my car payment, my kid's college tuition? How could they do this to me? What am I going to do now? Though getting fired (lets call it what it is and dispense with the made up marketing language designed to make it seem a little more tolerable) is not a pleasant experience, especially in a tough economic climate such as this one, there are some ways to help see the bright side and move on. Here are some tips for bouncing back from being fired:

* Do not beg for your job back - when the news that you are being let go hits, don't go into desperation mode. If it is a calculated firing, you can be sure that a lot of thought has gone into your release for one reason or another. There is a very slim chance you will be able to convince the organization not to let you go, so try and take the news in stride. It is bound to be a tremendously humbling experience but try and end the employee, employer relationship on the best of terms. Ask for positive letters of reference, negotiate severance pay, and seek for outplacement assistance if it is so warranted.
* Try to look on the bright side - So you just got let go from a company you have been at for 25 years. Sure, it sucks - there is no other way to say it. But there is bound to be something new you have always wanted to try and never had chance to take a shot at. Try taking a shot at it now. If you have successfully negotiated a severance package, look at your dismissal a chance to follow a dream - it may not work out like you plan, but it may work out to be the best thing that ever happened to you.
* Blow of some steam for a while, then hit the job circuit - Take some time to yourself after you have been fired. Evaluate the reasons for your dismissal and try and think if there is anything you need to change in order to get a new job. After that, forget about it - dwelling on the experience will not make you any better. Go out with friends, have fun; heck, you can even participate in the Unemployment Olympics (click here to read more: http://www.cnn.com/2009/US/03/31/unemployed.olympics/). When you are ready and refreshed, hit the job boards and your network to find that new job - you should feel somewhat better about the situation (at least you got some time off to relax) and you will be more energetic to find a position - this will shine through in interviews, which is far more appealing than desperation!
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Ben Nash is the editor-in-chief of DailyHRTips.com. He is the founder and chief developer of the blog, providing tech/design support as well as tips and book reviews. Ben has held many interesting jobs in his professional career, including: barista, landscaper, public policy intern, barista (again), professional horse wrangler, ski lift attendant (aka "liftie") , political science teaching assistant, marketing and sales assistant, ecommerce/web developer, and Supreme Allied Commander of NATO (briefly). Due to his constant "dabbling" , Ben has interacted with many people, in many different organizations and offers some interesting insight on the human resources game. Please contact Ben at ben@dailyhrtips.com or visit http://www.dailyhrtips.com. Article Source: http://EzineArticles.com/?expert=Benjamin_J_Nash

Feeling Like a Failure - 5 Ways to Feel More Successful Without Doing Anything Remarkable

By Susan Meindl
Platinum Quality Author

Consider the possibility that you are not actually a failure.
How much of your sense of failure is related to the standards against which you are judging yourself? It may be worth considering whether you are looking at yourself through an appropriate lens. You can become a success overnight if you are willing to use a different set of criteria!

(1) Choose non-materialistic standards for success. It is heartbreaking to see how many people judge themselves failures because they are not rich enough, famous enough or thin enough. Success and failure are not limited to three simple categories. Every domain of human experience, intellectual, physical, relational and spiritual contains opportunities for success. It is a mistake to define the categories of human success too narrowly. If you look, you will probably find that you excel in many important human areas of experience.

(2) Cultivate the valiant attempt. Accept failure as an honestly paid price in the name of learning, skill development and deeper understanding. Many important projects require several false starts, detours or successive approximations before they bear fruit.

(3) Cultivate the ability to be a good loser or a good sport. Being graceful in defeat is a much admired quality of character. Entertainingly, it means that one can even succeed at failing.

(4) Believe in your resilience. Hang on to your belief that you can recover from disappointments mistakes and failures. Change your perspective...Adopt a longer time frame ...Will this failure still feel important in a year? In ten years? Does it really affect the opinion of those people most emotionally important to you?

(5) Develop a sense of humor about yourself, your standards, your efforts and your eventual success and failure. Often fear of failure is entangled with a fear of being laughed at or ridiculed. Having a sense of humor about yourself lets you laugh with others and detoxifies the experience.

An Ultimate Irony

Many highly talented, creative and extremely capable people feel like failures unnecessarily. Sometimes the inappropriate and exaggerated standards against which they propose to judge themselves are so daunting that they find themselves unable even to start their projects.

Fear of failure often drives perfectionistic behavior.
Perfectionism is not the same as "desire for excellence." Perfectionism is actually a defensive attempt to ward off criticism or struggle. Too often perfectionists will not tackle genuinely challenging projects because they prefer to stay in areas of work where they can be almost absolutely certain to succeed. This means that they work well below what their true level would be if they would risk imperfect or unsuccessful experiences in the name of developing their potential.

Ironically these "successful" individuals may feel like failures despite nearly perfect track records... because on some level they know that they have never really tried. Even if everyone else is impressed, they know that they are always pulling their punches and offering less than their best.

Paradoxically therefore, it is even possible for success to be a personal failure from the perspective of what might have been possible if the individual had been more prepared to fail.

Susan Meindl, MA, is a licensed psychologist in private practice in Montreal Canada. She has a special interest in Jungian ideas and practices a Jungian approach to psychodynamic psychotherapy

http://therapists.psychologytoday.com/rms/59983
Article Source: http://EzineArticles.com/?expert=Susan_Meindl

Dress For Success - Get the Job Offer You Deserve

After months of searching and submitting resumes, you have finally landed the all important job interview...but what now?

SET YOURSELF APART FROM THE CROWD

Everyday I see interviewees come in dressed as if they are going to visit their elderly grandmother for a special holiday. They are in khakis and a button down shirt with loafers. Yes, they may look decent but the question is...ARE THEY A POTENTIAL EMPLOYEE?

With the unemployment rate reaching nine percent, EVERYONE is more than qualified for any given position. However, people depending only on their resume to land the job are repeatedly disappointed when the final decision is made and they are rejected.

You have probably heard it before..."It was a really close decision between you and another candidate but that candidate just had a slight edge." What was that slight edge? Candidate A+ just landed your job because they put on a jacket, a tie and nice shoes. They showed that they respected the position and felt honored to be chosen for the interview.

It may take a little more effort to invest in a couple of suits (remember there are usually first and second interviews) and a nice pair of shoes, but in the end you get the break in this closed job market that you desperately need.

Here is the most important advice I can give. The job interview starts as soon as you get onto the company's property. Enter fully dressed, including that ever important SMILE before you leave the car.

Tiffany Green is the owner of ShopOnSale.net an online resource for discounted services and products. After several years of participating with MLM organizations, Tiffany decided put her energy into a something she truly believes in, her ability to research information. At ShopOnSale.net shoppers can find shopping tips and discounts to maximize their savings.

Article Source: http://EzineArticles.com/?expert=Tiffany_Green