Indian women no longer play the role of managing only their household. Today they are successful entrepreneurs and lead multi-national firms. Even though a booming career and a consistent flow of income are of utmost importance for females, majority of them are unable to handle their investments effectively. A large number of women delay retirement planning and think about it when they become 40. This Women’s Day, we list some key investment tips which financial advisors can implement to help women manage their finances better:
CREATE AN INVESTMENT PLAN
The first step is to deve a comprehensive investment strategy after speaking to your lady clients in depth about their goals, risk appetite, income etc. Accordingly, advisors can suggest suitable investment options. You must also tell them to have an emergency fund so that they are prepared for any type of financial crisis.
ENCOURAGE THEM TO OPT FOR LIFE AND HEALTH INSURANCE
Insurance is not only vital for men. It is equally critical for women to have sufficient health insurance so that if they are hospitalized, all their expenses are taken care of. As health hazards tend to increase as a person gets older, financial experts must suggest women clients to choose a suitable plan as early as possible.
Similarly, life insurance must be taken by women when they are young. It is the best way for women to ensure financial security for their dependants when they are not alive.
RECOMMEND SYSTEMATIC INVESTMENT PLANS
Women have monetary aspirations too such as buying their own house, car or saving for their child’s education, marriage etc. An SIP is among the ideal investment options to attain their goals. Advisors should explain to their women clients how a small amount invested in SIPs multiplies into a large corpus in some years. Moreover, it instils financial discipline and helps women keep a watch on their spending habits.