112: Long-Term Money Goals and What You Should Know About Retirement, With Bank of America's Lorna Sabbia
#112: In the last episode of The Everygirl’s Guide to Building Wealth series, Josie is joined by Lorna Sabbia, Head of Workplace Benefits at Bank of America, who's giving you expert insights into setting long-term financial goals and everything you need to know about planning for retirement. This episode dives into the nitty gritty of the importance of retirement accounts for women, how to save for your financial goals, and the secrets to future financial success.
SHOW NOTES:
In this bonus episode of The Everygirl Podcast, Josie speaks with Lorna Sabbia, Head of Workplace Benefits at Bank of America, about saving for retirement. Josie first asks Lorna what some of the most common mistakes or misconceptions are when it comes to long term financial planning and saving for retirement. Lorna explains that most people simply do not start saving for retirement soon enough and that this is particularly a problem for women because they have longer lifespans than men. Josie asks why many women do not save for retirement early enough, and Lorna explains that women tend to be more risk-averse when it comes to investing. She talks about how important it is to have a one-on-one relationship with a financial advisor as a woman, so that you can discuss your assets and get genuine advice from someone you trust. Josie and Lorna then have a conversation about how important it is for women to feel financially confident, because it is often financially confident moves that allow men to make the most of their retirement assets. Lorna explains that the most important thing is not to be a financial expert, but to take the leap anyways. Josie asks Lorna to provide some examples of long-term financial goals that women should be planning for. Lorna discusses the cost of weddings, buying a home, and raising children which many people do not anticipate. She explains that long-term financial planning is not just about retirement, but also about other goals. She says that women make excellent investors, and that the sooner you can start saving, the better. Josie then asks Lorna how listeners can balance their long-term financial goals with other, more immediate needs, like paying off debt or saving for an emergency fund. Lorna recommends focusing on balancing debt first and foremost, and then moving on to longer, more fun financial goals. Josie asks Lorna for some tips for listeners who want to break down their long-term goals into smaller, more manageable steps. Lorna speaks on the different kinds of retirement plans that you might need, how your employer can help you out, and the difference between a 401K and an IRA. She also walks listeners through various kinds of health savings accounts, and discusses why it is particularly important to be saving for health concerns as early as possible as well. Josie asks Lorna to explain the concept of compound interest and its relationship to long-term finances. This leads to a conversation about the wage gap and how women in particular need to save for retirement and take advantage of that compound interest so that they can thrive when they are done working.
Must-Listen Moments:
[00:51] Common Financial Mistakes and Misconceptions
[05:44] Setting and Achieving Financial Goals
[10:34] Balancing Immediate and Long-Term Financial Goals
[17:01] Understanding Retirement Accounts
[26:40] Maximizing Your 401k and Health Savings Accounts
[37:15] Empowering Women Through Financial Education
More from The Everygirl:
Find and listen to more episodes at https://theeverygirl.com/