Three Financial Tips for Women’s History Month
Women still face unique economic and social challenges today, so here are some key things to consider that can lead to a more secure financial future.


Every March, we celebrate Women’s History Month, reflecting on the transformational accomplishments of women over the years. Women are gaining more representation in leadership roles, outpacing our male counterparts in earned degrees and starting businesses at twice the rate of men.
We have come a long way, but continue to face huge challenges. The gender pay gap, rising costs of child and elder care and weak support in terms of family leave policies are just to name a few.
Recognizing these areas that need improvement — while at the same time focusing on ways we can better our own individual situations — is how we can pave the way for generations after us.
In recognition of Women’s History Month, I’m offering some financial tips for women to think about as we face unique economic and social challenges throughout our lives. Hopefully, these considerations will help you be a little more prepared for the future.

1. Prepare for Potential Time Out of the Work Environment.
Whether it’s taking time off to finish school, to bear and care for children or take care of a sick parent, many women often find themselves following a different path than their male counterparts. The pandemic brought that divergence front and center, with women between the ages of 25 and 44 almost three times as likely as men of the same age group to be out of the workforce due to childcare demands.
These career breaks can have a huge long-term impact on finances. It’s estimated that a one-year break for a 35-year-old woman earning $100,000 per year would cost her $212,936 in retirement contributions and salary by the time she reaches age 67.
Sometimes these career breaks can’t be timed, but if you do see one in your future, start planning for it now. Start saving aggressively to help cover basic living expenditures during that period. You don’t want to be tapping into retirement savings or maxing out credit cards to get by.
If there is room in your budget, consider saving some of your current income in an investment account to take advantage of the power of compounding while you are not working. It’s also good to build up your professional network: You can turn to them once you are ready to jump back into a job search after your break.

2. Change Your Mindset From a Savings to an Investing Outlook.
Research has shown that women are more likely to save than invest their money. The big distinction between the two is that the latter has the ability to compound and grow your wealth over the long term. If women invested at the same rate as men, there would be an extra $3.2 trillion of assets in their pockets today. The investing gap coupled with pay disparities has come with a severe cost: Women retire with only two-thirds as much money as men in their 401(k)s, even though women live, on average, six years longer than men.
With that in mind, it is important to maximize retirement contributions when possible. If your workplace offers a 401(k) account, take advantage. If they offer a company match, then try to save at least what they are willing to match and target an overall savings of 15% to 20% of your gross paycheck. Keeping a diversified portfolio and investing for the long term will not only help manage risks, it also means that if the market takes a dip, you still have plenty of time to recover.

3. Enlist Help From Professionals.
As women, we wear so many different hats and take on so many responsibilities. It’s almost second nature for us to multitask, because we’re always faced with so many demands. There are areas, though, where reaching out for help is critical — especially when professional advice is warranted. Some professionals who could be helpful to hire: a CPA, estate planning attorney, insurance broker or agent and financial adviser.
When it comes to a financial adviser, it is crucial to work with one who acts as a fiduciary. A fiduciary is ethically and legally required to act in their client’s best interests. This is an important distinction to make. Not all financial advisers are held to that standard, and some must only uphold what is referred to as a suitability standard — they are only required to make recommendations that are suitable given the client’s situation, age, goals and other factors.
Experience, education and, of course, rapport are other factors important to selecting all these professionals. To learn more about important factors to consider when choosing an adviser to work with, see the article “How to Find a Financial Adviser.”
Taking Control of Our Futures
Today, women control a third of the total U.S. household investable assets — approximately $12 trillion. Over the course of the next decade, as Baby Boomers pass away, this share will get even larger. By 2030, women are expected to control much of the $30 trillion that will be bequeathed from Boomers. With that in mind, being able to make important investment decisions is becoming of greater importance in our lives.
Taking control of your finances is one of the many ways we as women can strengthen our futures — not only for our own lives, but for all of the women and daughters who follow us.
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Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser located in Long Beach, California. Registration does not imply a certain level of skill or training. Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com. This blog is provided for informational purposes only and should not be construed as personalized investment advice. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. The information provided does not constitute any legal, tax or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant.
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.
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Julia Pham joined Halbert Hargrove as a Wealth Adviser in 2015. Her role includes encouraging HH clients to explore and fine-tune their aspirations — and working with them to create a road map to attain the goals that matter to them. Julia has worked in financial services since 2007. Julia earned a Bachelor of Arts degree cum laude in Economics and Sociology, and an MBA, both from the University of California at Irvine.
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