As a Certified Financial Planner, with over 20 years of experience in financial services, I would like to share obstacles women face when it comes to their wealth creation.
- One — women live longer and must take long-term care needs into consideration.
- Two — many women face a gap in annual income compared to their significant other and some outlive their partner (single mothers may also face unique challenges).
There is potential for women to close the gender pay gap through investing in order to gain and outperform men in long-term investing. If women are earning less, investing less, and accumulating less – saving money simply won’t provide the financial freedom that they desire. It is never too late to start investing. Here are some tips on how you can reach your goals — and how Libro can help you.
Invest — Not Just Save
A savings account is an excellent and necessary tool, it allows for short-term financial goals (three to four years or less). Your money is safe and accessible.
In comparison to savings accounts, investing builds your nest egg. While it may be a higher risk such as mutual funds, the stock market or income-producing assets like a rental property, they can help generate much more substantial returns over time. Being able to balance and diversify investing can help mitigate some risks associated with high-risk and high-volatile investments and can help maximize opportunities to invest. Encouraging you to look beyond a savings account for your future.
Know Your Goals and Write Them Down
Write down all goals, small and large, that you want personally and financially. This will help determine what competing priorities you want to invest in. These goals can be anything from saving money for a big purchase, a dream vacation, or investing in your child’s education. This creates a road map for your goals that can help target your investment strategy and be able to adjust while staying on track.
In some cases, men may care about stock tips and how to take advantage of market trends. On the other hand, women may be more concerned about how not to burden their kids as they age and how to care for elderly parents. Deciding what is important to you will help you stay on track and ultimately reach your goals.
Invest with Confidence
Historically, women tend to ask questions, research and seek support rather than follow the latest stock trends. Working with a professional can give you the confidence to make these big financial decisions. Understanding your risk tolerance can help you choose the right long-term investments — some investors are likely to jump ship when they see a drop in the market. This can lead to losing potential gains. Improving personal financial literacy helps understand your risk tolerance while determining what type of investor you are.
Pick the Right Coach
When it comes to financial planners and investment advice, finding the right match is important. Discovering a Coach that you trust and have confidence in is a must. At Libro Credit Union, we have expertise working with Owners comparable to you that will listen to your individual goals and come up with solutions to help you achieve them.
Why work with a Libro Coach? You matter to us!
We care about the community you live in because we live here too. Connect with a Coach today!