Broker Check

Webinar Transcript: “Women and Wealth: Challenges and Strategies for Female Clients"

March 14, 2024

Topic: “Women and Wealth: Challenges and Strategies for Female Clients" (3/14/2024 @ 8:30am) 

Host/Presenter: Jonathan I. Shenkman, President & Chief Investment Officer, ParkBridge Wealth Management (Jonathan@ParkBridgeWealth.com)

 

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Jonathan Shenkman: Good morning, Happy Pie Day, Happy Women's History Month, and Welcome to the Park Bridge Wealth Management, Winter Webinar Series. This program is entitled, women and wealth challenges and strategies for female clients, for those who don't know me. My name is Jonathan Shankman. I'm the president and Chief investment officer of Park bridge, wealth management.

 

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Jonathan Shenkman: In that role I serve in a fiduciary capacity to help my clients achieve their financial objectives. My practice focus on working with high net with families, businesses, and not for profits. I manage individual investment portfolios, trust accounts, corporate retirement plans, and endowments. Tell my clients achieve their financial goals. In addition to the 20 or so events I run every year. I also do a fair amount of writing on the topics of investing and financial planning.

 

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Jonathan Shenkman: You could read my work in a variety of periodicals, including Barry's Cnbc. Forbes, Kiplinger, the Wall Street Journal, the Cpa. Journal and Trust in Estates Magazine to name just a few. You could see all my work on my website at Parkbridge. wealth.com forward slash articles, or by following me on social media at Jonathan almuni. Additionally, you could check out my weekly, podcast. Which is also called Jonathan on money, and you could listen to that on apple spotify, or wherever you get your podcast

 

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Jonathan Shenkman: okay with those introductory remarks out of the way, let's turn to women and wealth.

 

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Jonathan Shenkman: So some attendees may be wondering. Why, I'm giving this webinar. In the first place, after all, I'm not a woman, and as the 4 women in my household will be very quick to point out, I am far from an expert in anything related to women.

 

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Jonathan Shenkman: That being said, it's interesting to note that approximately 70 of my clients are, in fact, successful women. I'm not sure why my business has evolved in such a way. Perhaps my style of managing money and my overall philosophy something that women identify with. I think it may also be because I admit I have a lot to learn about women, their goals and concerns. Consequently I continuously refine my process to better serve this demographic.

 

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Jonathan Shenkman: So before we jump into the meat of the presentation, let's first discuss some background information. It's important to recognize that the growth of women in the workforce has increased significantly over the past few decades. Women are more successful and financially independent than any time in history. The growth of this demographic presents an opportunity for practitioners to address a unique set of circumstances that may not be prevalent with their male clients.

 

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Jonathan Shenkman: Here's some numbers to consider. First, the percentage of women in the workforce has increased significantly over the past few decades. Women accounted for only 32.7% of US. Labor force in 1,948, but by 2022, the percentage grew to 56.8. Women have especially made notable gains in professional and managerial occupations. And that is an example. In 2023, 39% of all lawyers are women compared to less than one in 10, in 1,974

 

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Jonathan Shenkman: women own close to 10 million businesses in the United States, which accounts for 1.4 trillion in receipts and in 2,019 women surpassed men. As the majority of college educated workers in the United States. Yet, as is frequently reported, women continue to earn less than men with women still earning only 83% of their male counterparts salary.

 

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Jonathan Shenkman: some reoccurring themes that are gonna arise when working with women, include one longevity risk in 2,016. The life expectancy for us females was 81 years as opposed to 76.1. For us males. Not only are women living longer than their male counterparts, but also their life expectancy. Deltas could actually growing. In fact.

 

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Jonathan Shenkman: 74% of women die single, which makes it imperative for females to stay in control of their own finances. 2 is different earnings. As I already mentioned, studies have shown that women earn 83 cents for every dollar by men, and that's a $900,000 disparity or more over a lifetime. For some individuals.

 

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Jonathan Shenkman: 3 financial transitions, approximately 2 thirds of women between the ages of 40 and 79 have experienced a major financial transition in their lives, including divorce, widowhood, or becoming the primary caregiver for a parent or spouse. We may also experience transitions at the beginning of their careers if they leave the workforce for childbirth order raised children

 

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Jonathan Shenkman: for is investor psychology. There's a difference in temperament and overall psychology for women compared to men when it comes to investing. There have been various studies in both finance and other fields, illustrating how women are more risk averse than men. This has a direct impact on the way women manage their finances. There are also other very positive psychological benefits that women have over men. Now, I'm going to discuss that in a few minutes

 

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Jonathan Shenkman: and 5 delegation of financial decisions, despite continued financial success and independence. 56% of married women still delegate money related decisions to their husbands. We're gonna see these 5 themes come up again and again and again throughout this program, and I plan to address how to plan and strategize around them.

 

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Jonathan Shenkman: So let's explore the impact of these themes on financial planning for female clients by first discussing how to manage, how to marriage and divorce planning has evolved over time. So, according to the Us. Census bureau in the past 50 years. The average age of women marrying for the first time increased

 

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Jonathan Shenkman: from 20.8 to 27.8 years old. Primary factors for this trend include growth of educational and employment opportunities for women. Consequently women are entering into marriage with more assets and greater earnings potential than ever before. On the flip side divorce has become a bigger reality for millions of women.

 

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Jonathan Shenkman: Given the changing matrimonial landscape, it's important for financial advisors, Cpas and attorneys to advise their female clients to consider the impact of evolving gender roles have on marriage and divorce. The first point consider our prenuptial agreement. Prenuptial agreements or a prenupt

 

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Jonathan Shenkman: a prenup is an is an attractive option for women seeking to protect their premarital assets and future career, or business prospects. Prospects in a prenup couple can agree on terms that would complement their anticipated family structure.

 

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Jonathan Shenkman: For example, both spouses may be working during their marriage and possess similar financial means. As a result, they may prefer to enter into a prenup that provides that their earnings would remain separate in the unfortunate event of divorce.

 

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Jonathan Shenkman: Alternatively, a couple may opt for an arrangement in which one spouse works outside of the home and the other spouse primarily raises the children, so the couple may prefer to split the assets accumulated during the marriage and provide for spa spousal support in the event of divorce. Many folks on this call may be thinking that starting with a discussion on divorce may be a bit of a downer. However, the foundation of any successful marriage is going in with eyes wide open.

 

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Jonathan Shenkman: a healthy and

 

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Jonathan Shenkman: open relationship with money between 2 partners means understanding and respecting each other's financial situation by drafting a prenup it may save a lot of headache, heartache, and stress down the road. Furthermore, with one of the largest intergenerational trans

 

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Jonathan Shenkman: transfers of wealth taking place, the role of women in managing and safeguarding family assets shouldn't be overlooked. Protecting gifts, inheritances, and family businesses are significant benefits that women may get from taking the time to draft a proper prenup after a prenup. The next important point. It considers divorce over time. Divorce laws, gender, neutral

 

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Jonathan Shenkman: women are no longer given priority regarding custody. Rather, there's a presumption of joint custody in many States. Property division is determined, based on State laws instead of by title, or who earn the money. Spousal support. Rules vary by State, but may be pay, but may be payable to to or from either party, regardless of gender.

 

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Jonathan Shenkman: Most States have statutory formula for calculating the presumptive amount of spousal support, as well as enumerating factors on which a port may deviate upwards or downwards. In today's day and age a woman may earn more than their ma than their spouse during the marriage and have to pay spousal or child support on divorce.

 

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Jonathan Shenkman: In addition, there are usually guidelines governing the duration of spousal support. There's a trend away from permanent spousal support, awards to durational awards. The rationale is to enable a spouse to become self, supporting within the established timeframe. However, in practice this may produce harsh results. For a spouse who's been out of the workforce for a long time or never worked

 

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Jonathan Shenkman: in marriages adhering to more traditional gender roles. Homemakers may be unable to maintain the marital lifestyle post divorce under laws that place an increasing emphasis on self support. The truth is, there's little financial planning that could be done to protect this type of client who may need to be self supporting. After spending many years as a homemaker, however, what I often tell my young female clients, in order to ensure a financially secure future, regardless of circumstances.

 

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Jonathan Shenkman: is to invest in yourself. It's of utmost importance to spend the time and money to invest in themselves and their marketability throughout their career.

 

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Jonathan Shenkman: This may mean taking a certificate course, working part time, or as a consultant, if full time is not possible. Writing an industry, respected periodicals and staying up to date within trends in their line of work. There is no more powerful tool when it comes to money than the ability to earn a livable wage.

 

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Jonathan Shenkman: No one could take this away from you, even an unfavorable divorce agreement. Sadly I could share many unfortunate stories of women who relied on their husband for financial support, but got divorced and didn't know how they're going to be able to maintain their lifestyle. This should serve as a cautionary reminder to young women to invest in themselves professionally.

 

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Jonathan Shenkman: Next, let's discuss what is popularly referred to as gray divorce. The term great divorce is coined to describe individuals, 50 and older, who are getting divorced at any age. Divorce can have devastating financial consequences. However, it could be especially difficult when it happens later in life.

 

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Jonathan Shenkman: Special considerations exist for women getting grade divorces. Many women in this age group have been out of the workforce for a long time, or earn less than their spouses. As a result they may be dependent on their ex spouse for financial sport, or maintaining and paying for health insurance coverage. After a divorce. Additionally, if married for over 10 years, they may qualify to collect social security based

 

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Jonathan Shenkman: on their former spouse's employment record. The divorce settlement may constitute the primary, so sole source of funds for retirement. So what's crucial for these funds to be properly managed? The bottom line here is that it's important for practitioners to collaborate with their female clients on all aspects of planning early in their careers.

 

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Jonathan Shenkman: and, as I mentioned, encouraging women to take control of these decisions can lead to a much smoother transition should a marriage disintegrate.

 

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And here's just one more quick planning tip to consider. It's worth noting that it is common for female for a female spouse to leave their current financial advisor after a divorce.

 

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Jonathan Shenkman: This may be due to the fact that their husband had the main relationship with the family financial advisor or their advisor was not understanding or appreciating their concerns. Personally, I have a number of female clients who move their assets to me after a divorce as a practitioner, as a planning tip for advisors, you should let this new client do most of the talking when you first meet. It's important to be mindful that divorce is a very traumatic experience.

 

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Jonathan Shenkman: Advisors should start by letting the client share information about their situation which will lead to discussing their concerns, goals, and ultimately their dreams. Establishing this trust by serving as a sounding board instead of going straight into sales. Mode is so important in helping the client move on financially after a divorce.

 

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Jonathan Shenkman: Now let's discuss investor psychology. The field of behavioral finance analyzes the limits of our self control and how we're influenced by our biases. This is especially true when it comes to the psychological differences between how men and women approach investing. The first difference when it comes to investor psychology is risk aversion.

 

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Jonathan Shenkman: Many studies have shown that women are more risk, averse than men. In fact, according to a Blackrock study, only 38% of women are willing to increase their investment risk to achieve higher returns compared to 56% of men

 

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Jonathan Shenkman: investing conservatively can be a prudent way to preserve capital of investor as short term goals.

 

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Jonathan Shenkman: However, when planning for long term, such as retirement, or leaving a legacy, being too conservative is not only imprudent, but can also prevent clients from achieving their objectives anecdotally. I see this difference a lot today with money market yields luring investors at approximately 5 investors, particularly women who tend to be more conservative, may be inclined to sit in a money market account or Cds until they feel more comfortable getting back into the market.

 

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Jonathan Shenkman: If you are a long-term investor, this is a catastrophic mistake.

 

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Jonathan Shenkman: Stocks will outperform cash over the long term, and will also outpace inflation bonds and money. Market funds will not. If you don't, need your money for decades and sitting in cash, whose yields will drop is a great way to lower the probability of achieving your long term goals. Furthermore, if you are waiting to get back into the market, you'll be waiting forever. There is never an optimal time to do this. Don't let a false sense of security keep you from making prudent and sensible investment decisions.

 

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Jonathan Shenkman: The next point is around biases, while the term bias has a negative connotation. The reality is that certain predispositions

 

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Jonathan Shenkman: can be beneficial, and the paper boys will be boys. Gender overconfidence, and a common stock investment. By Brad Barbara and Terence O'dane, published in the Quarterly Journal of Economics. The authors found that investment accounts owned by women outperform those of men. Overconfidence caused men to trade 45% more frequently than women.

 

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Jonathan Shenkman: The combination of trading costs, taxes, and the quest to outperform contributed to reducing men's returns by 2.6 5% annually as opposed to 1.7 2% for women.

 

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Jonathan Shenkman: And here's a financial planning tip. To consider men's tendency to move things around doesn't only apply to trading. It also applies to staying the course with other investment strategies. The best approach to investing is a disciplined process that the client will stick with over the long term. Women's discomfort with risk, but tendency to trade less frequently is in stark contrast to men, and requires a different approach.

 

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Jonathan Shenkman: Consequently financial advisors should spend more time with women discussing risk and its ramifications while they could spend less time emphasizing the importance of staying the course and trading less. These small differences can lead to big benefits over a multi decade time horizon. In my practice. I've had more difficult time getting women to start investing than I do men.

 

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Jonathan Shenkman: However, once a female client buys into my philosophy and my process, I spend very little time encouraging them to stick with our process and their portfolio. It is much easier for them to ignore the noise, however, with some male clients that I work with. This is an ongoing struggle. I constantly need to remind them to stick with our predetermined process and dissuade them from taking the absurd advice from friends or their brother-in-law.

 

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Jonathan Shenkman: I rarely have these issues with female clients which make them far easier to work with, and what it's what helps them build wealth more consistently over time.

 

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Jonathan Shenkman: Now let's discuss retirement planning the challenges women face when planning for retirement contribute to the fact that women 65 and older, are twice as likely to live in poverty than men of the same age. Understanding these obstacles, and planning accordingly, is the best way to overcome them.

 

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Jonathan Shenkman: First, let's discuss sequence of returns, risk. The order of annual investment returns or annual withdrawals is a major concern for retirees who are living off income from their investments.

 

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This risk is magnified for women who need their assets to last for longer. Life spans. If a female client experiences a 3 decade long retirement, but has a string of lower than expected returns or takes larger withdrawals

 

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Jonathan Shenkman: early in retirement. The timing may have significant financial ramifications in the decades to come. Some of the strategies I use with all my clients, but particularly female ones, to mitigate this risk are one. Encourage them to work longer. Obviously, the longer one works the longer they could postpone withdrawing from their nest egg. If a bad string returns, presents itself in your retirement, and you're still working. This mitigates this risk.

 

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Jonathan Shenkman: 2 is working part-time.

 

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Jonathan Shenkman: It may not be necessary for full-time employment to mitigate against a string of bandmarket returns simply a few hours of work a week may do the trick, and 3 is establishing a content. This is when investors maintain a 2 to 3 year cushion of expense money in very short duration bonds or in cash.

 

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Jonathan Shenkman: If the market tanks, investors can withdraw funds from here, instead of liquidating their portfolio in a down market, next retirement topic is social security credits. Women represent over 50% of social security beneficiaries in their sixties and 70 70 in their nineties overall. They may make up, they they may make up 96% social security survivor beneficiaries.

 

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Jonathan Shenkman: However, time away from work. Given the fact that women tend to leave the workforce more than men can cause them to earn fewer credits towards social security benefits. In fact, in 2015 the average annual social security retirement benefit for women was $14,000, 14,000 $84 versus $18,000 for men.

 

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Jonathan Shenkman: This may require more intentional planning with social security, such as delaying when you claim benefits. Perhaps, considering a speo, which is a single premium median annuity may be a practical solution for a small portion of the retirement assets, and not the biggest annuity enthusiast, but the Spea has been a worthwhile solution in certain scenarios related to the previous point about fewer social security credits. Let's discuss retirement assets.

 

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Jonathan Shenkman: Studies have shown that women have nearly 50% less retirement savings than men. One cause is that women miss out on contributing to Company 4 one K plans and matching opportunities while they're out of the workforce. Another reason for disparity may be attributed to the gender wage gap, which is the difference between the medium annual salary pay for women and men who work full time year round

 

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Jonathan Shenkman: their wage differential as the result of occupational segregation bike, get bias against working mothers and direct pay, discrimination and some high paying jobs. Women collectively are receiving billions less than their male counterparts. For example, women physicians are paid 19 billion dollars less annually than men in the same occupation. There's no doubt that receiving 25 to 30% less pay in some professions can impact cash, flow, and in turn retirement savings.

 

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Jonathan Shenkman: Financial advisors are tasked with crafting, a plan to tackle these challenges for both the accumulation and decumulation. Phases of retirement planning some approaches may be related to lifestyle investments or cash flow strategies. These include delaying retirement or working part-time while in retirement, planning for worst case rates of return scenario which I just discussed, diversifying away from volatile investments at certain stages of retirement, or continuing to save, while already in retirement.

 

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Jonathan Shenkman: Exploring these options in a proactive way is imperative for many women to secure their financial future. Another option is for women to be more aggressive with their investments and maintain a higher than average savings rate early in their career. This way, if they experience wage discrimination or need to take extended leave of absence from the workforce to take care and raise their family. The high savings rate an aggressive portfolio may may make up for this shortfall in assets.

 

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Jonathan Shenkman: Now let's discuss insurance planning according to a 2023. Study by life insurance, marketing, research, association, or limbra. Women don't hold life insurance policies as often as men do. In other words, as women achieve more in their careers and their financial lives, they're further behind in protecting their income families and legacies through insurance, as women increasingly become a breadwinner, or even the main breadwinner in their household, having appropriate insurance coverage, is imperative

 

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Jonathan Shenkman: just to paint a picture of the gender insurance gap during the tumult of 2020 over 18 million women lost their life insurance coverage. Many women attributed their loss to sudden unemployment, yet even as women recover from those tough times they remain less likely to own life insurance. 58% of men hold a policy, but only 47% of women women do. Women are also behind in the learning curve about insurance, where 39% of men say they are very knowledgeable about life insurance, whereas only 22% of women say the same.

 

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Jonathan Shenkman: So for the advisors listening today proactively bringing up insurance and offering a tutorial on the type of insurance coverage, how it all works and why it's important to your female clients is a necessary part of the planning process.

 

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Jonathan Shenkman: Let's now discuss some insurance scenarios that may be helpful to bring up when meeting with female clients. First is the importance of income protection for women earning a paycheck outside the home. They should consider disability, income insurance a disability insurance policy will provide their family with a portion of their income in the event they can no longer work even temporarily, due to an accident or illness. If you're young or live a careful life. Perhaps this kind of protection seems unnecessary.

 

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Jonathan Shenkman: However, keep in mind that approximately 25% of workers in their twenties today will face disability at some point in their career, and, according to a recent study, nearly one in 3 single women said that they were extremely unprepared for any period of disability if they lost their income. Furthermore, the importance of disability insurance is compounded when one has young kids and needs to pay for health or additional support. If Mom is no longer able to earn a paycheck.

 

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Jonathan Shenkman: Next is spousal coverage. Not every woman earns an income outside the home women who stay at home to take care of things and manage the household are also major contributors. In fact, according to a calculation done by salary.com.

 

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Jonathan Shenkman: They found that if a stay-at-home mom were paid a salary based on all the work they do, they would earn approximately $178,000 a year. so I'm not exactly sure how they arrived at this number, but the point is still valid. If a woman who's a homemaker taking care of the family had to stop, due to unforeseen health circumstances, everyone in the family would be impacted, and the proper support would need to be hired or paid for

 

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Jonathan Shenkman: in order to protect your family from this kind of emergency review the option of spousal coverage.

 

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Jonathan Shenkman: there's also the always important topic of traditional life insurance as women advance in the workforce, they're more likely to have people who depend upon them financially.

 

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Jonathan Shenkman: With this in mind, a life insurance policy can help provide a financial protection for others. In the event of your premature death, you can change the beneficiaries your policy at any time. If you have young children, perhaps a trust should be the beneficiary of such a policy, and the most common and affordable type of life insurance is called term life Insurance, where one is covered for a set period of time like 10 years or 30 years, unless you have clients with extremely large illiquid estates. Term insurance should be adequate

 

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Jonathan Shenkman: at the very least. It's a good starting point to ensure that your clients have some element of coverage to protect their families. The point here is that even as women reach milestones in the workplace, they still experience discrepancies, especially when it comes to protecting their success. In particular, their assets and income. It's important to develop the appropriate insurance strategy for your female clients to ensure that they get the coverage that they need.

 

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Jonathan Shenkman: Now, let's we're gonna discuss a related topic, and one that tends to impact many more women than men, which is long-term care planning. So rising long term care costs is an issue facing all Americans, since it on average, women live longer than men, and are the primary caregivers of their spouse them to face increased burden? It's critical for women to plan for the likelihood of nursing home or long-term care. Home care will be needed to ensure. They'll have sufficient resources to pay for their long-term care needs.

 

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Jonathan Shenkman: Women should explore the following options. The first is self-funding. Paying out a pocket for a long-term care. Cost is a realistic option for a high net worth families.

 

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Jonathan Shenkman: and an inevitability for folks who don't appropriately plan, however, monthly nursing home costs can be prohibitively expensive, ranging somewhere between 7,500 to $20,000 a month depending on one's location.

 

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Jonathan Shenkman: The cost can cause many Americans to wipe out an entire lifetime of savings in the event of a significant long-term care, need so private pay or paying and a pocket may not be optimal. For many another option is long-term care, insurance, traditional long-term care, insurance, or hybrid policy is an excellent option for any individuals. It's especially useful for female clients whose cost of care is likely to be more expensive, due to living longer, and lack of care provided by Spouse, who may already be deceased

 

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Jonathan Shenkman: if insurance is purchased, while an individual is relatively young and healthy, can significantly help defray the cost of care when needed. The downside is that many policies purchased today are very expensive relative to how they were priced in the past. Moreover, because of medical underwriting requirements. Many people may not be elig eligible, due to past or current health situations. Clients may also have a policy whose daily benefits is far eclipsed by the actual cost of care. One of the more recent and popular long-term care insurance products on the market today is life insurance policy with a long-term care rider.

 

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Jonathan Shenkman: The way it works is if you go through traditional life insurance underwriting. If the policy holder needs long term care coverage, they have it. If they're healthy and die without needing any long-term care, then their beneficiaries will get the death benefit. What many people like about these policies is, if you don't use it. Your beneficiaries will still get something. Additionally, the likelihood of premiums being raised like they are with traditional long-term care. Insurance is less likely

 

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Jonathan Shenkman: in full disclosure. I personally have a policy like this myself. Next consideration is Medicaid planning for those who aren't candidates for the previously mentioned options. Medicaid can actually be a savior to qualify the individual must meet asset and income requirements which vary state by State. For example, New York's, which is perhaps the most generous of States. An individual applying for Medicaid can have no more than $30,082 in non-exempt assets.

 

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Jonathan Shenkman: In other States. That asset threshold may be as low as around $2,000. Furthermore, most States impose a 5 year. Look back on transfers. Therefore it's critical for Medicaid planning to start early for women to plan appropriately. It's important to start the process by their sixties. The earlier they start, the more options we'll have available to them.

 

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Jonathan Shenkman: Now let's shift to discuss a State planning. So a State planning statistics show that the majority of women will be managing their States on their own at some point in their lives due to outliving their male partners, or the increasing likelihood of becoming divorced or choosing to remain single. Furthermore, many women may accumulate wealth from multiple sources, including inheritance from parents or a spouse creating their own wealth as a business owner or professional.

 

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Jonathan Shenkman: My practice I have female clients who received an inheritance from their parents, their husband, and sold a business. This may be a substantial amount of assets that need to be managed correctly and prudently based on a women's marital situation and financial status. There are various items to keep in mind

 

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Jonathan Shenkman: when arranging for the orderly disposition the R. Assets. First, let's discuss considerations for a high net worth women. The Us. Estate gift and generation skipping transfer tax exemption amount available to Us. Citizens is 13.6 1 million dollars per individual. Notably this increased exemption amount is a use it or lose it. Opportunity given that it's scheduled to sunset after 2025,

 

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Jonathan Shenkman: when the exemption will revert back to 5 million dollars, and will be indexed for inflation for women of means, deciding whether to give their assets to loved ones, to take advantage of the temporary increase in the exemption amount should include, considering their level of wealth, master protection, planning, the need for future access to gifted funds. And of course, the income tax consequences to the transfer

 

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Jonathan Shenkman: for residents of States with a State estate tax gifting during life, using the exemption amount may enable those funds to escape a State estate tax that would otherwise have been imposed at debt. I've actually found that

 

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Jonathan Shenkman: actually of gifting to be very appealing to many of my female clients. Oftentimes they want to have an impact now on the lives of their children and charities they are involved with rather than wait until death. Of course, this decision is personal and different for every client, but it's important to bring up the strategy of gifting to most to most efficiently remove assets from one's estate.

 

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Jonathan Shenkman: Next are considerations for married women. It's important for married individuals to plan their States to ensure that their spouses are adequately provided for in the event of disability or death. Again, because women tend to outlive men, they typically control the ultimate disposition of a couple's assets. Couples in second marriages may have unique planning to protect their accumulated wealth and future income, to provide for their children, especially children from first marriages.

 

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Jonathan Shenkman: A spouse's right to inherit the assets of a deceased spouse depends on state law. It's important that married couples understand these laws as well as the gift and estate tax benefits available to married couples when creating their estate plans. Specifically, there's no Federal or State estate gift tax on transfers between US. Citizen spouses due to the unlimited and marital deduction.

 

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Jonathan Shenkman: and

 

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Jonathan Shenkman: when appropriate married couples need to plan their estates to combine the estate tax exemption granted to each person with the unlimited marital deduction to assure that no estate tax are payable until the death of their surviving spouse.

 

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Jonathan Shenkman: Spouses also need to seek advice regarding division and titling of assets to achieve desired objectives. Another area that is especially relevant in today's world is estate planning for single women. Single women need comprehensive estate planning to provide for their assets, loved ones, favorable, charitable organizations and business interests. If an individual dies without a will or revocable trust, the courts will take control of their estate and distribute assets according to intestacy, laws

 

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Jonathan Shenkman: all too often, particularly for single individuals. Those ultimately share who share in the decedence. Inheritance under intestacy laws are not necessarily the same. People who would have otherwise inherited the property had the individual died with a will.

 

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Jonathan Shenkman: It's also important to keep in mind that unmarried couples don't always benefit from the same spousal rights, tax incentives and legal presumptions as their married counterparts. For instance, couples who are married may not take advantage of the Federal unlimited estate and gift tax marital deductions, and may be subject to gift tax for certain asset transfers made to their partners.

 

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Jonathan Shenkman: An unmarried couple may not inherit at all under intestacy laws. If a partner dies without a will in today's world, where women are getting married later or not at all, or may be in a long-term relationship and never actually get married. It's imperative to have these points discuss with your State planning attorney and other trusted advisers.

 

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Jonathan Shenkman: and in general, given the various forms of transition that women face today. It's important that practitioners encourage them to revisit their estate, planning with every life cycle event to ensure that their assets and their loved ones are all protected. This includes updating beneficiary designations for bank accounts, brokerage accounts, individual retirement accounts, annuities, rules and trust power of attorney.

 

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Jonathan Shenkman: healthcare, proxy and life insurance policies per move, a deceased or ex-spouse and name a new beneficiary. And finally, I'd like to end with a general point around financial goals. I think this may be the key takeaway for everything I discussed here today a Pershing study found that, despite their differences, men and women share the same major financial goals. While the ultimate destination may be the same. The road to get there can be vastly different.

 

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Jonathan Shenkman: Practitioners must be attentive to any specific concerns women express, as well as familiarize themselves with the unique challenges women face the combination of listening and advanced planning is imperative to designing a strategy that puts female clients on track to achieve their financial objectives.

 

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Jonathan Shenkman: And that concludes, concludes today's program. Should you have any follow-up information questions you could reach me at Jonathan, at Parkbridgewealth Com. Email is generally the best way to get a hold of me and feel free to reach out. If I could be a resource in any way. Also, I love collaborating with my clients, tags, and legal advisors, to implement a cohesive plan, so feel free to reach out 3 more quick items before I let you go first. This concludes my Winter Webinar Series. However.

 

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Jonathan Shenkman: don't worry. My Spring Webinar series will begin in a few short weeks, and I'll send out invitation to these upcoming sessions in the near term. In the meantime, if you have a friend, colleague, or client who'd like to be notified in my upcoming webinars. They can email me with the word webinar in the subject line, and I will add them to my webinar distribution list.

 

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Jonathan Shenkman: Second, you can follow all my work on Twitter and Instagram at Jonathan and money. You could also listen to my weekly podcast called Jonathan money, which is available on apple spotify, or wherever you get your podcast you can watch my new daily financial planning videos by following me on Youtube, at Jonathan, on money as well.

 

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Jonathan Shenkman: And third, please take 30 s to fill out my survey at the end of this program. It helps me improve my webinars and provide timely and interesting content to attendees. I thank you in advance for that. And with that this concludes today session, please stay safe and healthy and have a wonderful day. Everybody.