Taking steps to achieve financial peace of mind and confidence
At some point in their lives, 9 out of 10 women are expected to be the sole financial decision maker. However, numerous studies show that women are less confident than their male counterparts in making financial decisions. Mohini McCormick and Christina Castrejon of Calamos Wealth Management specialize in working with women and families. Here are steps they suggest women take to achieve financial peace of mind and financial confidence:
1. Understand your feelings and beliefs about money.
People form personal beliefs about money from an early age. Money can invoke feelings of happiness and relief in some people, or feelings of stress and anxiety in others. Think back to previous experiences with money. How did your parents handle money? What did you do with your first paycheck? Once you understand your thoughts, beliefs, and biases towards money, you can recognize and take into consideration the effects they may have on your financial decisions.
2. Determine what you want your money to do for you. Ask yourself: What are your goals and objectives? What is the purpose of these funds? For some, money may provide security and ease of mind, while for others it may be to take vacations, send the kids or grandkids to college, start a business, or retire with the freedom and flexibility to live life and leave a legacy to heirs.
3. Create your financial roadmap. Once you’ve articulated goals for your money, you have the focus to create a financial roadmap for the future. While you may be able to take a few initial steps on your own, many individuals may benefit from partnering with a financial advisor or planner, who will review your situation holistically and help create a customized plan that fits your lifestyle and objectives. If a financial plan is already in place but you took a passive role in creating it, revisit the plan with a new mindset.
4. Surround yourself with a team of experts. Hire professionals to assist in guiding you on your path to financial security, and remember that it is important to hire the right people. Understand their philosophy toward managing wealth, as well as how they work with clients. Make sure your beliefs about wealth and your personal risk tolerance align with theirs.
5. Periodic plan updates. Once you have your plan in place, review it on a periodic basis—annually, at minimum—to ensure you’re on track. You may need to make adjustments based on the dynamic landscape of the economic environment or changes in your needs or personal situation, such as a new job, birth of a child, marital status, or retirement.
6. Stay focused on your long-term goals and objectives. Even with an established financial roadmap, you may run into bumps or detours. These are to be expected. Let your long-term goals guide you and don’t be distracted by the noise along the way.
Mohini McCormick and Christina Castrejon are wealth advisors for Calamos Wealth Management, headquartered in Naperville, Illinois. Each brings more than 10 years of experience in providing comprehensive wealth management services to affluent individuals and families in the greater Chicago area. The firm can be contacted at CalamosWealthManagement@calamos.com or 888-857-7604.