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But when women invest, we're taking steps toward building wealth and bridging the gap. So I talked with Shinobu Hindert, author of Investing Is Your Superpower, to get her take on why investing is a little bit different for women and what we can do about it.
I love Hindert's book because, first of all, she really knows her sh*t. She's a Certified Financial Planner who worked as a financial advisor at Smith Barney and Fidelity Investments before starting her own company. If that sounds kind of intimidating, don't worry — her book reads more like notes from your smart friend than a jargon-heavy finance textbook (thank goodness). If you're super curious about investing or just want to expand your personal finance knowledge, it's definitely worth a read.
Here are seven things that women especially need to know about investing:
1.If you're saving without investing, you may actually be losing money.
2.And you don't have to wait until *all* your debt is paid off to start investing.
3.On average, women who invest actually get better results than men. That's why Hindert calls it our superpower.
4.And the skills that you're already using at work and at home are the exact same skills you'll rely on as an investor.
5.Many factors keep women out of the market, including patronizing behavior from men. But we can avoid that issue by working with female advisors and planners.
6.There is a huuuge difference between growing your money in the long term and day-trading meme stocks.
7.Setting regular money dates with a friend or partner can be a great way to stay on track with your goals.
At the end of the day, Hindert wants women to see how our money and our lives are really intertwined. "Know that every life goal you have is actually a financial goal," she says.
So if instead of fearing our finances we can look at our money as a tool for building the lives we want, that's a huge step in the right direction.
Are you investing yet? Share why or why not in the comments, and check out the rest of our personal finance posts for more stories about life and money.
According to Ramsey's tweet, investing $100 per month for 40 years gives you an account value of $1,176,000. Ramsey's assumptions include a 12% annual rate of return, which some critics have labeled as optimistic given that the long-term average annual return of the S&P 500 index is closer to 10%.
Trade-offs must be weighed and evaluated, and the costs of any investment must be contextualized. To help with this conversation, I like to frame fund expenses in terms of what I call the Four C's of Investment Costs: Capacity, Craftsmanship, Complexity, and Contribution.
Take informed decision. Whether you decide to invest, sell or hold - always make sure that you know why you are taking the decision. Conduct proper research to ensure that your decisions are reasonable. Your investment decisions must be data-driven and not sentiment- or reputation-driven.
Investing $1,000 a month for 20 years would leave you with around $687,306. The specific amount you end up with depends on your returns -- the S&P 500 has averaged 10% returns over the last 50 years. The more you invest (and the earlier), the more you can take advantage of compound growth.
How much money do you have to invest? How much money can you afford to lose? Will you operate alone or will you have partners? Will you need financing?
This sort of five percent rule is a yardstick to help investors with diversification and risk management. Using this strategy, no more than 1/20th of an investor's portfolio would be tied to any single security. This protects against material losses should that single company perform poorly or become insolvent.
Introduction: My name is Msgr. Refugio Daniel, I am a fine, precious, encouraging, calm, glamorous, vivacious, friendly person who loves writing and wants to share my knowledge and understanding with you.
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