What an amazing conference! Thank you to everyone who attended the Money Matters Women’s Conference last week. We shared an enjoyable morning with friends, increasing our knowledge and having fun. Here are some of the highlights.
We are experiencing a wealth transfer unlike any in past generations. More women are controlling wealth than ever before. Why?
- Women live 5 to 10 years longer than men on average.
- More women have joined the workforce, earning higher incomes.
- Women are a force when it comes to saving for the future.
In 2020, women controlled $11 Trillion in wealth. By 2030, that number is expected to increase to $30 Trillion.
Generations X/Y, those born between 1965 and 1994, controlled 28% percent of the wealth in the U.S. in 2020. That number is expected to increase to 47% by 2030.
Women today need to be prepared—educated about investing opportunities, wealth management options, tax implications and planning, and even wealth transfer. They need to be empowered to protect, grow, and use their wealth as a tool to create opportunities for themselves, their family, and others.
Kyle Coffey of Capital Group | American Funds shared historical insights regarding the economy and markets during election years. Kyle explained that elections come and go. You should keep your sights on the long term, focusing on your vision for the future. Some key takeaways were:
- There have always been tumultuous events. The current and political challenges may seem unprecedented, but a look back shows that controversy and uncertainty have surrounded every campaign.
- Successful long-term investors stay the course and rely on time rather than timing.
- Investment success has depended more on the strength and resilience of the American economy than on which candidate or party holds office.
James Derrick, Chief Investment Strategist at Smedley Financial, explained the challenges Americans are facing in a good economy with persistent inflation.
The Fed raised rates to tame inflation, the expectation has been that prices would come back down. In many instances, that has not been the case.
Housing prices are a good example of this. Interest rates have increased from a 2.5% low up to 7%. At the same time, a low inventory of houses has kept prices relatively high. If you have not renewed your auto insurance policy, you may be in for a big surprise. Over the past year, premiums have increased 20% on average.
Americans are dealing with the impact of inflation by reducing spending, taking on additional jobs, or using credit. The latter is a big concern. A key takeaway was to assess your personal financial condition and determine if adjustments are needed.
Mikal Aune, Vice President of Wealth Management at Smedley Financial, shared the importance of family meetings, formal and informal. Creating opportunities to talk about finances with your family, at all ages, is crucial. These meetings allow you to share your values and experiences about money and wealth.
Younger children can benefit from earning a small allowance. Teach them to save 10% to 50% of what they earn. Then, teach them how to spend what they have earned. This will create lasting habits that will significantly impact their financial success. Older children benefit when they are required to pay some of their expenses. They learn how to budget the money they earn.
Adult children who likely have careers and families stand to inherit your assets when you pass away. Have meetings with them to discuss what money means to you. Share your values by sharing your experiences. Tell your story. What happened in your life that encouraged you to develop good financial habits?
We hope to see you at the Money Matters Women’s Conference in 2025!
