Mythbusters: Women & Financial Planning

Myth #1: A financial advisor won't work with me unless I have a lot of money to invest—and the fees are too high.


Building a strong retirement plan has more to do with strategizing the best ways to maximize your future assets than it does with your current income. Because of this, financial planners prefer to establish client relationships early on and to build a strong foundation that consists of an investment strategy and life insurance. For younger women in the early stages of retirement planning, many financial services firms have leveraged technology to provide financial advice in new formats at affordable rates.

Myth #2: I have to save for my child's college education, so I can't save for my retirement.


It is crucial to fund retirement first before contributing to an education fund. Why? You, or your child, can always take out loans for college, but you cannot borrow for retirement. The best way to support your children is to ensure your own financial security first. If you retire without the necessary means to support yourself, you will become a financial burden to your children down the road.

Myth #3: I don't earn enough money to save.


Even a small amount can grow into something substantial over time. The first step is to change your mindset and truly believe you have the ability to save money. Look to cut out smaller expenses. Put away as much disposable income as you can—you should save as aggressively as you can if you're just starting out. Once you meet with a financial planner, he or she can help you monitor the amount you’re putting away to maximize your assets over a long period of time.

Myth #4: I don't understand financial jargon.


A Prudential study has found that women want less jargon, and stronger ethical practices, from financial services firms. As with any new language, practicing and conversing about your finances more regularly will help you build confidence. One step you can take before meeting with a planner is to familiarize yourself with the basics. Your-Checklist-to-Financial-Freedom . Consider picking up a personal-finance book, or conducting a simple search online to help demystify some terms. Take stock of the financial assets and obligations in your household so you can speak knowledgeably about

Myth #5: I don't have time for financical planning.


You may be extremely busy. It's true. But like everything that's good for you—exercise, cooking, time spent with loved ones—when you put a little thought and organization behind financial planning, it can go quickly, smoothly, and yield excellent results. Set aside just a few hours one Saturday to outline your immediate, mid-term, and long-term goals. Consult your financial planner to create a roadmap for how to get there. Then, watch your savings, and your future financial security, grow. Easy as 1, 2, 3.

What are some financial myths you’ve learned to overcome? Share in the Comments section below.