September 6, 2011
Invest Like a Girl?
Stereotypes abound about women not being good with money. But the stats show otherwise. Even businessmen bigwigs are catching on and cashing in, as evidenced by books like Warren Buffett Invests Like a Girl.
Whether it’s because we tend to do more thorough research, take less financial risks or stick to effective strategies, reports show women are simply better investors (and hedge fund managers too).
So, how can more women invest – with success?
“Take advantage of company retirement plans, look into SEP IRAs or residual 401(k)s if you’re a small-business owner, and don’t have more than 15 percent of your portfolio in any one particular stock,” Emily
Sanders, president and CEO of Sanders Financial Management, tells PINK.
Sanders says improving financial literacy through investment books and the Wall Street Journal will help you maintain an active investment role.
She adds, “avoid investments that seem too good to be true, those pitched on the Internet by strangers, and resist putting inherited money into a joint account with your spouse.” Plus, going by a friend's or trusted colleague's recommendations and paying attention to your “gut instinct” are vital when deciding where to invest.
Want more? If you have yet to take control of your finances, Women’s Media suggests seeking professional financial advice, not using your 401(k) as an in-and-out fund and writing down a detailed financial plan.
Bonus PINK Link: For more on investing, check out these five dos and don’ts.
By Caroline Cox
"Invest a few moments in thinking. It will pay good interest." Unknown
*Supporting images from FreeDigitalPhotos.net, digitalart, scottchan and Pixomar.