Many women are more involved with their finances now, than compared to a few short years ago. But, are they getting the most out of their investment or investing in line with their life stage? To take full advantage of the opportunities in the financial markets and ensure that your money matters are sound today and tomorrow, it is important to take even greater control of your financial future.
Financial security has become a top priority among women. And, security about any topic is rooted in confidence and knowledge. Part of becoming a
savvy investor is making a commitment to learn to learn about investment basics and increasing your ability to confidently manage your finances.
Be involved in your money matters
When it comes to household responsibilities, many couples find it easier and more productive to divide and conquer. This may be a sound practice
for household chores, but it is not a strategy that should be followed when finances are concerned. It is more important for both spouses to be equally
involved in all joint financial discussions and decisions.
Develop the ability to manage your own assets
There is a 90% likelihood that a woman will be financially self-reliant at some point in her life due to divorce, becoming a widow, or choosing to marry later in life or not at all.*
Do your homework
Successful investors research option and thoroughly understand what they are buying. Women are responsible for most of the consumer purchases
in the U.S. This shows that women are generally educated and careful consumers, which can make them savvy investors, too.
Put your needs first
If you are like most women, you spend a good amount of time taking care of others – and that sometimes means setting our own needs aside. But,
investing for your own retirement is a necessity that you cannot afford to put off.
Step outside your comfort zone
An important part of investing is to identify the amount of risk you are comfortable with. When it comes to their investments, women tend to be less willing to accept risk and generally gravitate toward ‘safer’ investments. Following the strategy could leave you more susceptible to the long-term effects of inflation which could make it more difficult to achieve your financial goals. While no investment should keep you awake at night, considering options that carry slightly more risk than you build a strong financial foundation. Your financial professional can help identify appropriate options that will continue to support your goals.
*Wise Women Money Quiz: How Money Wise Are You? Cynthia Fick, 2011
Valerie P. Kaiser, CFP®
625 Elden Street. Suite 203 Herndon, VA 20170