Good evening Women Supporting Women,
Happy Monday to you all!!!! I hope you had a great weekend. I spent my weekend with close friends and family. These are the things that make my days complete. Always be around people who are good for your soul. You will be glad you did!!
This week, we will continue our 5 Things Every Woman Should Know series, with Investing.
Here are a few tips to get you started on the path to investing.
Women are expected to control two-thirds of U.S. private wealth by 2020 (1). And many of these women will be self-made. Are you ready to stake your claim in this private wealth shift? How and where you invest matter. So whether you are a student investing gifts of cash, a professional in your peak earning years, or a fifty-something-year old with retirement on the horizon, know the facts.
It’s never too early, or too late, for prudent investing. Here are a few points to consider:
1. Cash reserves – Prudent investing should be viewed as a long-term strategy for building, protecting and transferring wealth in order to meet your financial goals. Put time on your side. Make certain you have enough cash to cover several months of expenses, in the event of an unexpected expense or loss of salary, before you begin investing. That way you won’t need to liquidate your investments earlier than planned. And they’ll have time to do what you intended.
2. Investment choices – There are a plethora of investment accounts, options, and strategies available. Whether you invest through an employer’s plan, work with an investment advisor, or go it alone, take the time to understand the fees, risks, volatility, and liquidity associated with each.
3. Investment strategies – Regularly assess your short- and long-term financial needs, investable income, risk tolerance, and time horizon. This information will help you develop and maintain an investment strategy with the appropriate asset allocation, asset yield and maturity dates (if applicable), and volatility. It will help you establish parameters around when it is time to liquidate certain assets, as well.
4. Employer-sponsored plans – Employee contributions to a 401(k), 403(b), Thrift Savings Plan, or other employer-sponsored retirement plan are made with pre-tax dollars, and earnings grow tax-deferred. Also, some employers match their employees’ retirement plan contributions. The tax efficiency and company match make employer-sponsored plans an attractive option for retirement planning. So contribute the maximum allowed to a qualified plan before opening a retirement plan outside of work.
5. Investment advisors – When selecting a professional to assist you, consider the investment advisor’s practice, relative to your unique needs. Is she hands on? Does he offer a full suite of products and services to help you accomplish a myriad of short- and long-term goals: asset growth, income protection, college saving, retirement and estate planning? Does she have experience addressing any challenges you may have as a single mother, business owner, divorcee, widow, etc.?
Data Collected From:
1 “Financial Concerns of Women,” BMO Wealth Institute, March 2015.
If you have any additional questions, you can post here or reach out to me via email at: email@example.com
As always, thank you for reading and have a blessed week.
Changing the lives in our communities….one family at a time