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In a family, a man usually manages the money and savings, but we ask – why not the woman?

A cool wind blowing gently through the palm trees, caressing your hair as you lie on a hammock in the summer sunshine, under the azure sky and watch your grandkids play merrily in the ocean ahead. A scene of pure contentment isn’t it? Well that’s what most of us imagine our lives to resemble post retirement. Retirement – that phase of our lives when all we say is “goodbye tension, hello pension.”

However for a woman, her job never stops. As a woman once remarked famously, “A retired husband is often a wife's full-time job.” So how exactly would a wife retire you might ask? By planning her savings and funds in advance!

Women readers – take our poll, the Money Mojo, to gauge your economic insight and share your experiences with us!

Financial Planning: It takes two to tango?
It has often been noted that though a couple consists of two individuals, when it comes to dealing with the finances, often the woman steps aside and lets the man maintain control. About a century ago, this system of financial planning was in-keeping with the values of the time. But now, especially with women taking a lead in the office arena, they should step up and bat whenever there is a money googly thrown at them. And this applies to homemakers too!

Money for your own future is best controlled in your own hands. We’re not saying decline the help of your father/brother/husband or even son when it comes to money matters. What we are rather saying is that ‘you’ start taking an active interest in planning your savings and automatically you will find yourself inclined towards saving for yourself.

So now to get back to planning for that holiday...the world cruise, or even that beautiful little villa home where you can potter around in the garden and soak in the sun. You want it? Let us tell you a path that will make it easy for you to get it. Savings are the essential component of all your future plans, yet we suggest a way to increase your savings - by investing in equities (stocks), and equity funds, which over a long term investment period will reward you with higher inflation-adjusted returns.

So you may not only be able to afford that luxury villa, but can encash your double bonanza by even going on a holiday in style! Who said life ends once you retire? As far as we’re concerned, here is where you reap the rewards of your investments and truly start to enjoy!

Let’s start at the very beginning...
Investing your hard earned money into stocks may not seem like the safest option for you, yet we will show you why ‘it is’ and how to make good returns on your investments. First we must determine your savings in relation to your age factor. The earlier you start saving and investing, the higher will be your return, especially if you invest in stocks and equity funds from a long term perspective.

For instance, have a look at the chart below to understand how your savings add more value to your wealth portfolio when invested in stocks as opposed to savings in banks or even gold, which do not provide you with a high return on investment, even over a longer time period.

Returns over 5 year period
Source: Trend, gold.org, nsiindia.gov.in

See, it’s that profitable! And we make it easier for you by providing you with a vast and enterprising resource of opportunities to help you build your own enviable portfolio of quality stocks, which will keep you smiling even as you retire. And to help you get started on the right track, we suggest you sign up for The 5 Minute WrapUp (a free resource)

Over the next few months we plan to cover a range of issues that are important to women interested in investing, and offer solutions for the same. If there is anything in particular that you would like us to cover, kindly write to us!




Category Shares & Stock, Other Articles by - Equitymaster 



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