Traditionally, women have shied away from investing, leaving this task to their male counterparts or neglecting it altogether. However, as the 21st century has ramped up, investors are finding that more and more women are getting serious about investing their money in stocks, bonds, and mutual funds.
Whether you’re a 20-something just getting started with your career or you’re in your 50s and are interested in investing money for retirement in 20 years, investing can be scary. Studies have shown that women tend to take fewer risks with their money than men, but that isn’t necessarily a bad thing. Safe investment strategies may not earn you a windfall overnight, but that’s not really the point, is it? The point is to accumulate wealth over time and be able to live comfortably.
So, you’re a woman who is ready to start investing, right? Here are some tips that will help you develop an impressive financial portfolio.
Work with a Financial PlannerThere are plenty of do-it-yourself, online brokerage services available. While these can be less intimidating that walking into an office building and feeling small behind an advisor’s big desk, you won’t get the personal attention that you deserve. Financial planners have experience that will benefit you in the long-term.
When working with a financial planner, don’t make gender bias choices. It’s perceived by many people, including smart women, that male financial planners are more knowledgeable and successful at helping their clients achieve financial freedom. This is a perception that needs to change, according to financial experts at U.S. News and World Report. Women are short-changing themselves by not broadening their horizons and accepting that women can be just as savvy financial planners as men.
Educate Yourself about Your Financial OptionsEven though you may be working with a financial planner, you should still educate yourself about the investments you’re making. The majority of women choose not to invest and miss out on substantial wealth because they lack confidence. A lack of confidence isn’t a flaw. It’s merely a symptom of being unknowledgeable about a complex subject matter. If you’re not sure where to start, ask your financial advisor for suggestions for reading materials or even classes that you can take to learn how to be a confident investor.
Choose a Financial BuddyYou’ve heard the term “gym buddy,” right? But, what do you think of the term “financial buddy”? If you’re married or in a long-term, committed relationship, this person could be your spouse or partner, but it doesn’t have to be. The whole idea of a financial buddy is someone who is encouraging and inspiring, cheering you on to reach your financial goals. You and your financial buddy keep each other accountable for the money you’re spending and, most importantly, the money you’re investing. When people feel support in whatever they’re doing, they are more likely to succeed.
Investing for women is something that an increasingly large number of financial firms are becoming serious about and devoting specific programs to this clientele. Don’t be afraid to put your money into mutual funds, stocks, bonds, or other investment products. What you may want to fear is what will happen to your financial security if you don’t take this path.