Over the last couple of years, I have noticed an
increased trend of single women who have never partnered and are nearing
retirement, or who have no prospect of partnering and are in late accumulation
phase. This may not have been a conscious decision on the ladies part, but
rather a consequence of the changing times. With women more active in the
workforce, and career satisfaction at stake, the goal of marriage and children
seems to have taken a back seat to the long hours, and further education that
many women now prioritise.
The single ladies who come to see me have two
overriding goals, long term financial security, and maintenance of lifestyle.
Remembering that these ladies are in perpetual SINK (Single Income, No Kids) phase,
the problem that they face is how to have your cake and eat it too?
The first thing to determine is what is financial
security to each individual client? Financial security for myself is to have a
buffer in the bank, no lifestyle debt, a paid down mortgage, a healthy
superannuation, and an investment account on the side. For another individual,
it may be being able to pay the rent, the bills, and maintain cash flow.
Identifying what financial security means helps establish goals for the client
to strive for, while framing each individual goal in the context of the big
picture.
Once each stepping stone goal is established
towards financial security, it is important that there be a reward. This could
be as simple as a dinner out with friends, or as encouraging as a card in the
mail. Singles don't have a partner to celebrate the small milestones, so it is
important to provide positive reinforcement, as well as that pat on the back.
In my experience, financial security cannot be seen
to come at the cost of lifestyle, with this client demographic. It may be a
challenge for planners as they need to be able to articulate how the goals
work with lifestyle needs, and that they don't take away from
the client's lifestyle wants. Going over needs vs. wants, and getting the
client to own the process of prioritisation is key to the success of the
strategy.
So, next time a single lady comes through the door,
remember that they are not just looking for a strategy, they are looking for a
sounding board and a lifestyle plan. Taking on a client in this cohort will
mean that you may need to reassure them that they are making the right
decisions, however, the advantage is that you won't need to help them negotiate
with another person like you do with the marrieds.
Find Erin* at Achieveit Financial Planning, or call
for an appointment on 07 4638 5011.
*Authorised Representative of Securitor Financial
Group Ltd ABN 48 009 189 495 AFSL 240687
This is general information only and does not
consider your personal circumstances. You should not act on any recommendation
without obtaining professional advice specific to your circumstances. We
recommend you speak to a financial adviser before acting on any of the
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