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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.
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Comments
Teach Your Daughters and Yourself NOW!!!
I grew up with 11 siblings and a father raised during the depression. He never talked money, paid cash for everything, and never taught us about money - though he did take us all to the bank and get us a savings account. I will never forget the small blue covered leather book that I would write in what I deposited - though ironically there was little to deposit and that was the extent of our financial education.
On the one hand my father's actions (more than words) taught me that cash was king and in order to only use cash, you had to save it. So with my first job came a 401K plan, and I immediately started saving into it - even 1 or 2 percent of my paycheck. I did it as easily as I did anything...ate, slept and breathed. I didn't think about it. I was nineteen.
If you are not saving, start to and make it a habit...follow the old rule -"pay yourself first"...then educate yourself and your kids - boys and girls so they too make it a habit and not a chore.
Times have been really tough for everyone, me included. I thank my dad and God that he silently taught me those lessons. It has taken care of me in the hard times.
Bernadette Boas