Women have all the traits, characteristics and attributes that have led us to be history-makers and positioned us to be extraordinary trendsetters in years to come. Regardless of our individual paths, these qualities have positioned us to be excellent investors, and we are! In 2014, returns for women investors outpaced their male peers by an average of .4 percent. The trend did not stop there, as women have outpaced men in years past and since, generating returns up to 1 percent higher on average according to both the Motley Fool and Kiplinger.
However, that same research summary from Motley Fool indicates only 21 percent of women are willing to invest in stocks and only 52 percent of women feel confident managing their investments compared to 68 percent of men. If women are excellent investors and (ahem) have been statistically better at it than men, why aren’t we doing more of it?
Lower wages, lack of confidence and lack of time to devote to research are just a few of the factors that play into our lag in investing. The reality is that with our life expectancy being about 4-5 years longer than men, we need our savings to last well into our golden years. For this reason, even married and partnered women who choose to delegate these tasks to their significant other should know how to manage any investment funds should their spouse or significant other pass on before them.
Here are a few quick tips that I share with my clients to hopefully motivate you to become interested and invested:
Find a financial partner. A financial advisor or planner can reduce your time spent on research and reviews. They will be your ally and help you stay the course when times get tough, reminding you of your long-term financial goals.
“Time in the market beats timing the market.” Start early and let compounding work for you. It can take less money than you think to get started and into the habit of investing.
Mind your risk tolerance. It is important to take on enough risk to have the opportunity to grow and keep up with inflation, but it is unnecessary to cause yourself sleepless nights. Remember, a string of good or decent returns can be better than one great return.
Women have proven they are capable when it comes to investing. If we can overcome uncertainty with research and take time for solid investment advice, we stand to accumulate a great amount wealth for our future.
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