Ask Your Money Doctor
Paula Dougherty, CFP®, ChFC, CLU

Certified Financial Planner Paula Dougherty has been with Ameriprise Financial Inc. since 1994 and she is still passionate about financial planning. She assists women with financial planning including wealth advising, investment, retirement, education, and risk management needs. Her business clients in Missouri include Kraft Inc., CoxHealth, and Associated Wholesale Grocers Inc, to name a few.

Her extensive education and knowledge has helped to launch a successful private practice and she regularly delivers educational programs, often to women’s groups, educating them on the need for financial awareness and understanding. She holds an MBA with an emphasis in management and other financial designations recognized in her industry, which include Chartered Financial Consultant (ChFC), Chartered Life Underwriter (CLU), Chartered Retirement Planning Counselor (CRPC) . Paula regularly contributes financial columns to a local business journal and has appeared on news segments relating to saving, investing, retirement planning, and other financial topics.

Just as her clients are busy, successful people, Paula also serves on various boards including Rotary, United Way, and her church stewardship committee. She has also served as President for the Alliance of Professional Women. Paula was an active member of the Junior League of Springfield for many years, as well as Ozarks Marriage Matters, Ozark Chamber of Commerce and numerous business groups. She has also been recognized as one of the 40-under-40 most successful business professionals in the Springfield area.

Investment Inquiry

Dear Money Doctor,

My 401(k) provider just added so called "lifecycle funds" to our investment choices. These funds are new to me and I feel that I know so little about investments to begin with, not to mention if I have a proper portfolio for my age and time until I retire. These funds are of interest to me, but how do I know which fund to pick? ~Investment Inquirer

Dear Investment Inquirer,

Lifecycle funds were designed to make retirement investing easier and automatic. Saving into a 401(k) was designed with these points in mind, so lifecycle funds can be ideal. Lifecycle funds are designed to match your stage of life with a pre-mixed set of stocks, bonds and cash according to age and risk tolerance. The funds typically automatically adjust based on the number of years until the investor's expected retirement. Check with your 401(k) provider to see if they offer a risk assessment profile or questionnaire to help determine your level of risk and which funds are appropriate for you. ~Paula, the Money Doctor

Non-Saver

Dear Money Doctor,

I really try, but I don’t think I’m smart enough or rich enough to save and invest. I’ve also got a lot of family responsibilities with kids and aging parents, so I don’t have time to learn. Would it be so awful to wait a while before beginning my financial planning? ~Non-Saver

Dear Non-Saver,

Most women’s excuses for not saving are rooted in common myths they believe about money. Here are some tips that might help you get started on the road to saving and investing. ~Paula, the Money Doctor

Women’s Money Myths

• I don’t have enough time. The longer you wait, the more it can cost you. You owe it to yourself to invest a small amount of your time towards creating a secure retirement for yourself. Time is actually your greatest asset with regard to compounding your money and the time value of money. Make it work to your advantage!
• I don’t have enough money. With discipline practically anyone can invest a regular amount over time and avoid feeling pinched by saving. Automate, automate, automate! If you can make savings and investments just happen without you having to THINK about it, the more likely it is to happen.
• I don’t know enough. You can read about investing, do research, and get a coach. It’s up to you. The bigger risk is “analysis paralysis.” You don’t have to know everything to get started, and many people would be happy to help you reach your goals.
• My husband handles it. Every woman, married or single, needs to be financially literate as much as she needs to be able to read. In many couples, the woman is a better planner and investor than the man. Work together to share your financial knowledge and planning so neither one will be left in the lurch by a sudden loss.

Puzzled

Dear Money Doctor,

Why is it so hard for me to put money aside? It doesn’t seem like the men I know struggle this much, so I guess there must be something wrong with me. ~Puzzled

Dear Puzzled,

Actually, there are plenty of good reasons women have a hard time saving, but there’s good news too. Women are actually better investors and better entrepreneurs than men. Take a look at these realities of women and money. ~Paula, the Money Doctor

Women’s Money Realities

• Women earn less. Women are paid 76 cents for every dollar men are paid.
• Women live longer. Women outlive men by seven years and the average age of widowhood is 56.
• Women bear family responsibilities. Women spent more time out of the workforce caring for family (on average 11.5 years compared to men’s 16 months.) Therefore, they generally have changed jobs several times and may have less in the company retirement plan.
  
• 47% of investors are women. Women investors have outperformed male investors in 9 out of the last 12 years. Women tend to be more patient and cautious when it comes to their money!
  Women start businesses. Women start small businesses at twice the rate of men.

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