I’m a recent window. My husband managed all of our investments for more than fifty years - while I raised our children. I am afraid to manage these investments because I have no experience in financial planning. I can’t afford to lose this money. But I also don't want to have to depend upon a stranger for my financial well-being. What should I do?
Many women are in your situation because many women have, historically, married men five to ten years older than themselves. Also, women outlive men by six years on the average. This means that many women are widows for fifteen to twenty years. Many women who are currently in their sixties or seventies never worked outside of their homes. They raised their children while their husbands earned a living and managed the family’s investments. They had no preparation, knowledge or experience of financial matters because their husbands took care of everything. Unfortunately, they have no choice now that they are widows. They must assume responsibility because no one else will. You must recognize that no one is more concerned about your money than you are.
You can start to become knowledgeable by attending seminars, reading some basic books on investment, or enrolling in a local adult education course. And don't be afraid to ask questions. If you have a relationship with a broker or financial consultant, insist that this person explains everything that you feel you should know about. If you are uncomfortable with anything about an investment, make sure it's clarified to your satisfaction. If you have a broker who wants to take over and asks you to sign a discretionary account, be aware that you are giving that person limited control over your finances.
By having some basic knowledge about investing, you will be able to ask the right questions. You’ll feel confident that you are making good decisions about your own well-being, and are not dependent upon others for your financial health.
Let me stress once more the importance of not being afraid to ask a question about your portfolio because you feel “it’s a dumb question.” The only dumb question is the one you were too embarrassed to ask. Remember, it is your money, so go ahead and ask that question!
Many women are in your situation because many women have, historically, married men five to ten years older than themselves. Also, women outlive men by six years on the average. This means that many women are widows for fifteen to twenty years. Many women who are currently in their sixties or seventies never worked outside of their homes. They raised their children while their husbands earned a living and managed the family’s investments. They had no preparation, knowledge or experience of financial matters because their husbands took care of everything. Unfortunately, they have no choice now that they are widows. They must assume responsibility because no one else will. You must recognize that no one is more concerned about your money than you are.
You can start to become knowledgeable by attending seminars, reading some basic books on investment, or enrolling in a local adult education course. And don't be afraid to ask questions. If you have a relationship with a broker or financial consultant, insist that this person explains everything that you feel you should know about. If you are uncomfortable with anything about an investment, make sure it's clarified to your satisfaction. If you have a broker who wants to take over and asks you to sign a discretionary account, be aware that you are giving that person limited control over your finances.
By having some basic knowledge about investing, you will be able to ask the right questions. You’ll feel confident that you are making good decisions about your own well-being, and are not dependent upon others for your financial health.
Let me stress once more the importance of not being afraid to ask a question about your portfolio because you feel “it’s a dumb question.” The only dumb question is the one you were too embarrassed to ask. Remember, it is your money, so go ahead and ask that question!
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