Why Should Women Focus on Investing?
investing-my-money | Read Time: 3 minutes
By Ellen T. Jordan, CFP® | Published: June 2023
Many of us know how to budget, how to be prudent consumers, and we’re smart, but why don’t we invest as much as we save? A Black Rock 2016 survey discovered that 71% of women keep their assets in checking and savings accounts, or under the bed, or anywhere but an investment account.1 A 2021 CNBC survey found that roughly 50% of Black and Hispanic U.S. adults (men and women) were not invested in stocks, bonds, mutual funds, real estate, or cryptocurrency compared to 32% of Asians and 28% of whites not being invested. And when broken down even further by race and gender, 59% of Black women, 48% of Hispanic women, and 34% of white women were not invested in any of the (other-than-cash investments listed).2
When asked why they weren’t investing, the women’s answers varied from not knowing enough about investing or investments to working toward financial stability before considering any potential losses that may occur when investing.2 However, that’s a big misconception – you don’t need to be an expert and you don’t need a lot of money to begin investing. Today, plenty of investment tools and resources, including Fintech services, can help you invest with just a few dollars.
Here are three reasons why women should start investing:
1. To Help Reach Your Financial Goals
Working to define your financial goals and growing your own personal wealth can help you reach those goals instead of putting them off. Goals such as going back to school, purchasing or renovating your home, taking a vacation and saving for retirement can be reached with a financial plan that includes investing.
2. To Achieve Financial Equality
Accumulating investment assets can help you feel a sense of equality and independence. These days we are all hearing about the “gender wage gap,” the “wealth gap” or, of course, the “pink tax,” which may cause you to feel left behind. Investing is a way for us to earn as much as men and obtain financial equality, power and flexibility to consider leaving an unfulfilling job or a difficult personal relationship or situation.
3. To Save for Retirement
Women earn 83 cents for every dollar compared to men; women tend to leave the workforce to care for children or aging parents more often than their male counterparts; and women tend to outlive men on average of five to six years, so our retirement savings need to last longer.3,4 Many employers offer company-sponsored plans such as 401(k)s, 403(b)s, or similar types of plans with company matching for additional help. Investing in assets that are intended to grow over time can help outlast and exceed these statistics.
Begin Investing Today
Leverage your intelligence and prudent abilities to establish an investment strategy that is right for you. Research shows that when women invest, our innate qualities can give us an edge on the market because we tend to be more risk-averse, not taking aggressive bets, to obtain smaller more consistent wins. Make investing a priority by starting now with an investment advisor you can trust because she understands your financial challenges, helps with your life priority plan (budget and financial planning), and gives you stock market insight and investment fundamentals as you grow and develop together.
1 Black Rock Annual Global Investor Pulse Survey American Women Feeling Better about Their Financial Futures but Keen Focus on Day-to-Day Finances May Deter Longer-Term Financial Goals March 7, 2016
2 CNBC/Momentive Invest in You survey August 24, 2021
3 Published Census Bureau – US Government Accountability Office December 2022
4 CAP Fact sheet: The State of Women in the Labor Market in 2023, Feb 6, 2023
About the Author – Ellen T. Jordan
Ellen T. Jordan is an investment advisor providing comprehensive financial planning services to clients of Bryn Mawr Trust. She works collaboratively with all divisions of the Bank to ensure that each client’s financial needs are fully addressed and met. Ellen is a CERTIFIED FINANCIAL PLANNER™ professional.
This communication is provided by Bryn Mawr Trust for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. No portion of this commentary is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in this report is derived from sources that Bryn Mawr Trust believes to be reliable; however, Bryn Mawr Trust does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.
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