Due to lower earnings and higher life expectancy, poverty in old age mostly affects women. It is all the more important to think about a financial plan to provide for old age. Mag. Elham Ettehadieh, Board Member of Partner Bank, gives financial tips and wants to encourage women to take their finances into their own hands.
1. Awareness
Realizing that provision and security are essential to being financially independent is an important first step. With a look at your own finances, a suitable plan can be developed.
2. Knowledge & Education
Investing in your own training and professional future is the next step in being able to act and make decisions independently and in a self-determined manner.
3. Build reserves
A cash reserve of two to three months’ salary is recommended for unforeseen expenses. This helps to deal with unplanned costs more safely and calmly.
4. Expand financial literacy
Expanding financial literacy is essential to understanding wealth-building opportunities. Further training or the use of well-founded advice is helpful for this. Individual options can be worked out in a discussion with financial advisors.
5. Think about precaution
With the aim of maintaining a certain standard of living in old age, old-age provision with securities investments is becoming more attractive. With the investment in quality stocks, consisting of global brands as well as future-oriented, robust industries, target-oriented pension strategies can be formed. It is important to invest regularly and over the long term in a diversified stock portfolio.
6. Real asset strategy
Investing in durable material assets can be a precaution against inflation and loss of purchasing power. A property can compensate for the depreciation of money in the long term and offer an increase in value when sold. A tried and tested and crisis-proof means are gold and other precious metals. Physical gold survives periods of inflation and is a useful addition as a precautionary element.
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