Recently, it has become clear that more and more women need to do more with their money.
For decades, we have been hearing about the "investment gap" between men and women. While it still exists, a new survey by Fidelity Investments found that 72 percent of women are ready to invest more in their savings in the coming months and take bolder measures.
"Women are the CFOs for their families," said Kathy Murphy, president of Personal Investment in Fidelity. "They pay the bills, they make 80 percent of the purchasing decisions. It (the investment) could be part of it."
It is important to invest more savings. Forty-four percent of women polled for the company's "2018 Woman and Investment Study" currently spend their money working in the market beyond just retirement accounts - compared to 59 percent of men - one in all women. More than a third of $ 50,000 or more still pays minimal interest on check and savings accounts. And those third or more persons who have invested outside the Company 401 (k) plans.
But what if even $ 20,000 of that cash is invested in a conservative portfolio mix? In five years, in a typical market, the money in a basic savings account can grow from $ 80 to $ 5,733 (and $ 2,961 on a regular five-year CD).
Millennial women seem to be taking those numbers very seriously, which leads to optimism in the report.
Forty-eight percent of them are already investing their cash, while nearly 40 percent are in Baby Boomers and Gene Jerseys.
"This is the first time in almost a decade that we have done this research, and we see millennial women moving forward," Murphy said.
Don’t get me wrong: no one is saying that people - men or women - should not have at least enough cash in savings to cover three to six months' worth of living expenses. This is a basic principle of financial advisors. And Murphy argues that women who invest will become "great" for this simple reason: they will come up with a long-term plan based on their or their family goals, and then they will return to invest instead of failing their investments. The tendency to make a mistake in trying the market on time.
Many online tools can help women manage their financial lives better. For example, Fidelity offers a free, 10-minute "Financial Wellness" check-up that is the first step in developing such a plan, and the company has just launched a new "Demand More" site. It is designed specifically for individuals with two X chromosomes. , The second is also free, contains personal stories of a 54-year-old woman with two grown children who "resumed her financial status" after divorce.
On why women lag behind men in investing, Murphy has his theory: "Seventy-five percent associate it with choosing stocks. But it's not about that. It's about financial planning and adherence to it." Is. "
You are hereby granted a world-wide non-exclusive right to freely make copies, distribute, publish and/or provide links to this content so long as attribution is made to NewsUSA in the byline or otherwise and no material changes are made to the content.
The included photos may or may not be used, but in no case can they be used without the accompanying article.
You must be logged in to post a comment.