In July 2019, Treehouse Wealth Advisors’ Diane Bourdo, CFP®, teamed up with Ellevate to work hand-in-hand with a group of 25 women who were seeking financial empowerment and guidance. During the event, Diane shared some cornerstone financial skills and insights; guided participants through fundamental financial planning exercises; and helped them discover some inspiration that lies in the possibility of financial security.
Here are a few key points from their discussion:
Financial Planning 101
Treehouse Wealth Advisors has always believed in the importance of establishing financial goals that match up with your values — these are the people, priorities and ideals that matter most to you. Taking this approach allows you to gain a more holistic, big-picture view of your financial future and sets you on a more rewarding and intentional path toward achieving your goals.
After discussing this approach with the group, Diane broke down financial planning to a more granular level, introducing the concept of the “financial dashboard”: A top-level view of the key figures you can use to identify your level of financial wellness, including income, expenses and net worth. Today, there are plenty of convenient, digital tools you can use to keep a pulse on your financial dashboard, such as Mint, You Need a Budget and Tiller. By focusing on the basics of financial planning first, this set a strong foundation for the next segment of the discussion:
Investing 101
“Should you invest or save?” “Why invest in the first place?” Diane kicked off their discussion on this topic by answering some of the questions that all new investors face.
At its most basic level, investing is the process of buying an asset for the potential of it growing in value. As opposed to saving, investing gives you the valuable opportunity to grow your wealth over time — and regardless of what goals you have set for the future, it’s important to start investing early, proportional to your time horizon and tolerance for risk.
After reviewing some basic yet essential investment principles, they discussed some critical steps all women should take to maximize their savings for one of the most important milestones they’ll face: retirement. Two basic steps include:
- Maximizing your employer match: Make sure you have a strong understanding of what your company offers, in terms of matching contributions, and how that affects your retirement goals.
- Choose your retirement accounts wisely: Before jumping straight into some of the most typical savings vehicles, such as a 401(k) or a standard savings account, take time to research and evaluate your options. Review your potential tax liability with each account before making a final decision.
