- Women face unique challenges in building wealth.
- Camilla Elliott, certified financial planner and member of the CNBC Council of Financial Advisers, says women need to build financial resources and financial security to feel empowered To do.
- These three steps can help every woman work toward that goal.
Women face unique challenges when it comes to managing money.
A certified financial planner Collective Wealth Partner in Atlanta.
Elliott, a member of the CNBC Financial Advisors Council, also noted that many women tend to leave work to care for children, parents and loved ones. Being out of work for a period of time can affect women’s financial security and retirement, she said.
Working with a financial advisor can help women develop a plan to get through the tough times.
“I think it’s important for women to feel empowered. Part of feeling empowered is having financial resources and being financially secure.” Mr Elliot said.
Elliott, the first black person to chair the CFP standards committee, said the industry is committed to educating women “the joys of finance, budgeting and investing” from a young age.
Still, Elliot says women of all ages can become financially successful by pursuing a few strategies.
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Research shows that there is still a gender pay gap, resulting in lower earnings for women. That could affect how much women can invest towards retirement and other goals, Elliott said.
Women can narrow the gap by negotiating salaries. Especially when starting a new role, Elliot suggested.
New salary transparency rules in effect in some regions could favor women by eliminating the need to disclose current salaries and showing the range of compensation a role can offer, she said. .
Elliott said women may hold back from investing money for several reasons. She may find investing too complicated or she may not have the funds to invest.
But when women do invest, she says, they tend to outperform men. A Fidelity Investments 2021 study, analyzing annual performance across 5.2 million accounts, found that female returns tended to outperform male returns by 40 basis points (0.4%).
It is important for women to feel empowered, and part of feeling empowered is having financial resources and being financially secure.
Camilla Elliott
CEO, Collective Wealth Partners
The current market volatility could present an opportunity, especially for those with 10 to 30 years until retirement, as they have time to weather the ups and downs, he said.
A recovery in average market returns could provide meaningful progress over time, Elliott said.
Women need financial resources and financial security to feel empowered. So it’s “important” to have an emergency fund, Elliott said, and “important” to keep three to six months’ worth of monthly operating expenses in a liquid savings account.
In addition, Elliott works with clients to create “Financial Freedom Accounts.” This helps clients provide a financial cushion to make changes when they feel stuck in a relationship, work, or life situation.
“It gives them the freedom to live their lives on their own terms, do what they want, and empower them to make the right decisions for themselves and their families,” Elliott said.
