As a woman, what are the values that will influence the way you craft your unique financial plan?

The conversations I have with my female clients during the course of my advisory work revealed several common values that are significant to them.

Key Values Women Consider Important in
Their Financial Planning

1. Financial Independence
   Many women prioritise the ability to support themselves without relying on others. This means having their own income, savings, and investments to ensure self-sufficiency in any circumstance, such as divorce, job loss, or widowhood.
   
   
2. Security and Stability
   Women often seek financial plans that provide stability for themselves and their families. They tend to focus on emergency funds, steady income sources, and risk-averse investment strategies to safeguard against financial uncertainties.
   
   
3. Long-Term Growth
   Women tend to take a long-term approach to financial planning, focusing on retirement savings, property ownership, and wealth accumulation that can sustain them in later years. They prioritise investments with stable, consistent returns over high-risk ventures.
   
   
4. Work-Life Balance
   Many women strive for a balance between financial success and personal fulfillment. They may seek careers or financial strategies that allow them to manage family responsibilities while maintaining financial growth.
   
   
5. Education and Personal Development
   Women value opportunities for continuous learning, whether through higher education, career training, or self-improvement. They often allocate financial resources for their own and their children’s education.
   
   
6. Legacy and Giving Back
   Many women consider the impact of their wealth on future generations and society. They may prioritise estate planning, charitable giving, and investments that align with their values, such as sustainable or ethical funds.
   
   
7. Health and Well-Being
   Healthcare costs are a major concern, so women tend to plan for health insurance, long-term care, and wellness-related expenses to ensure a good quality of life.
   
   

Unique Circumstances & Challenges Women Face

Women encounter distinct financial challenges that can hinder their journey to building wealth. 

• Longer Life Expectancy:
  
  
  • Women live longer (average 5 – 7 years more than men), requiring more retirement savings.
  • Higher healthcare and long-term care expenses due to aging.
    
    
• Career Interruptions:
  
  
  • Many women take career breaks for caregiving, affecting income, CPF contributions, and career growth.
  • Reduced opportunities for promotions and professional networking.
    
    
• Social Expectations:
  
  
  • Women often prioritise family expenses over personal financial goals (e.g., children’s education, eldercare).
    
    
• Risk Aversion:
  
  
  • Women tend to be more cautious investors, which can hinder long-term wealth growth.
    
    

Be Proactive! Step Out Of Your Comfort Zone

How can women help themselves to rise up and secure their own financial well-being? 

Venturing into “uncharted territory” could seem daunting to many ladies out there. But with an ‘I can do it’ attitude, my friends, you may just surprise yourself and achieve what you thought impossible at first.

Be patient. Be kind to yourself. Stay on the path and persevere. 

The journey of a thousand steps begins with a single decision – to take control. 

For women, financial independence starts with small, intentional actions: setting goals, learning about investments, and making empowered money choices. Each step forward builds confidence, paving the way for long-term security, wealth, and true financial freedom.

Here are 6 key areas in your financial planning that you need to work towards:

Start Saving Early:

• Take advantage of compound interest by starting as early as possible.
• Automate savings to ensure consistency.

Invest Wisely:

• Learn about the basics of investing.
• Start small with low-risk options like bonds.
• Strike an optimal balance between CPF investments, private investments, and property.
• Work with a financial advisor to implement a diversified portfolio that aligns with your risk profile and life goals.

Plan for Retirement:

• Supplement CPF LIFE payouts with private annuities and/or dividend-paying investments.
• Maximise CPF contributions through voluntary top-ups, only if it makes sense. Understand the pros and cons.
• Contribute up to the Enhanced Retirement Sum (ERS) if you wish to receive a higher monthly income. Consider options that can enhance liquidity while maximising returns.
• Contribute to the Supplementary Retirement Scheme (SRS) to gain tax reliefs and at the same time save for retirement. Remember, you need to invest your SRS too. Otherwise, it is not working harder for you by sitting in a savings account that gives 0.05% per annum. 

Secure Insurance:

• Ensure adequate coverage for health, life, critical illness, and long-term care.
• Review your policies regularly to ensure they meet changing needs.

Build an Emergency Fund:

• Aim for 3–6 months of living expenses to handle unexpected situations.

Plan for Family and Legacy:

• Draw up a will, nominate CPF beneficiaries, establish your Lasting Power of Attorney (LPA), Advance Medical Directive (AMD), Aging Care Plan (ACP) and set up a trust if needed.
• Educate children on financial literacy to pass on sound financial habits.
  

ACCELERATE ACTION, my dear friends!

Financial independence is not just a goal; it is a journey that empowers you to live your best life. Women face unique financial challenges but also have immense opportunities to grow their wealth and secure their future.

• Start now: The earlier you plan, the more you leverage compound interest and the easier for you to get adequate protection (without health exclusions).
  
  Don’t forget – A stitch in time saves nine! 
  
  
• Seek professional guidance: Book a consultation with me to create your unique personalised roadmap today.