Financial Questions Every Woman Should Ask by Age
By Angela Dorsey
Ladies, it’s time we talk money. Don’t worry; this isn’t the kind of money talk that will make you yawn or run for the hills. As a financial advisor, I’ve seen the incredible impact of being financially savvy. Let’s break it down by age because whether you’re in your roaring 20s or wise 60s, there are essential financial questions you should be asking.
Financial Questions Women Should Ask in Their 20s
Your 20s are a time of exploration and adventure. It is also a great time to set the foundation for your financial future. Here’s what to ask yourself:
- How do I start building credit?
- Should I go with a 401(k) or a Roth IRA?
- How do I create a well-balanced budget?
- How much should I save for my emergency fund?
While retirement may seem like a lifetime away, it’s never too soon to start saving, especially since women usually need to save more than men for retirement. It’s also wise to prepare for unforeseen financial needs, such as car repairs, medical expenses, or sudden job loss. That’s where your emergency fund comes into play, a good amount being three to six months of living expenses.
Financial Questions Women Should Ask in Their 30s
For many women, their 30s are a decade of career growth, starting a family, and buying their first home. If you have similar aspirations, you should be asking yourself:
- How much should I be saving for retirement now?
- Is it time for life insurance or a will?
- How can I intelligently manage my debt?
You should also educate yourself on financial management best practices. There are plenty of great financial books that can provide practical tips based on your unique goals and financial challenges.
Financial Questions Women Should Ask in Their 40s
Your 40s can be a power decade. You’ll likely be more established in your career, and if you have children, they will be more independent. That means you might have a little more free time than you did in your 30s.
But don’t get too relaxed. Instead, stay on top of your financial game by asking:
- Am I on track for retirement?
- How should I be investing my money?
- What about college savings for my kids?
If you feel like you are behind, don’t worry. There is still plenty of time to get back on track. But you need to get on top of things so you can enjoy your 50s and 60s.
Financial Questions Women Should Ask in Their 50s
Your 50s are a time to fine-tune your financial plans. If you started planning for retirement early, you should have a sound foundation. If not, you’ll have to hustle a bit more to catch up. Here’s what you need to ask yourself:
- What’s my plan for healthcare costs?
- Should I adjust my investment risk?
- When will I retire, and what will it look like?
Your 50s are all about timing. For example, this isn’t the time to take risks with investments—the last thing you want to do is take a step backward when you’re so close to the finish line.
You should also start visualizing your retirement. While it may still be several years away, picturing your life after work can help you stay motivated and focused. Get creative and specific; think about where you want to live out your golden years, what your ultimate goals are, and how you’ll keep busy when you’re no longer spending so much of your time at work.
Financial Questions Women Should Ask in Their 60s
The majority of women retire between 62 and 63 years of age. If you plan on doing the same, you’ll need to be asking questions like:
- Do I have a sustainable withdrawal strategy for retirement?
- How do I manage my retirement income and taxes?
- What’s my plan for potential long-term care needs?
- When should I take Social Security?
For more insights into your retirement journey, check out our free guide. You’ll find practical tips you can use to make the most of your golden years.
Have Financial Questions? Connect With Dorsey Wealth Management
According to the United States Census Bureau, women are more likely than men to have no retirement savings. The good news is that you don’t have to fall into this dangerous trend.
At Dorsey Financial Management, our team specializes in helping women like you prepare for their next great adventure—retirement! Whether you have financial questions or are looking for an experienced financial management team to guide you toward your goals, we are ready and eager to assist at every life stage.
Schedule a free introductory 30-minute phone call. You can reach us at (310) 370-7776 or angela@dorseywealth.com.
About Angela
Angela Dorsey is the founder and financial advisor at Dorsey Wealth Management, a fee-only financial planning firm based in Torrance, California, helping women prepare for retirement. Angela earned a BS in computer science from Loyola Marymount University, an MBA from UCLA Anderson School of Management, and spent 20 years as a Senior Compensation Specialist in large corporations before becoming a CERTIFIED FINANCIAL PLANNER™ professional and a Registered Investment Advisor (RIA). That background gave her the tools to couple with her passion for empowering women to make the best financial decisions possible. Angela lives in Torrance, California, with her husband. She enjoys spending time at the beach or surrounded by nature. To learn more about Angela, connect with her on LinkedIn.