How do you envision your future? Are you relaxing with family and friends, starting a small business, traveling the world – A little bit of everything? No matter what your dream is, you’ll need a plan to get there. Investing can empower you to live your life fulfilled.
For some women, financial fears can be paralyzing. But, there is growing evidence that women actually make for better investors.1 Don’t let fear hold you back. A conversation between you and a trusted financial professional can help you examine the challenges ahead and create a plan. Until then, here are a few ways to help you manage financial anxiety and get started.
Develop a Strategy
Developing a financial strategy can seem daunting, but it doesn’t have to be. Think about how you envision your ideal future. Do you have debt you want to pay off, a home you’d like to buy, or higher education you want to fund for yourself or a loved one? Prioritize your goals and start building your savings strategy from there.
Regardless of your financial situation, one of the best things you can do for your future self is to start moving toward your goals today. Get in the habit of paying yourself first and make investing a part of each paycheck a consistent habit (automatic withdrawals are great for this). Even if you start small, you can always increase your contributions as your financial situation changes. Every little bit helps. Thanks to the magic of compound interest, time is one of the best assets you have when investing.
Build a Team
Wise advice from a trusted professional can save you time and keep you on track to achieve your investment and retirement goals. Regular check-ins can help you adjust your strategy, especially if there’s been a change to your goals, dreams, or life situation. By extension, a wider support team comprised of estate, tax, and legal professionals can work in conjunction with your financial professional to help you pursue the financial future you have in mind, no matter what life throws your way.
Never Stop Learning
It’s never too late to become an empowered and engaged investor. Adopt the mindset of a learner. Stay curious and keep having conversations about wealth management, financial strategies, and investing. Take advantage of the resources available to you to learn everything you can. And most importantly, don’t be afraid to ask questions of the experts in your life. Your financial professional’s goal is to help you build the financial life you envision and the future you deserve.
Invest like a Woman
It’s a common misconception that women prefer a “hands-off” approach to their financial lives, even though the numbers don’t support this stereotype. Rather than being timid with money, today’s women investors are taking appropriate levels of risk. Women may trade less than men, but research shows that when it comes to investing, men tend to be overconfident in their abilities. Specifically, men trade 45% more than women, and this tends to reduce their overall net returns (an effect that is compounded by the higher taxes, commissions, and fees that may result from trading).1 What does it mean to invest like a woman? It means taking a healthy and balanced approach and investing regularly for the long term.
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Past performance does not guarantee future results.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.