For widows, having to deal with a traumatic personal loss plus the finances and other tasks of daily living can be overwhelming. The best way to ease the burden is to “be involved with your finances ahead of time so you only have to deal with the grief,” says Alexandra Armstrong, a certified financial planner and co-author with Mary R. Donahue of On Your Own: A Widow’s Guide to Emotional and Financial Well-Being. 

Armstrong herself became a widow in 2023, and when I interviewed several of my women friends who had become widowed in the past few years, all three seconded her advice. 

“If you really want to do a good thing for yourself, make a list ahead of time, keep it one place and take it out once in a while to add to it,” says my friend Elinor, whose husband, Walter, died in 2022. “That would have made things easier for me.”

In addition to financial information, Elinor recommends keeping a record of big-ticket household items: “When does the roof have to be replaced? How old are the appliances? What’s the contact info for the plumber and the electrician?” 

Access to passwords is also a “huge issue,” says my friend Susan. When her techie husband, John, died unexpectedly in 2018, she was shut out of his computer and all his Apple devices. “It took me close to a year and a half to resolve all the electronic stuff,” says Susan. “A lot I had to give up on.” 

Because Elinor had access to passwords for her husband’s e-mail and other accounts, she kept them open for at least six months and was able to monitor them for notices of things she needed to take care of. “When all I was getting was junk, I knew I had done my job,” she says.

My friend Lorna urges couples to think seriously about housing options as they age. She and her husband, Peter, who suffered from ALS, had sold their home and moved to a continuing care retirement community. But when Peter died shortly after they moved in 2019, a CCRC wasn’t suitable for Lorna. “It took me four years to come up with a place I can think of as home,” says Lorna. She eventually purchased a house that the previous owner had outfitted to age in place. 

Susan regrets that she and her husband didn’t talk about funeral arrangements. John served as a Green Beret and had bought a burial plot in a military cemetery, but he had never discussed the service he wanted. When the time came, says Susan, “the choices had to be solely mine.” 

All three of my friends have found it beneficial to work with financial advisers — and they prefer to work with them in person. After about a year, Lorna switched from her husband’s adviser to a new one because “I wanted someone who would call me back.” 

Armstrong, who is founder and CEO emeritus of her own financial advisory firm, is sympathetic on both counts. “Any new relationship with an adviser should be personal,” she says. “A widow should say that up front and ask whether the adviser would be comfortable doing that.” (Search for an adviser through the National Association of Personal Financial Advisors.) 

Advisers can also be helpful for sorting out thorny tax issues, such as your new filing status, any medical expenses for the deceased spouse and rules for inherited IRAs, which are “ridiculously complex,” says David Silversmith, senior tax manager with Eisner Advisory Group in Melville, N.Y. 

On a personal note, Susan advises giving yourself at least two years to adjust to your new situation. “I think you have to go through a cycle of holidays first,” she says. As time goes on, “you feel the loss as an ache rather than a sword through the heart.”

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• A Financial Checklist for Widows

March is Women’s History Month, an annual celebration of the contributions, achievements and impacts of powerful women throughout history. One thing worth celebrating this March is women’s increasing economic power. 

Women’s History Month started on March 7, 1982, as “Women’s History Week” and continued every year until 1987, until it was extended to include the entire month of March. Thanks to petitioning from the National Women’s History Project, every March from then on was declared “Women’s History Month'' and dedicated to recognizing achievements women have made over the course of history. Both International Women’s Day and Equal Pay Day are also celebrated in the month of March.

What better time than now to shine a light on the large number of women taking on more financial responsibility? More and more women achieve greater financial independence despite facing economic hurdles. 

This Women's History Month, women are taking on more financial responsibility

Allianz Life recently released their 2023 Women, Money and Power Study, which shows a significant number of women taking on more financial responsibility. Although women weren’t allowed to open a credit card until 1974, that hasn’t stopped them — the study found that nearly half of all women (49%) consider themselves their household’s CFO, compared to 41% in 2021. And for married women, there’s an even higher jump — 34% in 2021 to 43% in 2023.

Furthermore, the study also found that the number of women who identify as the primary breadwinners in their families has increased from 34% in 2021 to 43% in 2023. This was most commonly felt among millennial women. Additionally, 51% of women reported that they felt more financially savvy than their spouse or partner.

The study also found a correlation between women’s increased financial independence and the number of women seeking financial guidance from a professional. Currently, one in three women (33%) meet with a financial professional, up from just 26% in 2021. 

"A great first step for anyone is to increase their knowledge around investing, budgeting, and general financial planning," Jaime Eckels, a certified financial planner and Wealth Management Partner with Plante Moran Financial Advisors tells Kiplinger. 

Professional guidance can help women develop a long-term financial strategy, which in turn bolsters financial confidence  — something many women are still lacking. In fact, 73% of women wish they would have met with a financial professional sooner.

A study from Achieve found that 68% of women are either “not very” or “not at all” confident in their outlook for the economy in 2024, compared to 57% of men. And Allianz found that women are feeling less secure financially than they did in the past, with only 64% of women saying they feel secure, compared to 72% in 2021. Just 52% of women reported feeling confident about their retirement plans. 

“What we found in the study that’s interesting is that while more women are the breadwinners and CFOs of their household, there isn’t always a strong sense of financial security," Heidi Vanderkloot, head of FMO distribution at Allianz Life Insurance Company of North America, tells Kiplinger. "We can conclude that economic resources don’t necessarily translate to financial confidence. In the study, we asked women about their main worries and what keeps them up at night. The top worries were running out of money in retirement, rising costs of health insurance, and loss of a significant other."

The gender pay gap impacts women's ability to save

Although women increasingly take financial matters into their own hands, they still face economic inequalities. A substantial hurdle women have to face is the gender pay gap — the difference in median hourly earnings between men and women who work full or part-time. In the U.S., women earn 84 cents for every dollar a man makes, meaning women have to work longer than men just to earn the same amount. A woman has to work about 14.5 months to earn the same as a man in 12 months. The gap in wages cannot be explained by one singular reason, but instead persists due to multiple factors — like occupational segregation, educational attainment and gender discrimination. The gender pay gap significantly impacts women's capacity to save, putting them at a disadvantage.

"It’s not uncommon for a woman to take a break early in her career to care for children or aging parents, which can mean they miss out on salary increases and career advancements. Even moving to a part-time position can mean they may not be eligible for full benefits like 401k contributions or healthcare coverage," says Eckels.

In fact, women have significantly less saved in 401(k)s than men — with the average account balance for men being 50% greater than that of women, according to BofA’s 2023 Financial Life Benefits Impact Report. 

"This can create financial planning obstacles because saving early allows people to maximize time for their investments to grow and compound — meaning a loss of income opportunity early in a career can have a big impact on retirement savings down the road," explains Eckels. "And because women typically live longer than men, their retirement savings are particularly important."

In 2020, women reported annual contributions to retirement accounts that were around 30% lower than men’s contributions. Furthermore, according to Achieve, 45% of women reported having zero emergency savings, compared to 32% of men.

However, you can alleviate these worries. "Writing down a long-term financial plan is a great example that can help many people feel more confident in their finances and where they’re headed for the future," shares Vanderkloot. "A strong strategy will include ways to address risks that could cause them to spend down their savings faster than expected during retirement. Those risk management strategies could include adding financial products like an annuity that offers a level of protection from risks to their portfolio like market volatility, inflation and longevity.” 

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Tuesday is Equal Pay Day, according to the National Committee on Pay Equity. This date symbolizes how many months into a year women must work to earn what men earned in the previous year. This year, Equal Pay Day lands on March 12. That means the average woman working full-time has to work about two and a half months more than the average man to earn what he earned last year. 

Women earn 84 cents for every dollar men make

“Women’s labor force participation is the highest it has been in decades, and the gender pay gap is the narrowest it has ever been on record. Yet, despite this progress, the fight for equal pay continues,” according to the Proclamation on National Equal Pay Day, 2024 during the Biden Administration.

And although the actual wage gap between men and women generally widens or narrows depending on your level of education, age, occupation, tenure, race and ethnicity, it is so much more than just a paycheck. It also sheds light on equal opportunity, dignity and fairness in the workplace. 

Occupations and median earnings

The Census Bureau's report on Equal Pay Day and women in the workplace looks at different examples of occupations and median earnings over the past 12 months. Here are some of the standout findings.

Equal Pay Act of 1963

The Equal Pay Act of 1963 requires that men and women in the same workplace receive equal pay for equal work. The jobs need not be identical but must be substantially equal based on job content, not job titles. 

This law covers all forms of pay, including salary, overtime pay, bonuses, stock options, profit sharing and bonus plans, life insurance, vacation, and more. If wages are equal between men and women, employers may not reduce the wages of either sex to equalize their pay.

Paycheck Fairness Act

“We are making tremendous progress, but there is still much more we must do, President Biden said in the Proclamation. “My Administration continues to call on Congress to pass the Paycheck Fairness Act — commonsense legislation that would increase pay transparency and give workers more tools to fight sex-based pay discrimination.”

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• More Americans Are Saying No to Full-Time Retirement

Women have made significant strides in the business world over the last few decades — even more so as the U.S. continues to rebound from the effects of the pandemic. In fact, according to a recent report from Gusto, women started 49% of new businesses in the U.S. in 2021, up from 21% in 2019.

As exciting as it may seem to start a new venture, female entrepreneurs are also up against a host of issues that their male counterparts do not always face. Family commitments, inherent biases and evolving gender roles make opening and running a successful business uniquely challenging for women. The lack of adequate outside support and advice can also create an untenable operating environment. 

Below are some of the typical roadblocks women who own small businesses encounter, as well as guidance on how to navigate them.

Sustaining wealth and building a network. One of the major keys to growing a business is having the right network of people at your disposal to allow for natural expansion. This might mean a strong employee base, but it also includes outside support, such as business groups or professional counselors.

The 2020 annual report from the National Business Women’s Council states that 90% of women-owned businesses have no employees. This is primarily because most female-led businesses are service-based (event planning, marketing, writing, etc.) and do not lend themselves to having multiple employees. However, this type of organization is difficult to sell as ownership retires or decides to no longer manage the day-to-day.

One of the biggest decisions a business owner will make is when, and if, to hire employees. The decision to hire often comes down to available cash flow and whether an owner desires to actively grow her business.

For this reason, it’s important to determine whether a business will be utilized as a lifestyle business or be viewed as an asset to grow for future sale or legacy wealth. Many women begin their business as a passion-focused endeavor to earn income and live and work on their own terms. Others to grow and scale a business for future generations. Assembling a team of professionals that may include an accountant, attorney, business coach and financial adviser will aid decision-making in growing and investing in your business.  

Effective business credit and funding. Knowing the best ways to finance a business and fund growth can be a confusing, onerous process. Whether it’s through traditional lines of credit, outside investment or cash, deciding on the right approach can be overwhelming. For women, the process is often even more challenging.

Businesses led by women are 63% less likely to obtain venture capital (VC) funding than those led by men, according to researchers from Columbia Business School and London Business School. Women are also less likely to receive loan approvals from financial institutions simply because of biases against female business leaders. Research shows when women pitch venture capital, they are asked prevention-coded questions as opposed to promotion-coded questions received by men. Investors also tend to back individuals who share a similar background, leaving women at a disadvantage in front of a male-dominated financing team.  

Sometimes, working with an outside consultant like a financial adviser can help you decide what option is best for you and your personal goals. They can also help you identify alternative funding options that you might not have thought of initially, such as grants or loan programs, and alert you if you are taking on too much debt.

Family and career balance. While we’ve made considerable progress in combating antiquated gender roles, some old habits are hard to kick. Women typically shoulder most of the household-task burden in families, including being the primary caregiver for children.  

Aspiring female entrepreneurs are more likely to start their businesses once their children are of school age, putting them at risk for additional biases, such as ageism and traditional gender roles associated with being a mother and taking time out of the workforce to raise children.

The best way to combat this issue is to deepen your bench. No one person — woman or man — can run both a successful business and a successful household alone. You need advisers, employees, business groups, family members and others to fill in the gaps you simply cannot fill.

Start by joining small-business groups dedicated to women and partnering with like-minded professionals. National networking organizations such as International Women’s Forum have local chapters. Meetup.com is helpful for finding local, niche-oriented groups.  Set aside time for work vs. home life and use available resources without guilt.

Lastly, remember to take time for yourself. Mental health plays a major role in creating a sustainable business and home life.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Kamila Elliott is the first Black chair of the Certified Financial Planner Board of Standards, a nonprofit that establishes and enforces the requirements for the CFP certification. Elliott is CEO and founder of Collective Wealth Partners.

You’ve said one of your key goals as chair of the CFP Board is to increase the number of women and minority planners, along with attracting more young people to the profession. How do you plan to do that? By raising awareness. I didn’t know what a financial adviser was until I was in college. My mom didn’t have a financial planner, and neither did my grandparents. The CFP Board just hired someone whose goal is to work with high schools to create more financial literacy and awareness. At colleges, we have more than 300 programs where we help people reach CFP certification, and we want to increase the number of programs. We also have a goal to increase the number of CFP Board registered programs at HBCUs [historically Black colleges and universities].

Are some college grads deterred by the cost of becoming certified? We’re working to remove any financial impediments people may have on the path to certification. We have multiple scholarships available for CFP certification education and exams, and we have mentorship programs for diverse individuals and women. Financial professionals have a higher median salary than the average college graduate, and you’re helping people reach their financial goals. This is a profession where you can do good for yourself and do good for others.

What can the financial planning industry do to reach out to people who need advice but don’t have a lot of money to manage? We’re seeing a little more creativity in how firms structure their planning fees. Instead of using an assets-under-management model, they’re doing things like subscription models in which people pay a monthly planning fee. If you don’t have a lot of assets, you may not need as much complexity, so they are creating a structure in which the fees are commensurate with the level of planning provided.

At a time when individuals are turning to everything from TikTok to Reddit communities for investing advice, how can the CFP Board demonstrate the value of working with a CFP professional? On those forums, you don’t see much conversation about short-term and long-term capital gains rates. You don’t see conversations about whether you have the right estate plan. We’re happy that people are talking about investing, but we’re the ones they go to when they’ve made money. As you have more assets, there’s more complexity. This is a fairly new profession, and we’d like to do more research to show the public that when they work with a CFP professional, they’re able to reach their personal goals more quickly and see a difference in investment returns. Just as when you see a doctor you have better health, if you’re working with a CFP professional, you’ll have better financial health.

The market has been extremely volatile recently, particularly in specific sectors. Any advice for investors? I spent most of my career at the Vanguard Group, and the advice there was always “stay the course.” Your asset allocation should be reflective of your short-term and long-term goals. If you have the right allocation, there’s no need to make any changes to your portfolio right now, unless something has changed with you.

Pamela Norley is president of Fidelity Charitable, the largest donor-advised fund in the U.S. Fidelity recently published “Women and Giving,” an analysis of how the pandemic affected women’s philanthropy.

Since her divorce from Amazon founder Jeff Bezos, MacKenzie Scott has given away more than $8 billion. What can women—and donors in general—learn from Scott’s philanthropy? It’s really exciting to see her sense of urgency with respect to giving. She’s doing it very quickly, with a recognition of the need that’s out there because of the pandemic. Scott has been identifying charitable organizations that generally have not been well funded. They don’t do a lot of marketing or have a lot of publicity. But the big thing she’s doing, which is very well received in the nonprofit community, is making un­restricted donations. When people make unrestricted donations, they’re allowing the management of the nonprofit to use the money in the way that they deem best to address their mission.

How did the pandemic affect charitable giving by women, and philanthropy in general? The pandemic has reinforced for both men and women what really matters, which is helping others. Women have always had a high commitment to giving, but it increased during the pandemic. We have been doing a study for a while that asks, How important is giving as part of your life? Post-pandemic, 84% of women said it’s a signi­ficant part of their lives. That’s up nine points from the last time we did that survey. Post-pandemic, 81% of men said giving is a really important part of their lives. That’s up 12 points from the last survey. Donors also were moved to address the economic impacts of the crisis. Every year we list the top 20 organizations our donors support. In 2020, we had three food-focused organizations on that list for the first time ever. People recognize there is an enormous need for basic nutrition, which is necessary for people to live their lives.

What giving trends have you seen among millennials? We just did a report a couple of months ago on the future of philanthropy, and the big insight we gained through this research is that millennials are taking a very holistic approach to philanthropy. First, they’re focused on working for a company that aligns with their values. Second, they’re making decisions as consumers to give money to brands that are making a difference in the world. Third, they’re doing impact investing. And fourth, they are generous, even though they may not have a lot of money. Charitable giving has become charitable living for that generation.

The victims of the condominium collapse in Surfside, Fla., are receiving millions in donations. Inevitably, some scammers will try to exploit the disaster. What’s the best way to help victims of disaster? You should give to organizations that are very well versed in responding to disasters. Big organizations that are used to delivering to a community that’s faced with a disaster have scale, technology, and volunteers that allow the highest level of service to be achieved in a short period of time. Disasters create a significant opportunity for people to take advantage of the generosity of Americans. That’s why we generally point people to larger nonprofits that have a history of success in helping people.

Annamaria Lusardi is a professor of economics and accountancy at George Washington University and academic director of the university’s Global Financial Literacy Excellence Center. She has done extensive research on the topic of women and financial literacy. Her most recent paper is “Fearless Woman: Financial Literacy and Stock Market Participation.”

Based on your research, what is the current state of financial literacy among women? In 2017, we created the TIAA Institute-GFLEC Personal Finance Index to examine financial literacy among U.S. adults across eight areas of personal finance. Women know less in almost each of them compared to men—and when there isn’t a difference, men also know very little. The areas with the biggest gap are investing; insuring, which includes both insurance products and things like emergency savings; and understanding risk—for example, the risk of investing in a single asset.

To what do you attribute the gap? It’s both lack of knowledge and lack of confidence. In every country we survey, we see the same pattern: Women are disproportionately more likely to answer “do not know” when we ask a question. Then we ask the same question several months later, take away the “do not know” option and ask how confident they are in their answer. Women are less confident than men, even when they are correct. Being cautious is very, very good, but there is a difference between being cautious and being fearful, which can affect investing in the stock market.

What can we do to address the confidence gap? One important barrier is language. Women don’t speak the language of finance. It’s a very sensitive topic. Some are afraid they won’t understand it, and for others it’s taboo. Plus, people often associate money with trouble. We need to change that language. My first personal finance class was mostly men with a small group of women. Then I changed what I do, and my class has filled up with women.

How did you change your teaching methods? I tell them we will start with plain English, and I use myself as an example. As an Italian woman, I have the lowest probability of being financially literate among the people we survey in the G7 countries. But I have reversed the statistics. I also use a lot of humor. I have a funny Italian accent, which is not intimidating, so I use that to my advantage. And I tell them this is not just a course in investing. It is a “happiness project.” You will learn the tools you need to achieve your dreams.

How can we adapt this outside the classroom? Talk about what women care about. They care about others, so tell them how financial knowledge can help them take better care of their families and themselves. It’s important to put financial literacy in schools, so you can reach everyone, including those who are least exposed at home. Girls and women often don’t speak with each other about finance. The workplace is also important because you have to reach women where they are. There should be a personal finance column in publications they read—for example, those related to their kids. You need a “Sex and the City” with a financial literacy twist.

How has the pandemic affected women financially? They were a vulnerable group even before, and this has made them more so. When we look at women as a group, we find large differences across race and ethnicity. For example, when you look at how people face financial shocks, white women might be more likely to use financial instruments and Black and Hispanic women would depend more on transactions within the family. But even controlling for income and education, those with higher financial literacy fared better. So we have an opportunity not just to respond to a crisis but to create a stronger, more resilient group. Financial education is a response to a world that is always changing.

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Links and resources mentioned in this episode:

• A Kiplinger Special Report: Roth Conversions
• Your Guide to Roth Conversions
• Marguerita M. Cheng, CFP®, RICP®
• Kennet Lyle Block

Transcript

David Muhlbaum: The COVID-19 pandemic and accompanying recession have been hard on women with millions of jobs lost. What does this mean for future earnings and retirement savings? We talk with financial planner Marguerita Cheng about how she's helping clients adjust. Also, what dad taught us about personal finance. Coming up on this episode of Your Money's Worth. Stick around.

David Muhlbaum: Welcome to Your Money's Worth. I'm kiplinger.com senior editor, David Muhlbaum, joined as ever by my co-host, senior editor Sandy Block. How are you, Sandy?

Sandy Block: I'm doing great, David.

David Muhlbaum: I have one single financial trivia question for you. I'm going to give you someone's first and middle name and you're going to give me the last name. Okay?

Sandy Block: Okay.

David Muhlbaum: William, Victor...

Sandy Block: Roth. William Victor Roth, Senator from Delaware. Last Republican the first state elected to the United States Senate.

David Muhlbaum: Yep. That is some crazy detail you got there, but it wasn't what I was expecting. Come on. Why do you know who he is? Because his name is on...

Sandy Block: Obviously David, the Roth IRA.

David Muhlbaum: Well, I think we'd be hard pressed to find another product known for a politician. No, seriously. Like, there are laws that sometimes carry the names of their sponsors. I'm thinking of Sarbanes-Oxley or McCain-Feingold or my old favorite, Dingell-Tauzin. It's all very Washington stuff, but Roth, he lives on.

Sandy Block: Yeah. Well, that's partially because he created a framework that has held up really well. Those laws you mentioned... Well, they've been superseded by court decisions and new legislation and whatnot, but the Roth IRA is still soldiering on more than 20 years later.

David Muhlbaum: Right. Now, why do I want a Roth IRA again?

Sandy Block: Because it's simple and there's a very good chance it will reduce the amount of taxes that you have to pay on your savings, which everybody likes. When you put money in a Roth, as long as you've owned it for at least five years, and when you're 59 ½ and you take the money out, all of your earnings, everything that's in there, your contributions are tax-free. You can take out a little bit, you can take out a lot, you can leave it to your kids. But compared to traditional IRAs, which are subject to all kinds of rules and taxes, sometimes 100% of the amount that you take out, a Roth is really, really nice thing to have in your portfolio because it's so easy and it's so flexible. But David, you didn't bring up William V. Roth Jr. just to make sure people remembered his name.

David Muhlbaum: No. William V. Roth Jr. No, you're right. My interests are not purely historical, they're partially promotional, because I want to push a link to a special report Kiplinger's just published about converting an existing IRA to a Roth IRA, which is one of the main ways people get on the Roth track, but it's not super easy and it has potential tax consequences and social and Medicare effect. So, you want to get it right and that's the point of this report: helping with that.

Sandy Block: And it's a really good report, David, but what's the catch?

David Muhlbaum: Well, you'll have to give us your email address, but don't fear, it's an opt-in situation. So if you want to hear more from Kiplinger beyond this report, you have to check to do that. And frankly, if you don't want to play around with that at all, you can just search, Your Guide to Roth Conversions. I'm proud to say our content dominates that search.

Sandy Block: I know, and I wrote it.

David Muhlbaum: Exactly. You're welcome, Sandy. When we return in our main segment, the shecession, what women and men can do to cope.

David Muhlbaum: For our main segment, we're joined by Marguerita Cheng, the CEO and founder of financial advisory Blue Ocean Global Wealth. She's a certified financial planner who has contributed to a variety of outlets, including well, Kiplinger. You'll find her content in our Building Wealth channel. Welcome, Rita.

Marguerita Cheng: Thank you so much for having me. So excited to be here.

Sandy Block: You've got an impressive array of certifications, Rita, but the one that stood out to us for today's discussion, was your work on women's initiatives at the Certified Financial Planners board. This episode is going to air on International Women's Day and personal finance issues affecting women is what we want to talk to you about.

David Muhlbaum: Yes, and notably, this women's day comes on what's been an extremely difficult year, specifically in the economy. Coming into 2020, women had just hit this milestone of making up the majority of the workforce and then wham, pandemic. Who's losing the bulk of jobs? Women, and this is quite different from 10 plus years ago during the Great Recession. Now, we're not a think tank and you're not a labor economist, but you do know the topic and you have clients, which puts you closer to the situation. So, what are you seeing out there?

Marguerita Cheng: Sure. Well, the one thing I can say is I am based here in Maryland and of course I love the Washington Post and there was an article in Sunday's paper that talked about childcare and infrastructure. And when people think infrastructure, they think roads, bridges, public transportation, and that's true, that is infrastructure, but we need infrastructure to support women in the workplace. And that means childcare. So what I'm seeing is particularly for women, especially those who have school-aged children, it has been challenging. You can't just leave your eight-year-old in front of the computer all day, but first of all, Child Protective Services might come. You can't leave children under 13 unattended and it kind of violates everything that we've told ourselves... Limit your screen time. So it has posed unique challenges.

Sandy Block: So Rita, you're talking about... We were talking about this off mic about women who still have jobs -- and for some people that's a problem they'd like to have -- and maybe they even have above-average family income and savings. And it's the nature of a lot of the news coverage of this so-called shecession to focus on the hard luck stories. People have trouble getting food on the table, but it sounds like you're saying this is kind of tough for everybody.

Marguerita Cheng: It is tough for everyone. I would be remiss if I didn't acknowledge that people of certain communities are more affected than others and certain occupations. Women have experienced either loss of income or income volatility and in some situations I did tell clients it's okay to cut back on your retirement plan contributions. This is last year, they were furloughed. So they were glad that they still have a job and they have healthcare, but they did have to cut back. Now, things are a little bit better for them and they're able to increase their contributions, but it still is nonetheless challenging. So I think being a certified financial planner, I don't just help people manage their portfolio, I'm helping them manage their financial plan and ultimately manage their financial lives. So sometimes hearing from somebody, that it is okay for you to temporarily suspend 401(k) contributions or reduce them, that way you can have your cash flow to make sure you're able to pay your mortgages and other bills.

Marguerita Cheng: Sometimes it's good for people to hear that that is okay. These are extraordinary times and sometimes it's okay to just pause and just focus on the more short to intermediate-term priorities.

David Muhlbaum: But at the same time, that's the sort of fundamental risk or that's the fundamental issue of women having a harder time building up retirement savings. That's one of those long-term challenges that women face.

Marguerita Cheng: Absolutely. With retirement, there are challenges. So we talked about how there is a wage gap or income gap, which actually then leads to the wealth gap, because women who do work part-time or who are independent contractors are less likely to have access to a retirement plan. And if their earnings are less, that means their Social Security benefit will be less. And if their earnings are less, they may not be able to save as much and they might not have access to my goodness, a pension or a defined benefit plan. And then you couple that with longer life expectancy and living longer isn't necessarily a risk or a liability, it's just something that we need to be aware of. So we have smaller guaranteed lifetime income, smaller asset bases to fund longer goals. So, it is very important that we are being aware of this challenge and doing our best to address it.

David Muhlbaum: Those are concerns women have faced for well, a while. What I'm trying to wrap my head around is why is this recession, this shecession, why is it different from 10-plus years ago? Why is it women who are taking the hit, losing so many jobs in the workplace?

Marguerita Cheng: So this is what's interesting and I do remember the Great Recession, 2007 to 2009. It seems so long ago, but it's like one of my clients told me, "Today I am 60. During the great recession, I was 48. Oh my God, I'm 60." This is my client talking, not me. Back then, education... Like the jobs that were not affected then are almost like jobs that are affected today. Service, more human contact. Also, if you're in healthcare... I actually have a client who is a registered nurse and one would think, "Oh my goodness, your job is secure." She's a registered nurse at Children's Hospital. Some of the sickest patients and some of these procedures have actually been canceled. So even though she's a registered nurse at Children's Hospital, like she didn't lose her job, but the opportunity to pick up extra shifts is just not there.

Marguerita Cheng: So, she did say this to me and I did help this family refinance their mortgage. They were able to save a lot of money, like almost $600 a month. She said that that savings came at a great time. She's blessed because she has a job and she has health insurance, but she's not able to pick up those extra shifts.

Sandy Block: So Rita, we're talking a lot about some macroeconomic issues, but Kiplinger is all about actionable advice. And I know a lot of your clients are women. Given the challenges that women face, not just now, but ongoing because of lower wages, longer lifespans, divorce, I just wonder when women come to you, how do you advise them to sort of overcome some of these obstacles that we can't solve on this podcast? But we know they're out there, particularly with respect to retirement, because we know that a lot of women really struggle in retirement, that there's a big fear that they'll outlive their money, require long-term care. I'm just wondering, some of the basic advice you give to women to overcome some of the obstacles that they're facing?

Marguerita Cheng: So the first thing that I do is I always start with financial planning. I actually do not accept money management-only clients. And the reason for that is I want to understand their assets, their liabilities, their income, expenses, as well as insurance they have. So, that's their baseline. And sometimes even if your baseline is bad, sometimes people don't even know their baseline. So we start there. Then we look at their employer benefits. We take the time to explain Social Security and discuss claiming strategies. And I think because I focus a lot on financial planning and the process, it's very educational. So people start to feel more comfortable and confident about their situation and taking action. I think for women... It doesn't mean this is not important to men. I want to be very clear, but women really value that integrated approach or holistic approach

Marguerita Cheng: And I can make sure I quantify that. So if a woman comes in and she doesn't have enough for retirement, but she has the cash flow and you tell her to save for retirement, it doesn't mean that she doesn't want to save, she may be thinking four or five steps ahead. "So, Rita, if you tell me to save more for retirement, I know that's pre-tax or post-tax and that 59 and a half, I might not have enough money in my cash reserve. So how does that decision affect my other decisions?" And so I think that that is particularly helpful for women understanding where they are and then based on action steps, how that affects their current situation and what they can do to improve it. And that way, it's not me telling them what to do, it's me guiding them and providing options.

David Muhlbaum: You're obviously in touch with your clients and adapting your guidance to them for the current circumstances, but you're also very much connected to the Certified Financial Planner board, the CFP board and the community more broadly. So, I'm wondering what's the buzz internally? Like what are planners talking about, both among yourselves and as policy, to help women cope?

Marguerita Cheng: So, we have known for some time that women are underrepresented in our profession, and that has consequences for the public because then if they are underrepresented in our profession, they may be underserved. Now, people say, "Marguerita, women represent more than 51% of the population. Women are not a niche." I understand, but broad-based, women are not served. And then if you have women of color or women of more diverse populations, the gap is even more severe. So what CFP Board is doing, and I am part of the WIN, the Women's Initiative, as well as the Diversity Advisory Group is we are making sure that we make room for women in the profession. How we do that is as a certified financial planner, CFP Pro, I take the time to make sure that I'm available to answer questions of what it's like to be a certified financial planner, how I prepare to be a certified financial planner and what the profession is like. Unfortunately, when people hear financial planner, they have a vision of like Wall Street or Boiler Room, and that's not the case. So, it's overcoming those perceptions and building awareness and then creating opportunities.

David Muhlbaum: We know the percentage of women in CFP, it's like 25%?

Marguerita Cheng: It's about 23%. Now what is interesting about this number, some people say, "Well, that number has been flat." It was 20%, 21%, 30 years ago when I entered the profession. The number of female or women CFP certificants has increased, but so has the proportion of overall certificants. So, there are more certified financial planners certificants who are women in 2021 than 2015 and 2016. That is a good thing. The percentage has increased slightly, maybe not as much because the overall population of CFP professionals has also increased.

David Muhlbaum: Got it.

Marguerita Cheng: But I am on a mission to create awareness because it's not enough to just recruit women. Retention is very important.

David Muhlbaum: Which brings me to a question about... I'm sure there are plenty of women who want to have a woman as their CFP, but given the numbers, that may not always work. Is part of these initiatives you're doing helping male CFPs be better in some way or more responsive to women's concerns?

Marguerita Cheng: Absolutely. The reality is some women do want to work with a women's CFP and other women say, "You know what? I don't really have to have a woman CFP, but I want to make sure my CFP understands that I'm not just a woman. I have many roles. I'm wife, mother, daughter, caregiver, employee, entrepreneur." So, understanding that their lives are multifaceted, but it's absolutely true. We need to make sure that as a profession, we are sensitive to the needs of women.

Sandy Block: Rita, we have a lot of listeners and a lot of them are men and we don't want to rule them out. So I guess my question to you is we know the obstacles facing women, that they live longer, that they earn less, that often they're able to save less. What should men be doing to help their partners succeed, to prevent them from running out of money? What should men be doing?

Marguerita Cheng: Sure. So, I think that it is certainly okay if one partner or spouse takes a lead in the financial planning or financial decisions for the family. However, it is important that he, she, or they invite the other spouse, partner to the table. And here's exactly what I mean. It is never too late and it's never too early. My client today, she is 51. And she started planning with me when she was 36. And her parents had a planner, I never solicited. But one day her dad realized at this time he was 70. And he's like, "You know what? I think I need to work with your planner," talking to his daughter. And she's like, "Why? I thought you like your planner." "I realized..." This is the husband talking, "... that our planner doesn't really talk to your mom." And so, they became clients when they were 71 in 73.

Marguerita Cheng: And when I first met them, the wife was a little bit shy. But then in subsequent meetings, she'd come to the table and bring a notebook. And her husband, he wasn't being sexist. He's like, "You go girl, look at you being all prepared. Are you really taking an interest in personal finance?" This was so profound for me. She's like, "You know why I'm taking an interest? Because Rita actually takes an interest in me." She was 73 at the time and she's still alive and she's 78 today. So, the conclusion our story connect is it is certainly okay to be the lead, but at least invite that person into the decisions and conversations you're making particularly about when you decide to take social security or healthcare or long-term care issues, because this is something that's near and dear to my heart.

Marguerita Cheng: My parents were 14 years apart. And even though sometimes my mom might not have been interested in the details, my dad is no longer with us, but my dad made sure that my mom and I made sure too, was aware of what was in place to protect her so that... I know she misses my dad, but she is going to be okay in retirement.

David Muhlbaum: We were talking a couple of weeks ago with Mari Adam about couples and money. And one of the things that came up, one of the topics we discussed was spousal contributions to retirement plans, particularly when you had a differential of income between one of the spouses. This seems to me like it could be something that's become entirely topical because if you have a couple where one partner is now suddenly, and perhaps surprisingly out of the workforce, it could be time to reassess how their retirement is being funded. If they are no longer contributing to the retirement, maybe it's time for the spouse and in this case, it could be the husband, because we're talking about the shecession, to step up and make contributions to their retirement fund for them. Am I on to anything there, Rita?

Marguerita Cheng: I think that's a fantastic strategy. So I was talking about as you're in retirement being involved, but I like this. This is proactive and I've actually implemented that strategy. I really approach it with sensitivity because let's just say one spouse or partner is at home because it was their decision maybe to care for the children, or it could be a situation where maybe they lost their job. It's important and I've never had anybody be angry at me about this. I tell people that it's important that we are planning as a couple for your retirements. We want to take advantage of the tools that are available to us, right? And so, you don't have access to a retirement plan, but that should not preclude you from not being able to save for retirement. And I know you love your husband or wife, spouse, partner. That's not what this is about, but it's important that you have retirement set aside in your name. Not because he or she's going to take it. That's not what I'm saying, but it's important that just because your circumstance has changed, that your need to save for retirement has not.

Marguerita Cheng: So yes, I think it's a fine strategy, but it's always important that you approach it with sensitivity. You don't want the person who's not earning an income to feel that they're any less worthy and you don't want to feel like there's an issue of distrust or mistrust. I understand that can happen, but for purposes of conversation. So, David, I think it's a fantastic strategy.

David Muhlbaum: Thank you. And Rita, thank you so much for joining us today with your insights here for International Women's Day. We appreciate it very much.

Marguerita Cheng: Well, thank you so much for having me.

David Muhlbaum: So, Sandy, last week when we were talking with Cameron Huddleston, you mentioned that your father had died a few weeks ago. And my understanding is you're going to hold a memorial celebration for him in the next few days.

Sandy Block: That's right.

David Muhlbaum: Obviously again, my condolences and I'm sure you'll hear condolences from our community as well, but I thought maybe this would be an opportunity for while you're thinking about him, his life, his legacy, maybe to share something with us about what you learned from him about personal finance.

Sandy Block: Well, David, the thing I learned most importantly, and this is really striking me now because I'm settling his estate is that my dad really lived below his means. And he saved before everybody sort of realized that they needed an IRA or a 401(k). His company offered him stock at a discount and he thought that was such a good deal that he bought a lot of it. And as a result, I graduated from college debt-free. His house was paid for years ago. He pretty much lived off Social Security and a modest pension and his savings were there when I really needed it for his care. So, I think about the thing I learned most about my dad was just living not just within your means, but below your means. He would drive his cars until the wheels fell off.

And I'm sure other people thought we had a lot less money than we did, but in the long term it gave us so much more freedom and so much more flexibility to do the things that we wanted to do and to take care of things that we really needed to take care of. So, I really respect that. We weren't millionaires, but I think he lived a lot like the millionaire next door, which as the story goes, this is the guy who drove the oldest car, had the smallest house on the block, but probably had the most money in the bank.

David Muhlbaum: Right. What jumps out at me there is the idea of having freedom and flexibility and being able to take care of the unforeseen. Those are the upsides, the payoffs of that thrift your dad demonstrated. And I think that's what some people would describe as living comfortably, not the comfort of owning this or that thing, but the comfort of having reserves and knowing you're prepared.

Sandy Block: That's right. When he was getting older and medical expenses started going up or we needed to do things with the house, there was always money there for that. And I even remember him telling me, this is in his later years. He says, "When I go down to Walmart, I don't care what the grapes cost. If I want grapes, I buy them because I can afford that." So to him, that was the idea that was wealth, that he didn't have to check the price of grapes so he could just buy as many as he wanted, but I think that came from a lifetime of frugality. And the other thing it enabled him to do, which was really important to him, and I hope passes on to us, is he was very generous. He gave to a lot of charities. He had a lot of causes that were very important to him and he was able to help them out. And I think that enhanced his life. It was a very important thing to him and much more important than having a new car every couple of years.

David Muhlbaum: Yeah. That's the reward of giving, right? And I love the part about the grapes. Part of the trick of being thrifty is not letting it dominate you. To have those things where you can say, "What the heck, that's what I want, whatever." You need discipline to get to that place. But you also need self-awareness to remember to treat yourself and treat others. And please tell us something about the dogs. I understand that everyone knew him as the guy with the dogs.

Sandy Block: They all knew him as the guy with the dogs. My dad, when he retired fairly early, and that was another advantage of him having lived below his means, so he was retired on his own terms and he also had a pension. And his project, he adopted a Golden Retriever and trained that dog to do everything. And he got really interested in therapy dogs. His dogs were so well-trained that he took them to hospitals and nursing homes all over our area. The number of people that he... said he visited kept going up as he got older, but he claims he made at least 10,000 visits with these dogs. And he would just take them to visit people. Sometimes people who're very isolated, sometimes people with Alzheimer's who had never spoken, but just totally lit up when they saw the dogs and would react to them and respond to them. And the dogs were so well-trained that he could put treats on their paws and have them do little tricks and things like that. And they were very calm and really good with the old people.

Sandy Block: And that just gave him so much satisfaction. And that's what people remember about him, that he was the guy with the dogs. He would take them to Walmart and let them sit out front while he went in and shopped and come out and they would still be there, which just blew people away that these dogs would just sit patiently outside. And then he'd give them the bag and they'd carry it to the car. So they were definitely very famous in our town.

David Muhlbaum: That's awesome. They would sit outside? Unleashed, on a sit command and wait for him to come out?

Sandy Block: Yeah, on a sit command. They would sit in front of the Walmart and because people would come by and pet them and talk to them, but they wouldn't leave. They would just sit there until dad came out and then he would give them his bag, whatever he bought and they would carry it back to the car. That's how well trained those dogs were. That was his second career, training these dogs, and he was really good at it. And they were good dogs.

David Muhlbaum: Well, thank you for sharing, Sandy.

Sandy Block: Thank you for asking, David. It gives me a lot of peace to talk about my dad.

David Muhlbaum: That will just about do it for this episode of Your Money's Worth. If you like what you heard, please sign up for more at Apple Podcasts or wherever you get your content. When you do, please give us a rating and a review. And if you've already subscribed, thanks, please go back and add a rating or a review if you haven't already. To see the links we've mentioned in our show, along with other great Kiplinger content on the topics we've discussed, go to kiplinger.com/podcast. The episodes, transcripts and links are all in there by date. And if you're still here, because you want to give us a piece of your mind, you can stay connected with us on Twitter, Facebook, Instagram, or by emailing us directly at podcast@kiplinger.com. Thanks for listening.

Carrie Schwab-Pomerantz, the daughter of Charles Schwab, is board chair and president of the Charles Schwab Foundation; senior vice president of Charles Schwab & Co.; and board chair of Schwab Charitable, a donor-advised fund. She is also author of The Charles Schwab Guide to Finances After Fifty. She and I recently spoke about retirement-planning advice for women.

Do women face special circumstances when it comes to retirement planning? As you know, women tend to live longer than men, and they move in and out of the workforce to care for children and parents. So they tend to have less money saved for a longer retirement.

How can they overcome their disadvantages? The key is to have an investment strategy. It’s important for we women in particular to educate ourselves about investing and be engaged starting at a young age.

Do you think that’s happening? In 2018, Schwab surveyed young people between the ages of 16 and 25. We found that young women were doing all the right things. They were more driven than young men to achieve financial independence, and they see more value than men in creating a plan to achieve their goals. But on average, they had saved 40% less than young men. Also, twice as many young men versus young women had investment accounts, and twice as many men as women say they would invest spare cash.

What’s the solution? As parents, we have to step up and make sure our children—especially girls—are exposed to the financial world and investing. Our studies show that when it comes to money, parents talk differently to their sons and daughters. To their daughters, they emphasize saving and budgeting. With their sons, they are more likely to talk about investing and estate planning.

You are the mother of three young adults, two sons and a daughter. How did you educate them about investing? When they were about 13 years old, I had them come to Schwab and open a custodial investment account with money from their savings. When they were 16 and had earnings from a job, they opened Roth IRAs. It took me longer to get my daughter interested than my sons. She asked me if I would open the account for her, but I said no. It’s important to expose young people to the experience and demystify it.

Were you successful? Now they are all savers and investors, and they feel very comfortable with it. My daughter is 24, and her friends are asking me for help. They’re saving 10% and think they’re saving for retirement, but they forget the investing part. That’s where wealth is created, not just by putting money into a savings account.

Any other advice for women? Use all the retirement-savings vehicles that are available to you. That means 401(k)-type plans if you have one at work, IRAs, or spousal IRAs if you’re not in the workforce but your spouse is. If you decide to drop out of the workforce or cut back, you don’t want it to hurt you in the long run.

How has COVID impacted women’s retirement prospects? Women have been affected more than men because they often have service jobs or dropped out to take on child care responsibilities. For many people, this has been a wake-up call to make a plan (see Financial Planning and Investing: Women Closing the Confidence Gap). It doesn’t have to be super comprehensive, just taking steps to understand what you own, what you owe, your budget and cash flow. If you’re married or in a relationship, you should be involved in all financial decisions. That’s a matter of self-respect. And don’t be afraid to get help from an expert. There’s no such thing as a dumb question.

Stephanie Creary is assistant professor of management at the Wharton School at the University of Pennsylvania, where she is an identity and diversity scholar. She has researched workplace diversity practices at a variety of organizations, including corporations, hospitals and the U.S. Army.

Why should investors care whether a company has a diverse board of directors? McKinsey & Co., a management consulting firm, has found that companies with diverse boards outperform their peers. There’s also a lot of academic research that has analyzed the relationship between the composition of top management teams and financial performance. For example, a recent study from the University of Texas at Dallas found that firms that were diverse in upper and lower management performed better than other firms. Their workers were more pro­ductive, too. That’s good for the bottom line.

Won’t some companies be tempted to add a token woman or minority to their board? How can that be avoided? First, if you’re a company, you don’t just pick any person of color or woman. You pick people you believe in who will help contribute to the gaps in expertise that you have. And you don’t pigeonhole them into being a single-issue director.

Next, you need to have other players hold corporations accountable. For example, State Street, a major investment management firm, has said that it will vote against board members of companies that fail to disclose the racial and ethnic makeup of their boards. And Nasdaq recently proposed requiring that every company listed on its stock exchange have at least one woman on its board and one board member who is an underrepresented minority or LBGTQ. The firms that don’t meet the standard will be required to explain why they can’t. That’s holding companies accountable.

In 2019, the Business Round­table, which is made up of the chief executives of the largest U.S. companies, issued a statement encouraging members to take into account the interests of employees, customers and their communities when making business decisions. Have major corporations embraced this philosophy, particularly when it comes to minorities? Yes they have, but one size doesn’t fit all. Target is a good example. After the protests in Minneapolis over the death of George Floyd, the company decided to reopen a store that was damaged by the riots. Target’s approach was to have conversations with people in the community, not just community leaders, about how the store could address their needs. JPMorgan Chase and Citigroup announced last fall that they are changing their lending practices to make sure that people of color have access to mortgages. JPMorgan Chase also said it’s going to tackle the lack of diversity in its own workforce.

When can investors expect to see the results of these initiatives? Investors tend to measure company progress quarterly, but that’s very short-term. A better benchmark is one year from an announcement that a company has changed the composition of its board or has made a com­mitment to any other social justice movement.

We see reminders of the problems with gender parity every day. The passing of Justice Ruth Bader Ginsberg brought women’s struggles over the years back to the forefront. I just wrote about RBG last month, but this topic is worth discussing during the pandemic. Let’s see how far we have come … and how far we still need to go.

Making ends meet was a challenge before the pandemic. Even in families where both adults work full time, the average mom does almost 60% of the day care duties. In 2019 two-thirds of minimum wage workers were women. Women carry two-thirds of all student debt in the U.S., and in 2019, nearly a quarter of female-headed households lived in poverty; for households headed by Black or Latina women, the rates were closer to 30%.

As bad as all that, things have gotten worse for women since the COVID-19 pandemic struck, for several reasons.

Women Are Getting Hurt More Than Men by COVID

Typical recessions usually hurt male workers more as consumers cut back on expensive items like cars, computers and housing. This then affects manufacturing and construction, sectors that are more male dominated. But this recession is different. Researchers found that “This recession is hitting women harder. Between February and April 2020, male unemployment increased 9.9%; female unemployment increased 12.8%. The pandemic has ravaged in-person service jobs – at restaurants, hotels, Pilates studios, retail outlets and so on – which are disproportionately done by women.” Men are more likely to work remotely, while women, especially in caregiving and teaching jobs, most often have to be there in person.

I spoke with Samantha Ettus, Founder and CEO of Park Place Payments, a woman-owned fintech that trains women seeking opportunities to re-enter the workforce to sell financial services to small businesses. “COVID has the potential to reverse years of progress for women in the workforce," says Ettus. "If we don’t plug the dam, this brain-drain will derail the narrowing equality gap for generations to come. 865,000 women voluntarily dropped out of the workforce, a staggering four times the number of men. Alarmingly, half of the women who left, were women of color.”

But unemployment is only part of the story. Illness, sick children or parents, home-schooling and lack of day care fill out the picture for why women are hit harder in this environment.

The Future: Tips for Women to Get Back on Track

It’s very hard, because women did not have pay and work parity going into this recession. It is now thought that the pay gap ranges from 83 cents to 90 cents when you look at what women earn as compared to men. But there are things women can do to claw their way back out of this hole.

1. Get a handle on your spending. Keep a close watch on what you are spending now, as you have tightened your belt … and I hope you have been cutting out the non-essentials and frills in your budget. Cut out recurring expenses, such as gym memberships, streaming services and monthly subscriptions you don’t need. Look at all automatic monthly payments.
2. Build your emergency fund. Now is the time to make sure you have an emergency fund to cover you for about three to six months of expenses. This is the money to help you sleep at night if the unthinkable happens. This is easier said than done for many of us. The economic toll of the pandemic is even harder on lower-income people. “Lower-income adults are less prepared to withstand a financial shock than those with high incomes. Only about one-in-four (23%) say they have rainy day funds set aside that would cover expenses for three months in case of an emergency, such as job loss, sickness or an economic downturn, compared with 48% of middle-income and 75% of upper-income adults.
3. Work from home effectively. If you are working from home, make certain that you are productive and professional. Employees worry that companies are looking at many employees as being on vacation. Dress for meetings (at least from the waist up), and send follow-up memos and proactive ideas in emails. Make sure that you have a dedicated Zoom space that will not be interrupted by kids or pets. (I’m heeding my own advice as my three cats thought it would be a good idea to have a fight while I was doing a live TV segment.)
4. Speak up when you need to. It’s a scary time. Women are often nervous to talk about child and parent care situations that demand their time. They should not have to suffer from the “Wisdom of Solomon” where they have to decide between going to work or caring for loved ones. They are often hiding the demands on themselves, fearing that if there are more cutbacks or layoffs, they could be the most vulnerable. It’s time for our companies to step up. Go to your HR representative and discuss this fear and ask for a more flexible work schedule. If you can telework, ask for that. It will allow you to juggle kids at school and home in a more balanced way. If you have to be there in person, explain that you are fearful for yourself and loved ones. Will it make a difference? I hope so.
5. Keep up with your education. This could be a great time to take that online course to polish your skills.
6. Find ways to earn more money. Find companies that can offer permanent or side hustle opportunities now that can better suit your needs. There are companies out there. Research these online. Sam, from Park Place Payments shared that her company does just that.

We know that women do not enjoy the equality that they should. The pandemic has highlighted this as we take a real step backward in job security. But we need to move forward, as Justice Ruth Bader Ginsberg has taught us; “Real change, enduring change, happens one step at a time.” Keep marching.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As director of personal finance for Morningstar, the giant financial research firm, Christine Benz dispenses financial advice to all the firm’s clients. Kiplinger's editor-at-large Janet Bodnar spoke with Benz about her perspective in her job and what advice she would offer to women in particular. Here's an excerpt of that interview.

You recently tweeted that one of your favorite books on investing is Burton Malkiel’s A Random Walk Down Wall Street. Why? It was the top book on my reading list when I started at Morningstar as part of the copy-editing team. I thought it was incredibly well written and even playful, not something I expected from an investing book.

How did you advance from your start on the copy-editing team? Morningstar has a great culture and is very much a meritocracy, and from my earliest days as an analyst I was always getting pushed to do things beyond my comfort level. Morningstar managing director Don Phillips was a great role model.

Did anything in your background prepare you for working in the financial field? I come from a family of six girls, and that has always shaped my worldview. There were no boundaries about what I could and couldn’t do. My dad played basketball and tennis with me, taught me about investing in the market. I never thought about boys doing this and girls doing that.

Does being a woman bring a different perspective to your job? It makes me conscious that women tend to have more caregiving obligations. I’m not a mom, but I have a sister with an intellectual disability who lives with my husband and me for part of every year, so caring for her is a big part of my life.

What advice would you give to women in similar situations? When caregiving obligations arise, make sure you understand the implications for your own retirement plans. Many of my friends have cut back at work or become full-time moms. They’ve thought about how this works out for their budget now, but less about implications down the line. For example, they should take advantage of spousal IRAs so they can continue to save for their own retirement, which could last for 30 years.

What have you learned about women and the way they invest? I used to accept the wisdom that women tend to be more conservative investors than men, but now I believe the data show that it depends on a woman’s income. Women within the same income bands as men tend to adhere to pretty similar behavior as far as investing is concerned. Women in general are more likely to ask for help, using such things as target-date funds or managed accounts.

Is that a good thing? Potentially, yes. But women need to be discerning. Some women take the idea of delegating their financial affairs too literally. You need to do your due diligence.

How should investors be coping with low interest rates? Retirees in particular need to be very careful to look at total return instead of just yield, and be willing to sell appreciated securities, because an income portfolio is not going to cut it. Take a step back and construct the most sensible portfolio you can. For many retirees, a baseline allocation of 50% to stocks makes sense.

What’s your best advice for women? Maximize your human capital. Invest in your education, be thoughtful about your career, be assertive in asking for more money. My best investment advice is to match your risk to your longer life expectancy. With such low interest rates, you can’t afford to be too conservative.

Not long ago, I was on a panel at my alma mater, St. Bonaventure University, speaking to a group of business and journalism majors about career opportunities that spanned both fields. One of my fellow panelists was Erin Lowry, a 2011 SBU grad who created the Broke Millennial franchise and wrote Broke Millennial Takes On Investing and other financial books. My curiosity was piqued: How did a young woman who majored in journalism and theater find her way into personal finance?

“I fell into it backward,” Lowry told me. After graduating, she headed for New York City to find work in theater, but found herself working three jobs to cobble together survival earnings of $23,000 during her first year. She started writing about her experiences on her Broke Millennial blog, and it snowballed into a full-time venture.

Lowry gives a lot of credit to her upbringing. “Money was a regular part of the conversation in my family,” she says. Her parents paid for half of her college costs, and by using scholarships and earnings as a resident assistant she graduated debt-free.

As Broke Millennial, Lowry, 31, answers peer-group questions ranging from “How can I tell my friends that I can’t afford to split a dinner bill?” to “Is it too late to start investing if I wait till I’m in my forties?” It’s never too late, she replies. “You just have a different time line, so your risk and asset allocation will be different.”

Other voices. Lowry is one of an impressive number of young women who have entered the personal finance field via blogs, websites and social media. Another is Cindy Zuniga, 31, who graduated from law school in 2015 with $215,000 in (mostly student) debt and paid it all off in four years.

To repay the debt, Zuniga refinanced to a lower rate and shortened the term to cut interest costs. Then she “budgeted extremely carefully,” she says. “Every dollar I brought in had its job—rent, groceries, transportation—and anything extra went to paying off the loans.”

She chronicled her experience with a “zero-based budget” on In­stagram, and launched her business, Zero-Based Budget Coaching, in 2019. “As long as you have an intentional plan, you can achieve your goals regardless of income,” she says.

Like Lowry, Zuniga was influenced by her family history. Her parents, immigrants from Ecuador and Honduras, were “very much against consumer debt,” but in her low-income community in the Bronx, “money was a taboo topic,” she says. “Everyone talks about the lack of money, but nobody talks about money management. So it was important for me to tell my story.”

Family background was also a factor for Shang, who uses her platform, Save My Cents, to encourage her followers to take charge of their personal finances. Her parents, immigrants from China, emphasized the value of saving and frugality. At one point in her career, Shang, 35, was saving one-third of her income as a management consultant and aiming at saving 50%. Reaching that lofty goal is a matter of mind-set over money, she says. “Don’t worry about what other people think of you. When you fine-tune your spending and saving to bring them in line in with your values, you’re not dependent on your education or your income.”

Her extreme savings measures are in line with the FIRE philosophy—financial independence, retire early. She has no plans to retire early, but FIRE principles have given her other options, such as taking an unpaid maternity leave and helping to support her retired in-laws. She hopes eventually to establish a scholarship foundation. Her advice: “Have a neutral view of money. It’s not bad, nor is it everything. It’s just a tool.”