❌ The two big mistakes that keep women from retiring richer

Stat Of The Day

90%

Catching a fireworks show on the 4th? Don’t be surprised if it feels a little…meh. As NPR reports, 90% of professional display fireworks come from China. Thanks to the Trump tariffs, they’ve gotten pricier and harder to come by. In other words, less bang, more bucks.

The Two Big Mistakes That Keep Women From Retiring Richer

Women retire with less. A lot less. A 2024 Prudential study found that women have less than a third of the median retirement savings that men have. There are countless reasons why – wage gaps, caregiving responsibilities, and more.

But change is coming: nearly half of American women expect to inherit wealth in the next decade, and by 2030, women are projected to control over 60% of the world’s assets. That’s massive.

Still, having more money isn’t enough. We need to be strategic about investing, drawing down assets, minimizing taxes, and continuing to grow wealth. Many of us also want to leave a meaningful legacy. So, how do we do it?

Hilary Hendershott has a few ideas. She’s a CFP and founder of Hendershott Wealth Management. Hendershott recently joined the HerMoney Podcast to break down what it really takes to build a retirement plan that works.

As she explains, many women are making two key mistakes. First, not having an empowered, confident mindset. Second, they let a lack of trust in the stock market get the better of them. As Hendershott notes, it’s easy to get spooked by headlines, but letting fear keep you from investing is costly. “In reality, the stock market is the greatest generator of individual wealth in human history,” she says. “So, take the time to build that relationship and that deep trust, because time in the stock market really makes a huge difference.”

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This Week In Your Wallet

American households earning over $250,000 or more typically fall into the top 10% of earners. But despite what looks like financial success on paper, many don’t feel wealthy. “Years of soaring costs for housing, college, insurance and borrowing feel oppressive, even for those with hefty paychecks,” reports The Wall Street Journal. “They might be sitting on a mountain of home-equity gains, but that doesn’t provide a huge sense of security when companies are getting rid of white-collar workers and it’s the rare employer that offers a guaranteed pension.” Case in point: Only 26% of people in the top third of earners (households making about $130,000 or more) said they were better off now than a year ago in the most recent survey of consumers from the University of Michigan. That’s the lowest level since the height of the 2009 financial crisis.

13 isn’t usually considered a lucky number…but it is for this list, which highlights 13 smart ways women 50 and older are building wealth, according to financial pros. One of those experts? None other than HerMoney’s own Jean Chatzky, who points out that while owning a home can be costly and a lot of work, it pays off financially in ways you might not expect. “Owning a home helps a woman over 50 build wealth,” Chatzky says. “When you are paying down a mortgage (unlike paying rent), you are essentially contributing to a forced savings account. The equity that you’re building can later be tapped for other uses—housing, yes, but also long-term care, healthcare, educational expenses for the next generation or many other things.”

Do you earn more than your partner? While the dynamic is common, there’s no universal playbook for navigating the financial (and emotional) challenges it can present. That’s why we’ve put together the next best thing: a cheat sheet with five essential convos every couple in this situation should have to keep things running smoothly. One of the most important? Talking through short-term goals and how to fund them together. For L.W. Northmore, who earns over 50% more than her husband, that goal is travel. “My husband also enjoys traveling, so we share the cost — but not evenly,” she writes. “Most of the time, I pay for the elements of the trip that tend to cost the most and need to be decided in advance, like flights and hotels. When we’re on the trip, we split expenses that are easier to decide on an individual basis, such as whether to splurge on a meal or special experience.”

Things That Save You Money

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This summer is shaping up to be a scorcher. Don’t let your home cooling bill follow suit. Here are ways to cut costs, including making sure your window fan is blowing in the right direction.

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The key to saving on groceries and household items could be making a small investment in some of these cheap gadgets. For example, wool dryer balls (around $10) cost significantly less than buying box after box of dryer sheets. Pro tip – spritz them with essential oils, like lavender, to keep your clothes smelling amazing.

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Don’t leaf your plants high and dry. Protect your green investment by knowing the signs of underwatering. For example, leaves that are beginning to curl = a distress signal.

Ask Jean

Today’s question comes from Becky. She writes: I successfully rolled over my health savings account (HSA) from my previous employer to my current one. The old account is now empty. How long should I keep the statements and other paperwork for the now-closed account?

It’s smart to hang onto your HSA-related paperwork, at least for a little while, even though the account has been closed. This info will help protect you in the event of a future tax question or audit. What you hold onto, and for how long, will depend on how the transaction went down.

First up, a “trustee-to-trustee transfer."This is when you initiate a request through your new financial institution to retrieve funds from an existing account at another institution. “At no point is a check made out to you during this process,” explains James Hargrave, CFP and founder of Pillar Financial Planning. “Because of this, retaining old account statements holds limited long-term value. In most cases, your W-2 will report all contributions.” Hargrave, who recently completed this process personally, says he’ll hold onto his final statement for one tax year and tax-related documents (such as the W-2) for seven tax years.

On the other hand, if you received a distribution check made payable to you and deposited it into the new HSA within 60 days, Hargrave recommends keeping that documentation (for example, recent account statements) for at least seven years. “In this scenario, you will receive a Form 1099-SA indicating a distribution,” he explains. “To avoid potential penalties, you must have proof that the funds were re-deposited into an HSA within the allowable time frame.”

One last point – if you’re paying for healthcare costs out of pocket, and letting your HSA account build, you will want to save your medical receipts indefinitely. Then, you can use them anytime in the future to take a dollar-for-dollar withdrawal from the account that you won’t be taxed on.

Submit your questions to Jean here.

More For You To ♥

🔄 In today’s world, the old rules for building financial security no longer add up – and women know it. If you’re budgeting, working hard and still coming up short, it’s time for a reset. FinanceFixx, HerMoney’s four-week financial coaching program, will help you get clear on your numbers, understand what’s working (and what’s not) and learn how to make smarter, more confident decisions – even in a system that feels stacked against you. Our next session kicks off on July 15, and we saved you a seat.

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