4 Ways Women Can Invest in Other Women
Investing is a deliberate move that everyone needs to take control of their financial future. There is a plethora of investment options that range from stocks, mutual funds, real estate, bonds, and high-yield saving accounts. And with the increase in socially responsible investing, you can also invest in other people. Women can invest in other women but not necessarily gender-restricted.
The investment initiative helps to give room for others to get help while you are also putting your best financial foot forward.
To invest in yourself and in the success and development of other women, consider these four ways.
1. Begin by Investing in Yourself First
The most important aspect of succeeding in anything is to begin. Women who want to invest must have the courage to start out. A lot of women around the globe do not have courage in their investing ability.
Fidelity investment revealed in a survey taking in 2017 that just 9% of women had the thought that they’d do better than men investing.
But the truth about investing is that women who invest often rake in higher returns on their investments, unlike the male counterparts. In 2019, information services company S&P Global revealed that a very low-rated figure of 26% of American women invests in the financial markets. And women who do not invest are often faced with long-term financial consequences.
Women may have to save more for their retirement than men, as a result of longer lifespans and more gaps in work history, even though they do not earn as much as men over their lifetimes. Women of color face an increased situation than their other counterparts, making the wage gap even wider.
Despite the hard bite of these realities, any amount you invest would take you forward than investing nothing, and starting your retirement fund early enough will give you an advantage over other women, and in a position to invest in them.
2. Look for Funds That Women Profit In
Even though funds are different, many women had to put into consideration added considerations such as sexual harassment training, company relationships with minorities and companies owned by women, and fund managers who work with other firms to put an abrupt end to human trafficking.
Women who would rather consider the DIY investing approach can search for mutual funds that women or other marginalized groups can benefit from, and then include them in their portfolio.
A lot of socially-responsible investing funds are classified as harnessing Environmental, Social, and Corporate Governance (ESG) investing factors. Companies with high scores in the social and governance category may signal a company that has equal employment opportunities or diverse leadership boards.
Ethical investors have gained increased options over the years as ESG funds have continued to experience a rise year-in-year-out.
3. Consider A Provider That Makes Investing In Other Women Suitable
There are two key ways you’ll want to decide on making an investment in your future. It is either you seek help or do it yourself. Robo-advisors and other online investment services can help with investing without you having to handle it directly. They can help you maintain an investment portfolio at a much-reduced rate. They provide you with investment advice to help you make smart choices.
Ellevest creates an avenue to invest in companies that supports progress in the leadership of women, impact portfolio option, and also put into consideration women’s longer lifespans and lower average wages when building their portfolios.
Even though Stash may not technically be regarded as a Robo-advisor, it would help you investing mission-driven paths. An instance is the “Women Who Lead” fund that focuses on firms with women that occupy leadership positions.
4. Find A Female Financial Advisor To Work With
If you need help with a financial plan, especially if you have a complex financial life, then you should consider finding a financial advisor.
The U.S. Bureau of Labor Statistics revealed in 2019 that more than 32% of financial advisors were women. And even aside from the fact that women are constantly revealed as stronger investors to their male counterparts, working with female financial advisors has more serious benefits too.
People who identify as females can profit from having advisors with similar views of life and have a good understanding of the issues that confront you. When you work with female advisors, you are also empowering them to advance in a field that has large male players.
You can consider Ellevest with their provision of advisory sessions through their female financial advisors and coaches on their team which nonmembers can purchase when they need to. The XY Planning Network also has a keyword filter where you can include “women” to discover female financial advisors. The network is made up of certified financial planners.