Idea of the Month

What Women Should Know About Investing

What Women Should Know about Investing

Women typically outlive men by five to seven years, earn less, save less, and are more likely to live in poverty. Recent studies indicate that women are far more likely to work part time or to take several years out of the workforce for child rearing and elder care, thereby reducing their Social Security and pension benefits. As a result, a woman’s savings must last longer and account for a larger proportion of her retirement income.

In order to meet your future financial needs, it is important to start investing today to supplement your income for tomorrow. Remember that it is never too late or too early to start a sound investment plan.

To begin, identify clear goals and establish a plan for your financial future. List and prioritize your goals for one, five, and ten years ahead. You should then make saving and investing a prioritized part of your budget. This means setting aside a regular sum of money each week, before making expenditures, to be invested.

Fear of failure and fear of the unknown keep many women from trying investing, according to a recent national study by the Long Island University’s National Center for Women and Retirement Research. It is natural to be hesitant when you are starting something new. The solution is to educate yourself, so start by learning as much as you can. Seminars, books, tapes, and broadcast programs on finances can all help. The important thing when making any investment decision is to make an educated one.

When choosing a Financial Advisor, keep in mind that you have the option of shopping around. Interview several advisors and ask about their backgrounds, how long they’ve been in the business, how much they charge and whether it’s a fee, commission or combination. If you feel you are being intimidated or patronized, continue to shop around until you find someone you are comfortable with.

While you are interviewing Financial Advisors, they should be learning about your financial past as well. It’s important that they ask you questions about your goals and the risks you’re willing to take to meet these goals.

The important thing is to find an adviser you feel comfortable with. Consider getting a referral, maybe from a friend who has had a good experience, or from a professional organization.

This is for informational purposes only and should not be construed as tax, legal or financial advice.  Consult your tax, legal, or financial advisor regarding your specific situation.