Build an Emergency Fund of at Least 6 Months of Expenses
According to Fidelity, less than a third of women have at least 6 months of emergency savings built up. With 79%2 of women making it a priority to build an emergency fund, it is crucial that we begin to take action against our own financial crisis. We’ve seen over the last couple of years that life will throw us curve balls. Whether that’s the trailing effects of the pandemic, an unexpected medical expense, or the rising cost of everyday essentials, having some extra cushion in our bank accounts helps relieve some financial stress.
Need help getting started? Look at your day to day expenses. What can you cut out? Going out to eat for lunch, those daily coffee breaks, that unused subscription? Even saving a few dollars each week or month can help kickstart your emergency fund and give you some peace of mind.
Save Between 12-15% of Your Income a Year to Prepare for Retirement
The average American woman lives 5 years longer than the average American man; therefore, women typically need more retirement savings to last through their full life expectancy.
Not sure where to start? Begin by contributing enough to receive your employer’s matching contributions. Consider gradually raising your contribution amount to 12% or higher. Raise your plan contributions once a year by an amount that’s easy to handle, on a date that’s easy to remember – say, 1% on your birthday. Thanks to the power of compounding (the earnings on your earnings), even small, regular increases in your plan contributions can make a big difference over time.
Have a Financial Plan
Whether it’s buying your first home, planning and saving for a big life event, or planning for retirement, having a financial plan in place can help make those goals a reality!
For more information, Contact your MCF Financial Advisor, today!
1Fidelity Investments Total Well-Being Research online survey of 5,062 active Fidelity 401(k) and 403(b) women participants from across the United States. The survey was conducted by Greenwald and Associates, an independent third-party research firm, on behalf of Fidelity in September 2017. Certain demographic and behavioral data such as income, savings rates, and guidance interactions are from Fidelity Investments’ recordkeeping system as of December 31, 2018.
2Fidelity Investments 2021 Financial Resolutions Study, November 2020
IMPORTANT DISCLOSURE INFORMATION
MCF Advisors, LLC (“MCF”) is an SEC-registered investment adviser. For informational purposes only. Not a recommendation of any particular security or strategy. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by MCF), or any non-investment related content, made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from MCF. To the extent that a reader has any questions regarding the applicability of any specific issue discussed herein to his/her/its individual situation, he/she/it is encouraged to consult with the professional advisor of his/her/its choosing. MCF is neither a law firm nor a certified public accounting firm and no portion of the presentation content should be construed as legal or accounting advice. A copy of MCF’s current written disclosure statement discussing our advisory services and fees is available upon request. If you are an MCF client, please remember to contact MCF in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing / evaluating / revising our previous recommendations and/or services. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement.