Women’s History Month: A Look at Women and Their Financial & Investing History

Women’s History Month: A Look at Women and Their Financial & Investing History

Ever since the women’s liberation movement of the 1960s and 1970s a lot has changed for women in America, thanks to spitfire pioneers who generated shifts in societal attitudes and pushed for legislative changes.

The National Organization of Women advocated for six measures to ensure women’s equality: enforcement of laws banning employment discrimination, maternity leave rights, childcare centers (so mothers could work), tax deductions for childcare expenses, equal and unsegregated education, and equal job-training opportunities for women in poverty. These all took many years to pass.

Eventually, as more women entered the workforce employers were barred from firing a woman because she was pregnant. More women began running for political office. No-fault divorce laws arose. Women began serving in combat, became astronauts, and sat on the Supreme Court bench. Moreover, they could finally apply for a credit card or loan in their own names.

Women in financial history

Women have been making their mark on the financial sector since our country’s early days. In fact, future First Lady Abigail Adams began trading in government-issued bonds during the Revolutionary War with strong results, and a woman named Victoria Woodhull opened her own brokerage house in 1870 with her sister; she also ran her own newspaper company and was the first woman to run for U.S. President.

Some more notable firsts in modern times:

Women and investing

The women’s liberation movement notwithstanding, it’s been an uphill climb for women to take their rightful places in the workplace and take their seats at corporate tables. As of January 1, 2020, there have been 82 individual women in Fortune 500 CEO roles in total, with three serving as CEO twice.

However, more women are undergoing a new women’s liberation movement when it comes to their investment choices . . . and discovering they can take more control of their financial futures through self-directed investing.

Self-directed IRAs enable investors to better control their retirement savings by investing in alternative assets they know and understand. Although historically, women have taken a more moderate approach to risk, those who prefer to make their own investment decisions can open a new self-directed retirement plan and include non-publicly traded, alternative assets to build a more diverse retirement portfolio. These investments might include real estate, private equity, private lending, partnerships, precious metals or impact investments.

Self-directed investors also conduct their own research and due diligence about the alternative assets they wish to include in their retirement plans. They may already be investing in these assets outside of their existing retirement accounts. In fact, that’s how our founder and CEO, Jaime Raskulinecz, started Next Generation.

Next Generation’s Women in History

Jaime was a seasoned real estate investor who wanted to include real estate in her IRA; she discovered self-direction as a retirement strategy that would allow her to do so. As a pioneer in her own right, Jaime started a company in 2004 to enable more investors to include nontraditional investments in their retirement plans and Next Generation, a third-party administrator for those plans, was born. Continuing to build on her success, in 2017 she led the formation of its sister firm, Next Generation Trust Company, which now acts as custodian for all of its accounts.

Jaime and her partner Linda Varas, Principal of Next Generation, have always believed in the power of women in the workplace and our team is a testament to that. Jaime and Linda have cultivated a career-building environment for women (and men, too!), as you’ll see on our team page.

We are proud to recognize Jaime’s many professional achievements as we continue to educate more women on the power of self-directed investing. Want to take control of your future, today? Sign up for a complimentary educational session with one of our knowledgeable representatives. Alternatively, you can email us directly at NewAccounts@NextGenerationTrust.com or call 888.857.8058 to get started.

Americans are Working Longer

Recent research from the Transamerica Center for Retirement Studies* shows that Americans are working longer, with 54 percent saying they expect to work past age 65 or never retire at all. Twenty-two percent of respondents said they plan to retire either at age 65 or later, and 22 percent plan to retire earlier.

While there are personal factors around why Americans are working longer – such as maintaining social connections, longer lifespan and emotional health – financial factors are also part of this story. In the U.S., it’s often not having enough saved for retirement and Social Security concerns; three-quarters of the workers surveyed said they are worried that Social Security will not be available when they retire.

Global expectations around retirement age are very interesting to look at and compare with U.S. figures. Transamerica conducted additional research across 15 countries, in collaboration with the Aegon Center for Longevity and Retirement. While the current expected age of retirement in the U.S. is 66 (shared by the United Kingdom and Australia), it is 65 in many European countries and Canada, 60 in India, and 58 in Turkey and China. The findings are based on 14,400 workers and 1,600 retired people surveyed online between 22 January and 14 February 2019.

However, as we know, the average retirement age is rising in the U.S.; for Americans born in 1960 and later, it is 67. The Netherlands is already there and according to the study, France, Spain and Poland are planning to move their retirement age to 67 as well.

Americans are Working Longer, but a Self-Directed IRA Can Help Make the Most of Your Employment and Retirement Timelines

In the Transamerica/Aegon global study, a majority of respondents said they envision an active retirement, where work and leisure can co-exist. Sixty percent cited travel and 57 percent cited spending time with family and friends as important retirement goals; 49 percent said they look forward to pursuing new hobbies. Additionally, 27 percent aspired to do volunteer work and 26 percent planned to include some form of paid work. The two biggest retirement concerns were declining physical health and running out of money.

Whether you retire at age 65 or 66, or continue to work in some capacity well into your retirement years, you can make the most of your retirement savings through self-direction. A self-directed IRA allows you to include many alternative assets, which are not allowed in typical retirement plans, and build a more diverse retirement portfolio. This also allows investors to hedge against the volatility of the stock market, and include nontraditional investments they already know and understand. Why limit yourself to stocks and bonds when you can invest in real estate, precious metals, promissory notes, private equity and joint ventures—and have more control over your returns—within a self-directed IRA?

At Next Generation, we help individuals make the most of their retirement savings and live up to their retirement goals through self-directed retirement plans. If you’re someone who’s comfortable making your own investment decisions and conducting your full due diligence about certain types of investments, you may benefit from self-direction.

Plus, with the SECURE Act provisions that enable workers to continue contributing to a Traditional IRA for a longer timeline, and delay taking required minimum distributions from their plans until age 72, there’s more time to build up one’s retirement nest egg with a broad array of nontraditional investments.

Want to learn more? Sign up for a complimentary educational session about self-directed IRAs with one of our knowledgeable representatives. Alternatively, you can call us directly at 888.857.8058 or email NewAccounts@NextGenerationTrust.com.

*Online survey conducted between October 26 and December 11, 2018 among a nationally representative sample of 5,923 workers who were U.S. residents, age 18 or older; and full-time or part-time workers who are not self-employed and work in a for-profit company employing one or more people.

The SECURE Act and Self-Directed Retirement Plans

The SECURE Act, signed into law on December 20, 2019, is comprehensive legislation written to expand retirement savings, simplify existing rules, preserve retirement income, and improve plan administration. SECURE stands for Setting Every Community Up for Retirement Enhancement.

The bill mostly makes significant changes to workplace retirement plans; other provisions affect retirement plans in general, including self-directed IRAs. Here is a look at some of the changes, effective January 1, 2020.

Individuals

For those who own a self-directed Traditional or Roth IRA:

Business Owners

For business owners who have a SEP IRA, Solo 401k, or other qualified retirement plan:

All SECURE provisions have tax consequences for individuals and plan sponsors. As always, the team at Next Generation strongly recommends you consult your trusted advisor regarding how the SECURE Act provisions may affect your specific tax situation.

Secure a more diverse retirement portfolio through self-direction

In light of the recent changes, consider including alternative assets within a self-directed retirement plan. Those who are comfortable making their own investment decisions and who understand certain nontraditional investments can build up their retirement savings—and hedge against stock market volatility—with such assets as real estate, precious metals, private equity, hedge funds, private notes, and more.

At Next Generation, we’re here to answer your questions about self-direction as a retirement wealth-building strategy, or how certain provisions of SECURE may affect your self-directed retirement plan. You can arrange a complimentary educational session with one of our representatives, or contact us directly at 888.857.8058 or NewAccounts@NextGenerationTrust.com for more information.