Let's talk money.


In the month of March, we commemorate the historical contributions of women by celebrating National Women’s History Month. During this time, you might be graced with the names of dynamic women like Author and Writer, Maya Angelou or Humanitarian and US First Lady, Eleanor Roosevelt; activist and political figure, Margaret Sanger; Educator, Journalist, Author and Screenwriter, Laura Esquivel or First Lady, Abigail Adams to name a few. If I may, I’d like to take a moment to speak on Abigail Adams. A little known fact about her is that she is America’s first documented female investor! Talk about a trailblazer. Having to manage the financial affairs of her household while her husband was in the war, she used her shrewd business sense to start investing in government bonds, thus in the long run, creating more wealth for her family.

This brings me to my next point of how savvy women are with money. If you look at the proverbial economy numbers with a closer eye, one can realize that women create, control, and influence an enormous amount of wealth around the world. According to a Harvard Business Review article, in the United States alone, “women exercise decision-making power over $11.2 trillion, a whopping 39% of the nation’s investable assets”. This is astounding, but not unbelievable. However, with such spending and decision making power, there is a dearth in women who actually invest. The same article further stated that in “a sample of women in the United States, United Kingdom, India, China, Hong Kong, and Singapore with personal income of at least $100,000 or investable assets of $500,000 or more, more than half (53%) of the women surveyed do not have financial advisors.” Why is that? The reasons I could share may be totally speculative, but one point this article brought out is that women might simply be misunderstood by the financial services industry. At the time of this article’s release, in the US alone, about half of its female wealth creators reported not having an advisor. An untapped market we are indeed. Now while there have been a few financial services that have since been established for the sole purpose of teaching the modern woman how to invest; there is still a vast amount of women who aren’t investing.

The last quote I’ll draw from this article is “Women differ from men in how they perceive wealth. They see wealth as a source of financial security and independence, just as men do. But once these priorities are met, women look to leverage their wealth to provide a larger basket of goods for themselves, their families, and, importantly, for society at large.” As a modern woman, I couldn’t agree more and if this speaks to you as well, I’d like to share from our advisor’s reasons why it is important to invest if you want those fierce finances for today and all of the tomorrow’s to come.

Why should we invest?

1. Investing will allow you the opportunity to have more options in the future. The existence of having financial options is the equivalent of financial freedom. If you invest for multiple goals, short and long term, you are able to live the life you want while simultaneously meeting your basic needs.

2. Investing allows your money to grow on par with the times. You can be a good saver, which women are typically better at than men, but saving without investing is doing only half of its true potential. Think of inflation. What $1000 can buy you today won’t be able to have the same buying power in 5 or 10 years. The compound interest you gain with investing far surpasses the small credit interest your bank gives you monthly on your saving. Saving is a very good step but not complete without investing.

3. Think of retirement. Do you think Social Security will be enough for you or if it will still be around by the time you retire? By 2034, the trust fund reserves are projected to become depleted and payroll taxes collected will only pay about .79 cents for each dollar of scheduled benefits. With that said, in the best-case scenario, if Social Security will still be around, it’s still best to be prepared to have some type of other income to supplement. The advisors at InvestEd think that everyone should rely on 2-3 sources of income for their retirement.

4. Investing is when money works for you! It is not the same when you invest in something like real estate or are doing individual stock picking where you have to closely monitor your investments and do things on your own. Smart investing, like working with a fiduciary advisor to create a long term diversified portfolio allows you the freedom to invest and let it work its magic on its own.

Today’s modern women are leading households, starting and running successful businesses, securing degrees, supporting start-ups and creating streams of income based off of their own passions or fulling the needs they see within their communities. With so much fierceness occurring in the sphere of this generation’s HERstory, we at InvestEd implore all the women out there to solidify their continued prosperity by investing in themselves today for a legacy of financial freedom for you and those you may support in the long run. Many of you are already on the right track with your finances and creating stability, but we’d love to see women investing just as much as men, if not edging them out in the years to come. If you ready, we’re here for you and understand your needs. Call, stop in or schedule a time to talk with our advisors anytime.

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