Down to Earth Finance

How Women Angels And Entrepreneurs Are Beating Investment Odds

Galia Gichon — Wed, 22 May 2013 18:27:12 +0000

Pipeline Fellowship alumna Kelly Hoey and Alumnae Council member Susan Duffy are profiled in this great article in Forbes:

How Women Angels And Entrepreneurs Are Beating Investment Odds

It’s worth a read!

Do Your Numbers Stack Up?

Galia Gichon — Sun, 21 Apr 2013 00:30:59 +0000

We all have numbers for mortgages, exercising, our age and net worth. Where do you stack up?

MORTGAGE

Is your mortgage more than 28% of your gross income? This includes mortgage and insurance. If so- consider reducing your mortgage by refinancing, moving or increasing your income.

START EXERCISING

Those who exercise at least 3 times a week earn 9% more than those who don’t according to Cleveland State University professor Vasolios Kosteas.

ARE YOU OVER AGE 50?

If so, take advantage of the catch up provision for IRA or 401k. In 2013, you can contribute an additional $5,500 for your 401k and an additional $1,000 for your IRA.

DO YOU WORK WITH A FINANCIAL PLANNER?

Your net worth could be nearly $200,000 HIGHER if you do. $307,750 is the median wealth of people who work with a planner versus $122,000 of those who don’t – according to a study by Annamaria Lusardi of George Washington University and Olivia Mitchell of Wharton.

These were read in Money magazine.

How Can Women Get More Retirement Money?

Galia Gichon — Tue, 09 Apr 2013 15:34:29 +0000

As most of you already know, the male-female pay gap has not changed. Women still get paid 77% of men’s salaries, according to the American Association of University Women. Whether you decide to “lean in” or lean out, the facts are that women are leaving the workplace to raise children AND care for their parents. The gap between women and mens pay only gets wider for women in their 40′s and older. The next step to think about is that many women will be single in retirement. Did you know that more than half of women ages 65 and older are single? That also grows significantly as women get older.

So, looking at our current situation, HOW Can Women Get More Retirement Money?

I read about this current report on Marketwatch and the suggestions to move forward in a POSITIVE way made a huge impact on me.

What can you do?

* If you are getting divorced, make sure you negotiate for a fair share of retirement savings. This. Includes IRAs, pensions, 401ks and social security.

* If you are making retirement plans, it is essential you plan for the woman to live longer and still maintain her lifestyle.

* Purchase life insurance so you can count on income for your later years.

* Take social security as late as possible, both spouses.

* Be specific about how much to save annually. For example: 45 year old woman currently earning $100,000 per year has already saved $100,000. If she wants to retire at age 70, she will need to save $1,500 per month. Have you done this retirement exercise?

Do We Have Retirement Crisis?

Galia Gichon — Fri, 29 Mar 2013 02:14:32 +0000

I recently read about a report in the Wall Street Journal that made me stop and think about how these numbers could “scare” us enough to make positive changes for our personal financial picture. Just the last few weeks I have met with many clients who had decent incomes but NOTHING saved for retirement. Do not let these numbers scare you but instead motivate you to do more or take an action step forward.

SAVINGS DOWN SINCE 2008
57% of US Workers have $25,000 or LESS saved. This is down higher from 49% in 2008, according to a recent Employee Benefit Research Institute study. Do we have a crisis? Not to scare you but when I see savings go down, I do get nervous. The savings number should be increased considering that the S&P 500 has provided an annualized 5.62% return for the last 5 years! Plus 66% of us are saving for retirement compared to 75% back in 2009.

LOWER CONFIDENCE
Plus 28% of Americans have NO confidence their retirement savings will be enough for them. This is the highest level in at least 23 years. Knowing your numbers and looking at them annually is a key factor to increasing your confidence. Don’t ignore it.

WE ARE LIVING LONGER
While this is wonderful news to spend this time with our family and loved ones, it is not such great news for our wallets. Women who reach 65 are expected to live an additional 22.7 years, up from 21.3.

WHAT CAN YOU DO?

1) Get a checkup every year. I work with so many people who are middle class and are able to save more money in this economic environment.

2) Put as much money as you can in tax-deferred accounts. The harder it is to touch, the harder it is to take out!

3) Fill out an online retirement calculator every year. My favorite one these days is Fidelity My Plan.

4) Re-run your retirement numbers with a longer life span so they are more realistic. Again, it may not be the best news but it paints the practical picture.

5) Prioritize your expenses. I worked with client today that came down to choosing trips versus eating out a few times a week. She couldn’t do both and save the way she wanted to. I didn’t tell her to give up on both but pick one so she could still save accordingly. What is your priority?

Should I Spread Out My Investing?

Galia Gichon — Tue, 12 Feb 2013 16:43:41 +0000

The past few years have created skittish investors. It’s completely understandable. I’ve heard many stories like this:

“I invested my SEP IRA at one time and the market dropped the next day.”

“I pulled out of the market too early.”

“I didn’t sell when I should have.”

Does this sound familiar? Even if you have not experienced this you might still worry about market timing. Can you time the market?

Well… We can’t. However, there are things you can do to protect yourself from losing too much and assessing your risk.

1) If you contribute to a ROTH IRA- don’t wait until April 14 to contribute the full $5,500. Instead setup automatic monthly investing of $458. Now you are dollar cost averaging.

2) Contributing to a SEP IRA? If so, it may be difficult to know the dollar amount for the year until you do your taxes. If you’ve been in business for a few years and are seeing less volatility, then invest a portion every month or quarter. For example, if you contributed $9,000 last year, perhaps invest $400 per month and then top it up at the end of the year. Then, you don’t run the risk of overfunding.

3) Inherited Money Or Got a Payout?

This can be especially scary when you haven’t had a great deal of savings. I’ve worked with many clients in this situation and they are very nervous about investing the money at ONE time. Understandable. Consider investing the money in thirds over a year. Even if you pick a high time, your next investment will be when the market is down.

How Can I Get Better Organized?

Galia Gichon — Fri, 25 Jan 2013 20:21:18 +0000

I was recently asked about organizing all those pesky little passwords that are essential to your online virtual finance world. Everything from mint to frequent flyer miles to banking to your IRAs. How do you keep track? Does an excel spreadsheet work? What if you don’t know how to use excel?

I asked my good friend and colleague, Erica Ecker, a professional organizer, her advice. As usual it was on the spot, super helpful, gets you organized right away and in easy virtual arm’s reach of your important data. You can also check out this handy new app from DIVA CFO for organizing your documents.

1) DON’T…

Use an excel document.

2) LOW-TECH SOLUTION

Buy a small address book like this one. Stash it away in the back of a desk drawer or box that is within arm’s reach of your computer. If you want to store your Chase Bank info, turn to the “C” section of address book and write “Chase” there and add all your important info – your password, your username and any other salient info.

3) HIGH-TECH SOLUTION

The site 1Password.com can help you

You can access it from a phone or computer. Confidential info is encrypted and all you need to remember is one password.

Erica recommends picking a phrase that you love and then using the first letter (i.e. “Four score and seven year ago” Would translate to FSASYA). And something like that could be the only ONE password you have to remember.

How to Save Money on Travel

Galia Gichon — Thu, 24 Jan 2013 20:39:59 +0000

For those of you that know me – I love to travel. I try and travel internationally once a year and love both ski and beach vacations. Being a personal finance expert, I clearly don’t want to spend top dollars and am always looking for a good deal but don’t have much time either. I recently read this article on the NY Times Bucks blog (I’m a huge fan) and found that I use many of these tips. Check them out and find what works for you to save money on your next vacation.

1. PICK UP THE PHONE

They suggest calling travel agencies. I recently booked a condo online for Monday to Monday. I called the management company and pointed out that they could still rent out the condo for the weekend and get me in. I got $75 off per night for my stay!

2. CHOOSE CHEAP COUNTRIESMy closest travel buddy claims her trip to Panama and Nicaragua was her best beach vacation. I never would have thought of those countries, but why not? This site lists 10 “Cheap Places to Travel on the U.S. Dollar”

3. SPLURGE WHEN IT MATTERS

One of my favorite exercises is RATHER. ”I would rather spend my money on ____ than ______. Same goes on vacation. I would rather spend my money on a special purchase (I.e. piece of local art) than fancy dinners.

4. PICK UP THE LOCAL PAPER

Local papers, sites and magazines such as TIME OUT always list wide selection of museums and shows for all budgets.

5. FACETIME IS YOUR FRIEND

When I went to Europe last year, I didn’t have a local cell phone and didn’t want to pay for one. I called my family with FACETIME using my hotels WIFI at no cost!

Video: Financial Fluency at Athena Center for Women’s Leadership

Galia Gichon — Wed, 16 Jan 2013 21:13:23 +0000

I’ve had the good fortune to teach at Barnard’s Athena Center for Women’s Leadership. Watch this great video they made, with some of my advice on financial fluency for young women. Hear my tips on knowing your numbers and talking about money with your friends. And if you’re in NYC, definitely check out the Athena Cente r and their many great programs!

Watch now: Financial Fluency at Barnard’s Athena Center for Women’s Leadership