What real life lessons can we learn from Barbie?

Jessica Amodio
Partner

It would be fair to say that Barbia-mania has taken hold since the movie was released in the UK in July. There's Barbie clothes, Barbie make-up, Barbie toys, all hitting the high street. So I thought, why not jump on the bandwagon and see what we can learn from Barbie and her 'dream life'.

She's been around since 1959 and had countless careers. She has her own house, a property portfolio, a wardrobe to die for, and it seems complete financial independence. So, what advice do I think I could give Barbie, to make even more of her goals come true?

Pensions

Barbie has accumulated a larger career portfolio in her time. She has been a fashion model, freelancer, pilot, doctor, and a stay at home Barbie. Amoungst many more. Whether these were high earning jobs, or low earning jobs, it is likely she has joined several pension schemes during her time working. At age 64 now, she really needs to think about tracking these pensions down. The next consideration would be whether these pensions should be consolidated, i.e. moved into one 'pot'. This makes decumulation in retirement much easier. However, she would have to research the fees associated with this, and whether any of the pensions provide guarantees.

Insurance

It is one of the key themes in the movie, that Barbie is worried about dying. Nobody likes to think about their own mortality, but insurance could be considered in almost all cases. We know she doesn't have children (pregnant Barbie was discontinued) but she does have Ken. Ken doesn't have a career like Barbie. His main role is to 'Beach'. Therefore, if Barbie were to die, it is likely that Ken would find himself in a difficult situation. If Barbie has a mortgage, she would definately need to consider life insurance. It is unlikely Ken could sustain a mortgage based on his unemployed status, so having a payout which could clear this would be extremely beneficial.

Being the main breadwinner, Barbie should also consider some form of income protection should she fall ill. This would ensure that she had enough income coming in on a monthly basis to cover her outgoings, if she was unable to work either short or long term.

Will

Barbie has considerable wealth, so if she hasn't thought about making a Will already, she should do so as a matter of urgency. If she dies without a Will, her assets may not pass to the beneficiaries she would like. The main problem would be her relationship with Ken, and the fact that they are not married. In the eyes of the law, a long term relationship does not give you the same rights as being married. Her entire estate would instead pass down the laws of intestacy, and Ken would not be entitled to receive anything. If Barbie would like to make provisions for her long term partner Ken, then she would need to name him specifically in her Will.

Investments

There is one part of the movie where a Barbie pretends she keeps all her cash in a checking account because she 'doesn't know anything about investing'. There isn't a financial adviser or financial planner Barbie in Barbieland, so where would Barbie be getting her financial advice.

She doesn't need to have full scale knowledge on the intricacies of investing. However, everybody should aim to have some common knowledge on compound interest, costs, and tax efficient products.

There's lots of evidence about the gender pay gap and gender pensions gap. It's great to know that younger women are now contributing more so to pensions. However, their investing confidence is still very low. Barbie needs to be encouraging the younger Barbies to prioritise putting money away for themselves as part of their monthly routine, by utilising savings and/or pensions.

Finally, once Barbie has all the above in order, she can start thinking about retirement. She needs to ensure her state pension forecast is full, and that she has enough liquid assets to provide her with income in retirement. Then perhaps she can relax a little, and spend more time at the beach with Ken.

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice. All investments can fall as well as rise in value, so you could get back less than you invest.