Author- Sandra Cleveland
Since I spend most of my day helping people prepare for success in their finances, you would probably expect me to say that financial resources are most critical to a successful retirement. It’s true that finances are inarguably important but financial accomplishments alone don’t ensure a successful retirement.
In general, women bear greater financial risk than men. Most married women bear more risk than their husbands because they tend to be younger and have a longer life expectancy. And since women tend to earn less money than men, there is greater pressure to make fewer assets cover higher costs, particularly for single women.
How can we decide how much money to give away to our adult child(ren) if we don’t know how much we as parents are going to need? The 2013 Pew Report found 50% of middle-aged parents said they are their adult child's primary means of support. In the same report, more than 30% of the parents said they provided support for adult children for reasons other than education.
Professional investors know something that most people find impossible to believe: that the threat of scary ups and downs in the markets is by far the best friend of the long-term investor. Why? Because over the long term, stocks have provided returns far higher than bonds or cash.