Investing for Women
It is no secret that life for women is getting more and more crazy and chaotic as the years pass. Between work commitments, a social life, and taking care of their family, how do they prioritize their financial goals? When was the last time they reviewed their budget? Are they confident that their money will work for them in the long-term? Are they obtaining their goals? It is possible for women to feel more confidence in their financial future.
Women and men tend to have different challenges, and goals, when it comes to managing money. Women are generally more comfortable asking questions about finances and investments when around fellow women.
THEY SHARE COMMON GOALS AND NEEDS:
- Family
- Lifestyle
- Independence
- Investing
- Retirement
THEY ALSO SHARE COMMON QUESTIONS:
- “Is investing right for me? Where do I start?”
“How do I know if my investments are appropriate for the risks I am willing to take?” - “How do I further diversify my portfolio for greater returns?”
- “Am I taking enough risks? Am I being too conservative in my goals?”
Women and Risk-Aversion
Statistically speaking, women generally tend to outperform men despite their tendency to invest a little more conservatively. The risk aversion technique is called “buy and hold”. This is when one identifies a promising investment, purchases it, and holds it for a long period of time – sometimes despite the current market conditions. While your investments are still generating income, there are different risks attached to this such as:
- It removes smart market timing
- It removes instinct and emotion out of the decision-making process which causes misjudgment of market fluctuations.
Both of these risks lead to a trend of selling low and buying high – a risk that might still generate income but is not proactive in promoting a more significant growth.
Women and the Future of Investing
Whether you are content in the market as you are but have some questions or wish to diversify, or you wish to completely change your approach and technique, I am here for you. As your advisor, I will help you identify your risk tolerance and objectives. I will guide you in making the type of investment decisions that will achieve your goals.
We will:
- Pay attention to asset allocation: figure out goals and then allocate assets accordingly
- Accept that we are unlikely to perfectly time to buy or sell in the market so instead will buy when we can afford to invest and sell when you reach your goa
- Work together to identify the financial goals that are important to you
- Have a written plan that will keep us focused and will help us evaluate where we are in achieving your goals