Women’s Worth Part 4 – Investing

Let’s begin this discussion with a simple illustration. Women think of money as a pond, men view it as a river. Women believe that the money they have currently is all they will ever have, men see it as ever replenishing itself. This belief leads women to hold excess dollars in a savings or money market account. We’ve talked already about the fact that women earn less, live longer, and have a smaller Social Security benefit. We have to make up some of that shortfall with growth investments.  Once you have your short-term needs covered, and are looking for retirement dollars, consider this quote from Benjamin Graham, “Successful investing is about managing risk, not avoiding it.”

When it comes to investing, slow and steady wins the race. Don’t be looking for the next hot stock tip, invest in index funds and ETFs. Cost does matter. This past year, I’ve had several clients get on the Robinhood bandwagon investing in penny stocks. What I tell clients is to invest no more than they would take to Las Vegas to gamble. Never gamble with your serious money.

The next thing to consider is asset allocation. There are few times in the stock market when all areas are up or down at the same time. Small-company stocks haven’t done all that well in recent years, but they are experiencing growth currently. Remember that not all stocks are created equally, and there are a lot of different types of stocks. Large company, small company, growth, value, international, emerging markets…and then we move onto bonds.

You can educate yourself and do it by yourself or engage an advisor to assist you.

Investment advisory services offered through Equita Financial Network, Inc. (“Equita”). Equita also markets investment advisory services under the name Next Step Financial. The foregoing content reflects the opinions of the author(s) and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct.  

All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.