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As CEO and founder of Ellevest Sallie Krawcheck wisely pointed out, “Nothing bad happens when women have more money.” In fact, according to UN Women, only wonderful things have been known to happen when women have more access to money:
Economies grow! Women’s economic empowerment boosts productivity, increases economic diversification, and income equality.
Companies grow! Companies greatly benefit from increased employment and leadership opportunities for women, which is shown to increase organizational effectiveness and growth.
However, “financial feminism” isn’t just about increasing wages and financial inclusion – it’s also about retaining that wealth once it’s been earned.
As of January 2022, “about 50% of women ages 55 to 66 have no personal retirement savings, compared to 47% of men.”
This is not only alarming because women statistically earn less than men over time, but also because women typically live longer than men. That means planning for retirement, even if it’s seeming far off in the future, is so important for women.
3 Top Savings and Investing Tips for Women
1. When it comes to investing, the earlier the better because the interest from your investment savings compounds over time.
For example, this report from J.P. Morgan Asset Management, shows the difference between what is saved in an investment account at age 65 between someone who started to save $200 a month at age 25 versus at age 35.
The above example is for illustrative purposes only and not indicative of any investment.
Source: J.P. Morgan Asset Management, Long-Term Capital Market Assumptions. Compounding is the increasing value of
assets due to investment return earned on both principal and prior investment gains.
2. Saving and investing consistently are just as important.
Invest whatever you can each month. Even if you can only start with $50 a month, doing so can really add up over time.
The same chart shows how much more a consistent saver has in their investment account at age 65 vs someone who invested some money just once.
3. Save for retirement even if you’re not working.
If you’re married and staying home to care for a child or a loved one or take a break from the workforce for another reason, you can still save for retirement with a spousal IRA.
Looking for Help? Consider Working with a Female Financial Advisor
Of course, I’m biased, but in my interactions with other female financial advisors, I’ve noticed that many of us don’t shy away from focusing on the feelings that surround our clients’ financial lives. Money brings a lot of emotion to the surface, whether because of uncertainty, feeling ignorant, or feeling bad about past money mistakes. Empathizing and understanding help us better connect people’s money to what’s most important in life, which can lead to a more complete financial picture.
Most female advisors make sure to educate their clients about each facet of their money life with easy-to-understand terms and without jargon. Perhaps this is because many of us don’t have an ego or feel the need to come to the client's table to prove we’re the smartest person in the room.
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Disclosures
No investment strategy assures success or protects against loss. Investing involves risk, including the loss of principal. The information in this post is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision.