Saving for your Golden Years and Intelligent Investing

Retirement can be one of the most enjoyable times of life – full of fun, family, and taking that trip you always wanted. But it requires a lot of planning to make sure you have enough money to pay the bills and do all the things you want.

We spoke with alumna and co-host of the Smart Women Invest podcast Michelle McKinnon, Delta Phi. She is also a Certified Financial Planner and Senior Financial Advisor with Payne Capital Management in New York City. Michelle shared some of her insights on smart retirement planning.

WHAT DREW YOU TO THIS PROFESSION?

I started out as an environmental studies major and took a college job at a greentech venture capital firm. There, I gained an interest in finance and changed my major. I have always been passionate about helping women and have a lot of women clients today, so it’s been a great fit.

WHAT ARE SOME TIPS YOU HAVE ABOUT SUCCESSFUL RETIREMENT PLANNING?

Start now, no matter how much money you have to save. Young people especially have decades for their money to grow. It’s almost like a ‘free lunch’ – your money can grow on its own and typically double every 10 years or so, depending on your investments. Second, look where you can save NOW, no matter how small. Maybe you don’t buy that cup of coffee every day, or choose to quit the gym membership you never use. Go over your budget to find places to save and invest that money for your future. Third, make sure you are maximizing your employer’s match to your retirement account. That’s free money!

Ultimately, the way you build wealth is by saving money and investing it wisely in the market.

WHAT SHOULD SOMEONE LOOK FOR IN AN ADVISOR?

Find a good advisor who you trust, who ‘speaks your language,’ avoids too much jargon, and communicates in a way that works well for you. It’s like finding a doctor. You want someone you trust and understand, but who you are also comfortable questioning.

Everyone digests information differently. You shouldn’t be scared to ask questions and your advisor should welcome that. I’ve seen too many people lose money because they were afraid to ask questions.

HOW AGGRESSIVE SHOULD I BE WITH MY RETIREMENT INVESTMENTS?

Like with all investments, that depends less on your age and more on your goals. If your goals are nearer, be more conservative. If your goals are farther off, be more aggressive. Look at your timeline. Start with your goals then pick your investments.

HOW DOES RETIREMENT PLANNING DIFFER FOR WOMEN?

On average, women tend to outlive men. Even if you’re 60, you may live another 35 years. So, women need to plan more and may need to be more aggressive with their investments to make sure the money lasts.

Women can have a very different relationship with money than men. Typically, men tend to be more aggressive with their investments, whereas women tend to be more conservative. Men generally feel better when asking questions of an advisor as well.

As women become more financially independent, we also need to become more confident about finances. Part of my job is to help women achieve this.

TELL US ABOUT THE PODCAST "SMART WOMEN INVEST."

It is my baby! Now I have a co-host, Jennifer Angell. We aim to educate women about finances by sharing insights and stories. We’ve had episodes like budgeting for various stages of life, and how and when to ask for a promotion at work.

These can be very different experiences for women than for men, especially when it comes to closing the gender gap in the workplace. Women need to be their own champions and demonstrate their own worth, both now and in the future.

DO YOU HAVE ANY CLOSING THOUGHTS OR ADVICE?

Investing for retirement is important. But don’t lose focus on your medium-term finances. Have emergency savings and other investments you can access without having to pay penalties and higher taxes. If all your money is locked up in retirement accounts, you’ll have a harder time accessing it. It’s important to have both.

Smart Women Invest is Michelle McKinnon and Jennifer Angell’s podcast that educates women of all ages about their finances and helps close the gender money gap.

Find it on iTunes or your favorite podcast app.