Women & Their Financial Future

5 Steps Women Should Consider Making to Take Control of their Financial Future

When it comes to women and money, there is some good news, says Lance Drucker, ChFC, CLU, a veteran financial professional.

On average, women are more independent and financially literate than ever before, he says. On the other hand, Prudential’s eighth biennial study titled Financial Experience & Behavior Among Women recently revealed that women are no more likely to make sound financial decisions today than two years ago – or even when the study began 10 years ago.

“When women are more involved with their own finances, they feel more in control of their independence and are generally happier, but many seem to suffer a disconnect between what they want in their financial future and their spending habits,” says Drucker, CEO and president of the New York City-based Drucker Wealth Management, (www.DruckerWealth.com), a firm that specializes in empowering women to make sound financial decisions.

“While most American women say having enough money to maintain their lifestyle throughout retirement was very important, only 14 percent of those polled said they were very confident that they’d achieve that goal.”

Drucker, author of “How to Avoid Bag Lady Syndrome (BLS): A Strong Woman’s Guide to Financial Peace of Mind,” offers some guidance on the steps women can take to help them not only feel empowered about their money, but actually take control of their financial future:

•  Figuring out the cause of your Pain: Too many women really don’t want to look too deep as to why finances cause them so much stress – kind of like not getting on a scale because we really don’t want to see how much we weigh.  Before we can come up with a solution to your financial problem, we need to figure out what the problem actually is: lack of income, growth, financial illiteracy…

•  Budgeting vs. Louis Vuitton handbags.  We all need to do or buy things that make us feel good, but we need to factor our indulgences into our overall life plan. Establishing a necessary budget (what we need just to get up in the morning) as well as an Aspirational budget (more of a wish list) will help guide your decision-making process as to what you can or can’t afford to do (including buying that “to die for” item).

•  “I don’t know what I have;” Why a Balance Sheet is essential: Too many times our women clients have no idea what they have as far as financial resources, how their assets have performed, and how much they are paying for someone’s help.  Creating a balance sheet, collecting all of your statements, and taking an accounting of your life gives you the data to start making smart decisions.  

•  Developing a Plan vs. the Wine and Dark Chocolate approach: Hoping things will just get better, or the chocolate-and-wine approach to life, does have its benefits (as my wife has explained to me on numerous occasions).  Developing a written plan that lays out what you want financially and when you want it goes a long way toward peace of mind.  The wine wouldn’t hurt while writing the plan though.

•  The Gym Commandoes: There are two types of people who succeed at the gym: those do-it-your self folks who walk around with a little notebook like Rainman tracking their progress, or those who hire a coach/trainer.  Both work.  People who show up at the gym with a vague sense of “I’m gonna ride the bike, hit some weights, then take a really long steam,” typically don’t last.  By now, you have done the work. You’ve figured out your pain, budget, balance sheet, and a plan … Now you have to implement the strategy, and this is where the fun begins!

About Lance Drucker ChFC, CLU

Lance Drucker is CEO and president of NYC-based Drucker Wealth Management, a wealth management firm specializing in financial issues that affect women. He’s the author of “How to Avoid Bag Lady Syndrome (BLS): A Strong Woman’s Guide to Financial Peace of Mind” and offers resources at www.DruckerWealth.com to empower women to make smart financial decisions. He graduated from SUNY Binghamton with degrees in Accounting & Finance, and soon after joined the firm Drucker Wealth Management, founded by his father in 1959. He earned his Chartered Financial Consultant (ChFC®) & his Chartered Life Underwriter (CLU®) degree in 1993, and in 2012, he received a Certificate in Retirement Income Planning from the Wharton School of Business. He is a multiyear winner of the 5 Star Wealth Manager Award, as well as a recipient of the Women’s Choice Award for Financial Advisors.  As a proud sponsor of the Wounded Warrior Project, Drucker organizes the Polar Bear Plunge fundraiser for the WWP every January and has participated in the Tough Mudder challenge, and Spartan Race, which has helped to fund more than $2 million for wounded warriors.

All proceeds from the sale of his book
will go toward the Wounded Warrior Project.

Staying Cool Under Pressure

4 Principles for Staying Cool
Under Pressure – and Succeeding
Athlete & World-Renowned Surgeon Shares Tips
for Becoming a ‘Super Performer’

We all ask ourselves the same desperate question from time to time:

How am I going to make this work?!

“No matter how well we’ve done laying the groundwork for everything to run smoothly – becoming educated, choosing the right spouse, treating others well — we all face situations that challenge us,” says Dr. Robert J. Cerfolio, a world-renowned cardiothoracic surgeon known as “the Michael Jordan of lung surgery.”

“If we can keep our cool and adhere to some basic principles, we can not only meet any challenge – we can perform with excellence.”

A high-performance athlete in high school and college, Dr. Cerfolio parlayed his talents and focus into pursuing his medical career and creating a happy family with his cherished wife, Lorraine, and their three sons.

But after battling breast cancer, Lorraine recently passed away. Cerfolio, author of “Super Performing at Work and at Home: The Athleticism of Surgery and Life,” (www.superperforming.com), shares the principles that helped him through that greatest of all challenges and lesser ones along the way.

“Apply these principles in work, sports and life in general, and you can become a super performer,” he says.

•  Pressure equals opportunity. It’s when something matters that the pressure starts to build; this is where the rubber meets the road for sports-to-life analogies.

“In sports as in life, remember your training; follow through just like you did during practice; visualize success; believe it will happen,” Dr. Cerfolio says. “With friends, for example, high-pressure moments can be those times when they need you. The best way to have great friends is to be a great friend.”

•  Strive to hit .400 every year – keep your eye on the prize; write it down. “My high school gave out an award each year to the best student athlete in each grade,” he says. “I wrote down that I wanted to win the Klein Award in the ninth, 10th and 11th grades, and to win the most prestigious award at the senior graduation, the Deetjen Award.

He accomplished most of those goals, and a key to those achievements was writing them down and placing the paper where, for four years, he could see it every night.

“By writing them down, I had made my goals clear and objective.”

•  Lean toward a “we-centered” ego rather than a “me-centered” one. “When I traded in my baseball uniform for surgical scrubs, I noticed the importance of stripping the many layers of the ego I once had,” Dr. Cerfolio says. “This is really important: Your ego doesn’t need to be visible to everyone — or even anyone but yourself.”

Being a top performer requires ego – it helps fuel self-confidence and provides some of the motivation necessary to achieve. But it should not hinder the performance of your team: your coworkers, friends and family. Over time, by keeping your ego to yourself, it becomes easier to enact a team-oriented ego, rather than a “me-oriented” one.

•  Time to quit? Rub some dirt on it. In life, work is unavoidable, so embrace it, go big, and appreciate the rewards. No matter how difficult the challenge you face or how much it may hurt to meet that challenge, push through and give it your all.

“Yes, there’s a chance you won’t succeed, or won’t succeed to the degree you’d like. But you stand zero chance of success if you don’t meet that challenge and give it everything you’ve got,” Dr. Cerfolio says. “You owe it to yourself and your team, whether that’s your ball team, your family team or your work team. When you sign up for any team, by definition you promise your time, effort and 100 percent commitment. You have to be at every game and every practice on time and ready to go.”

About Robert J. Cerfolio, MD, MBA

Robert J. Cerfolio, MD, MBA, is the James H. Estes Family Endowed Chair of Lung Cancer Research and Full Professor Chief of Thoracic Surgery at the University of Alabama in Birmingham. He received his medical degree from the University of Rochester School of Medicine, surgical training at the Mayo Clinic and at Cornell-Sloan Kettering hospital, and has been in practice for more than 26 years. The author of “Super Performing at Work and at Home,” (www.superperforming.com), Cerfolio, who was a First Team Academic All-American baseball player in college, is a world-renowned chest surgeon and recognized as one of the busiest and best thoracic surgeons in the world.

Retirement Risks

5 Financial Risks to Consider in Retirement
After a Lifetime of Climbing, Retirees Need to be
Cautious on their Descent, Expert Warns

Most people don’t know that 80 percent of mountain-climbing accidents don’t occur on the way to the summit – they happen on the way down, says financial expert and extreme sports enthusiast David Rosell.

Although arriving at the top of the mountain is considered by many mountaineers to be one of life’s greatest accomplishments, I can tell you firsthand that summiting is not the ultimate goal for climbers,” says Rosell, CEO of Rosell Wealth Management and author of “Failure is NOT an Option,” (www.DavidRosell.com).

“They know that most climbing accidents and deaths occur on the descent. With this in mind, they will tell you that their objective is to reach the summit and get back down alive to see their family and friends. They understand that the second half of their journey presents the greatest risk and requires the most planning.”

“Likewise, we need to think of retirement as the descent from the financial mountain, which can be treacherous.”

Retirees and pre-retirees need to evolve from the traditional view of retirement, especially with so much legitimate concern about an unprecedented retirement crisis on our immediate horizon, he says. According to a 2013 report by the National Institute on Retirement Security, 45 percent of working-age American households have no retirement savings.

That’s on top of the 3.5 million baby boomers who have been retiring each year, and will continue to do so for more than a decade.

To help his clients thrive while experiencing descending their own financial mountains, Rosell briefly touches upon five major financial risks many experience during retirement.

• Inflation: During the second half of your financial journey, it’s critical that you’re able to maintain your purchasing power. Inflation simply means that every year your money buys a little – or a lot – less than it did the year before. Currently, inflation is 3.5 percent, which doesn’t sound like much. However, even if the rate holds steady and doesn’t increase, prices will have doubled in 20 years.

• Longevity: According to U.S. Census Bureau figures, the over-80 population is increasing five times faster than the overall population. By 2030, the demographics of 32 states will resemble those of Florida today. With more golden years to play, you’ll want the funding to make them fun! “Today,” Rosell says, “going gray means time to play.”

• Health/long-term care: Sadly, the escalating costs associated with long-term care during retirement can make the possibility of outliving one’s retirement income a reality for many. Statistics reveal that as we age, there’s an increased probability of our eventually needing assistance with basic daily activities. The truth is that most of us will need long-term care in our later years.

• Market risk: Economic recessions have occurred throughout the history of modern economics and always will, averaging one almost every nine years. If the market loses 50 percent one year and then increases 50 percent the following year, where are you? Many people get this wrong; after the fall and subsequent rise of 50 percent, you will have lost 25 percent. “This happened twice in the last decade,” Rosell says.

• The sequence of returns: Gains or losses, or the order in which you receive your returns, can have a major impact on your retirement portfolio. It can mean the difference between having enough income in retirement and running out of money too soon. Be careful when an analysis states that you should achieve your goals by obtaining a specific rate of return. In most cases, this statement has not accounted for the sequence of returns.

“These are by no means the only tricky slopes that may have an affect on your retirement,” Rosell says. “Just as you have worked a lifetime to have money for your golden years, now is the time to manage your wealth wisely.”

About David Rosell

David Rosell, author of “Failure is NOT an Option,” (www.DavidRosell.com), is a sought-after speaker who has addressed international audiences including the Million Dollar Round Table. He is a recipient of the Retirement Distribution Certificate from the University of Pennsylvania’s Wharton School of Business, and has been featured on NPR.  His company, Rosell Wealth Management, was a select finalist in 2008 for the management of the $500,000,000 Oregon 529 College Fund. He is the past chairman of the Bend, Ore., Chamber of Commerce, the City Club of Central Oregon and his Toastmasters chapter. With a current tally of more than 65 countries on four different continents, Rosell has a quest for extreme travel and adventure.