Wanted: Single Women to Invest

black-women-entrepreneuers

Financial Advisor Magazine just came in the mail. This month there is an article about attracting more single women as clients. There are two great quotes that I wanted to share with you:

“Women are better investors than men” – Wibberly, CIC Wealth

“80% of men will die married but 80% of women will die single” – Penta BBH, Center for Women & Wealth

If those two quotes aren’t enough to get to start investing, I don’t know what else to do. Those quotes tell us that women are AWESOME at investing and that heterosexual women are going to have a substantial amount of time not married (at least our 20s and ten, fifteen, perhaps 20 years after our partners die). What are you waiting for?

Start investing now. If your job offers you a 401k or 403b (tax benefits and usually matching) start contributing now. Call HR. Now. If you’re worried about how much money is going to start coming out of your check, start by contributing just 1% and increase your contribution percentage a bit every year.

If your job doesn’t offer you a retirement plan, open an Individual Retirement Account (IRA) as soon as possible. Depending on whether you choose traditional or Roth there are tax benefits now or tax benefits later. You won’t get the matching but you will get to take advantage of compound interest.

Not sure where to begin? Find a fee-only advisor and get hopping! If you’re 30 years old and can contribute $415 per month you can build a million dollar nest egg by the time you retire at 67 years old. Can’t contribute that much? No worries. Something is better than nothing. If your nest egg ends up smaller than you’d like, you can partner your investments with your Social Security payments and go live in one of these 8 beautiful countries.

Either way, it’s time to get hopping.

 

Why Women of Color MUST Master Their Money

Life is chess, not checkers. Make smart moves.

If you haven’t read the new study “Lifting as We Climb: Women of Color, Wealth and America’s Future” it’s time you do. One of the most startling discoveries of the study is

For all working-age black women 18 to 64, the financial picture is bleak. Their median household wealth is only $100. Hispanic women in that age group have a median wealth of $120.

Yes, you read that right. Though there are many reasons that these statistics exist I’d like to make mention of a few key points.

We tend to make less to begin with, so it’s vital that we manage what we earn well.

They also are more likely to be employed in jobs and industries — such as service occupations — with lower pay and less access to health insurance. And when their working days are done, they rely most heavily on Social Security because they are less likely to have personal savings, retirement accounts or company pensions. Their Social Security benefits are likely to be lower, too, because of their low earnings.

We can control our reactions to what happens to us and to do that we have to be aware of our options.

The current economic crisis has shown that a person’s wealth affects not only retirement security, but also a person’s ability to handle financial setbacks such as a job loss or a health emergency.

It’s imperative that we:
Start planning ahead
Figure out our net worth
Monitor our credit scores and understand why they matter
Show that we respect ourselves by making good money choices
Make a spending plan
Don’t use quick cash services

At the end of the day, for many reasons, it’s up to many women to make good choices for themselves and their families. We must ask the questions we don’t want to hear the answers to and make the tough choices. Educating yourself about personal finance will help put you in a position of power and you’ll be stronger for it.

Be well.

PEACE