Episode 104 

Why Women Should Invest: The Good, the Bad, The Ugly! 

Less than half of the women in the U.S. are investing. Tune in to learn some of the reasons why, and how women can start taking charge and invest in their future.   

Why Women Don’t Invest 

  1. Women believe they don’t have enough income to invest. 

On average, globally, women believe they need roughly $50,000 of disposable income per year before they can begin investing their money. In the U.S. the number jumps to $72,000 of disposable income per year.  

  1. Women believe they lack the knowledge necessary to invest. 

In general, there’s a common misconception that all investments are risky. There are varying degrees of risk, but this doesn’t mean you’re gambling. Being an investment genius and understanding fancy terms isn’t necessary. In fact, the investment industry has made progress in making it easier for anyone to get involved. This is done through online investment platforms or automated investment services.  

The Good, Bad, and Ugly!  

The best time to plant a tree was 20 years ago. The second-best time is today. Women tend to live longer than men. This means you have more time to grow your investments, but remember to start today. The longer you live, the more money you’ll need.  In general, women earn less than men and women spend more time out of the workforce. This combination isn’t ideal, and it’s important to compensate for the differences in investment amounts this creates.  

How to Start Investing  

  • Take advantage of matching 401k contributions if your employer offers this.  
  • Open a retirement account.  
  • Utilize apps and online platforms that make it easy to invest.  
  • Work with a financial planner that can help guide you. 

Traditional gender norms hold sway with large segments of the population which has pushed women out of the role of managing finances. This is especially true for traditional couples. So, if this is your situation, I recommend you start by getting involved in your household’s financial process. No matter how big or small it may seem!  

Notes:  

In this episode, Luis talks about the following and more:  

  • Reasons why women tend to not invest  
  • Factors that benefit women  
  • Disadvantages that work against women  
  • How women can start investing today  

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