EP 149: Financial Planning for Female Breadwinners with Sara Gelsheimer

by Peter Lazaroff | Apr 24, 2024 | Podcast

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I’m thrilled to welcome back to the show Sara Gelsheimer, Senior Wealth Manager at Plancorp, who has carved a remarkable career path with a profound commitment to empowering women in finance.

Want to meet with Sara? Schedule a call with her here!

In our conversation today, we’ll explore several topics that, while important for everyone, hold particular significance for many women managing both their careers and personal lives. We recognize that financial planning isn’t just about numbers; it’s deeply personal and intertwined with our life choices and challenges.

In this episode, Sara shares her observations and advice for women who are the primary earners in their households. And not only do we discuss the specific financial and social challenges they face, Sara also offers specific strategies to manage these responsibilities effectively.

Here are my notes from our conversation.

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Empowering Women in Finance [00:04]

Sara’s story begins with her academic life at Murray State University, where she started as a social work major. Inspired by her mother’s work and influence as a social worker, Sara entered college with a clear vision of helping people, just like her mother did.

But Sara’s trajectory took an unexpected turn when she opted to take a basic finance course alongside her social work studies. Her professor noticed her exceptional performance in the class and questioned her career choice. Through those conversations, she came to realize that the role of a CERTIFIED FINANCIAL PLANNER™ as a profession centered on helping people, aligning with her initial aspirations.

Sara underscores the invaluable overlap between social work and financial planning, particularly how her training in social work has enhanced her capabilities as a financial advisor, especially when dealing with clients and understanding their needs.

But as her career progressed, Sara observed a concerning trend: often, it was the male partner who was more engaged in financial advisory meetings. This observation troubled her, as she saw many women either absent or less interactive during discussions that would significantly impact their financial futures. This observation led her to spearhead InspireHer, with the goal of empowering women to become more involved and confident in their financial lives.

Sara’s dedication to this initiative is driven by her personal mission to ensure that women are not only present but are active and inquisitive participants in their financial planning processes. She emphasizes the importance of women’s engagement in financial discussions, advocating for a more inclusive approach that encourages questions and deeper understanding, which in turn leads to better financial outcomes for individuals and families alike.

Challenges for Female Breadwinners [3:54]

In this segment, Sara shares some unique financial and lifestyle challenges faced by female primary earners and the strategies to manage time and resources effectively.

Sara starts by acknowledging the modern prevalence of dual-income households, where both partners work full-time, leading to a complex mix of financial management, child rearing, and household tasks. She points out, “One of the biggest things that I have found really with male or female breadwinners is time.”

Time management emerges as a central challenge for female breadwinners who must juggle career responsibilities with family obligations, often leading to financial tasks being neglected or postponed.

Sara further explores how these responsibilities can be particularly daunting for women, who might not feel as confident about financial matters or may even dread them. “A lot of people don’t like talking about money and the things that we dread and don’t like we often procrastinate on,” she explains. This hesitation can lead to financial decisions being put on the backburner, which might impact the family’s financial health.

To combat this, Sara emphasizes the importance of prioritizing financial goals and dedicating specific time to manage finances.

She discusses the role of financial advisors in helping clients prioritize their cash flow, particularly in households with substantial income. She illustrates with examples from her practice, where she guides clients through the myriad of saving options available—from high yield savings accounts to IRAs and 529 plans. Sara highlights the necessity of tailored advice, noting that generic financial rules may not suit everyone’s unique circumstances. She shares a story about advising new clients who, despite conventional wisdom suggesting otherwise, chose to prioritize paying off their mortgage due to a forthcoming significant reduction in their income.

Through her detailed analysis, Sara illustrates the intricate balance female breadwinners must maintain between managing their professional lives and their roles at home. She sheds light on the emotional and practical aspects of financial planning for women who are primary earners, stressing the need for customized financial strategies that reflect the personal circumstances and goals of each household.

This segment not only highlights the financial challenges faced by female breadwinners but also reinforces the importance of supportive and understanding financial advice to navigate these challenges effectively. Sara’s approach underscores her commitment to empowering women by providing them with the tools and knowledge necessary to take charge of their financial futures confidently.

Tailored Financial Planning for Women [06:34]

In this section of the podcast, Sara Gelsheimer delves into how financial planning needs differ between genders, particularly focusing on the distinct approach she takes when advising her primarily female clientele. Sara’s insights reveal the importance of understanding these differences to offer more effective and personalized financial guidance.

Sara begins by pointing out unique financial headwinds for women that must be considered in any comprehensive financial plan. As she notes, women live longer and they generally incur higher medical costs associated with that. Plus they’ve historically made less money than their male counterparts.

Addressing these challenges, Sara emphasizes the tailored strategies she employs to cater to her female clients’ specific needs. She discusses the frequent request from women wanting to know if they are on track with their financial goals, such as having enough for retirement or their children’s education. This contrasts with some male clients who often are more focused on the performance metrics of their investments.

Sara’s financial planning for women involves a more holistic approach, considering not only the financial data, but also the personal circumstances and goals of each client. She explains how this approach is not just about managing money but about ensuring that financial strategies support the clients’ overall life goals. This might include providing reassurance and focusing on long-term planning rather than short-term gains.

Throughout this segment, Sara reinforces the need for financial advice that goes beyond numbers, incorporating an understanding of the client’s life situation, aspirations, and concerns. Her approach highlights the necessity of empathy, customization, and an in-depth understanding of the unique challenges faced by women in financial planning. This tailored advice helps ensure that women are not only informed but also comfortable and confident in their financial decisions, empowering them to take an active role in shaping their financial futures.

Balancing Career and Family as a Working Mom [07:09]

In this segment, we discuss the intricate balance between career and family life. Sara provides a candid look into her own experiences and the strategies she employs to successfully manage her dual roles. As a professional deeply committed to both her career and her family, Sara offers actionable advice for working mothers on how to achieve a fulfilling and manageable life.

For starters, Sara stresses the importance of being present and setting aside quality time with family, which she manages through strategic scheduling and a strong partnership with her husband. Sara also discusses the emotional aspects of balancing these roles, including managing “mom guilt” and fostering a positive discussion about work with her children.

Sara also advocates for the importance of negotiating flexible work arrangements that support both professional and personal responsibilities. She emphasizes coming to these negotiations with a well-thought-out plan, showing how work productivity can be maintained even with adjusted schedules. This segment offers practical tips for women to effectively communicate their needs and secure work conditions that better suit their family life.

Lastly, Sara highlights the importance of delegation and outsourcing certain tasks to enhance family time and overall life satisfaction. She shares her personal decision to delegate home cleaning to focus more on family activities, underscoring the value of prioritizing time spent on meaningful interactions over routine chores.

Together, these insights provide a comprehensive guide for working mothers looking to navigate the complexities of balancing a demanding career with an active family life, emphasizing practical strategies, emotional well-being, and the importance of clear communication in achieving a fulfilling work-life balance.

Financial Planning Strategies for Women Leading Financially [12:37]

Sara emphasizes the foundational belief that while money doesn’t buy happiness, it does enable individuals to pursue their desires and live life on their terms. She strongly advocates for the initial step of any financial plan: conducting a values and goals assessment.

Sara explains the importance of aligning one’s financial strategies with personal values, suggesting the use of tools like vision boards to keep these goals visually and mentally in focus. This practice aids in making informed and motivated financial decisions, reminding individuals why they are saving and what future benefits they are working toward.

Next, Sara discusses the critical examination of inflows and outflows in one’s finances. She advises reviewing past bank and credit card statements to identify non-essential expenses that do not align with established goals.

For those fortunate to have excess cash flow, Sara highlights the importance of prioritizing savings and investment vehicles that best support one’s financial objectives. She’s also a fan of reverse budgeting to simplify financial management, where as long as savings goals are met, the remaining funds can be spent freely without guilt or micromanagement.

Investing is discussed as a cornerstone of financial planning. Sara notes that maintaining a well-thought-out investment plan helps secure a financial future, despite market fluctuations. She also underlines the importance of preparing for worst-case scenarios, particularly for primary breadwinners, by ensuring adequate life and disability insurance.

For women nearing retirement, Sara underscores the need for a clear and detailed vision that includes lifestyle aspirations alongside financial projections. This ensures planning is realistic and aligned with personal values. She also touches on the psychological aspects of financial planning, noting that women often seek to understand the broader impact of their financial decisions on family and community, such as through charitable giving or legacy planning.

Lastly, Sara emphasizes keeping estate planning documents up-to-date to ensure one’s financial legacy is executed as intended, highlighting the importance of regular reviews to adjust plans as life circumstances change. This comprehensive approach not only prepares women for retirement but also safeguards the financial stability of their dependents in unexpected situations.

Integrating Mental Wellness into Financial Planning [19:59]

In this insightful segment, Sara discusses the crucial integration of mental wellness into financial planning. She emphasizes the importance of considering psychological well-being alongside financial health, advocating for a holistic approach to financial advisory services that accounts for the emotional and mental aspects of financial decisions.

Sara discusses the specific ways in which mental wellness can be integrated into financial planning. She suggests that part of this integration involves recognizing when clients are truly ready to make significant financial decisions. Financial stress or emotional distress can cloud judgment, leading to decisions that may not align with long-term goals. As such, financial advisors need to be attuned to their clients’ emotional states and ready to provide support or pause discussions as needed.

Moreover, Sara talks about the proactive steps individuals can take to maintain their mental wellness, which may involve activities that require financial investment, such as regular massages or other forms of self-care. She argues that these expenditures are justifiable if they contribute to one’s overall well-being and ability to function effectively in both personal and financial realms.

Finally, Sara addresses how financial advisors can play a key role in their clients’ mental wellness by fostering an empathetic and understanding environment. She advocates for a financial planning process that is empathetic and responsive, allowing clients to feel understood and supported not only in their financial goals but also in their personal experiences and challenges.

Emerging Financial Trends and Advice for Women [22:00]

In this segment, Sara Gelsheimer explores how emerging financial trends are reshaping the landscape for women who lead financial strategies at home. She emphasizes the importance of financial transparency, structured discussions with partners, and the adoption of flexible work arrangements, which have become increasingly viable due to recent global shifts. Sara advocates for regular “money dates” to ensure both partners are aligned and informed about their financial strategies and decisions.

Sara also highlights the need for comprehensive estate planning, including maintaining detailed records accessible to family members in emergencies, using tools like the estate plan memo. Additionally, she discusses the challenges presented by extended periods when children are out of school, advising that financial planning should account for childcare costs during these times.

Concluding her advice, Sara urges women to be assertive in their financial education and management, encouraging them to ask questions and seek environments where they feel comfortable learning and discussing financial matters. She stresses finding a trustworthy advisor who can make financial concepts approachable and understandable, helping women to build confidence in their financial decision-making. Lastly, Sara calls for documentation and sharing of financial knowledge within households to ensure smooth transitions during emergencies and to foster a collective understanding of financial plans.

These insights aim to empower women to navigate the evolving financial landscape confidently, ensuring they are well-equipped to manage their financial futures effectively.

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