We all know that women are great at managing money. But do they invest? The answer is often "no." According to a study by the Investment Company Institute, fewer women than men own stocks or mutual funds. In fact, just over two-thirds of adult women own any kind of investment account at all, compared with more than three-quarters of men. What's worse is that when we look at investing specifically for retirement purposes—which is essential for most people as they get older—the gap widens even further: only one in five women are actively saving for retirement through their employer or an IRA (individual retirement account), compared with more than half of men.
Women Must Invest.
Women live longer than men, which means they need more resources.
You may have heard that women live longer than men. There's a good reason for this: Women tend to be healthier than men, and they have more longevity in general. According to the CDC, the average life expectancy of a woman is 81; for men it's 76. This means that female retirees need more money than male ones in order to maintain their lifestyles through retirement and old age—or else they will depend on social security benefits alone, which is often not enough to cover basic costs of living (and especially if you're not working during those years of your life).
But the truth is that women are also more likely to live alone in retirement than men. According to the U.S. Department of Housing and Urban Development, 32 percent of elderly female-headed households live alone; only 25 percent of male-headed households do so.
This is partially because women are more likely to outlive their partners, but it's also because men tend to marry younger women and have children earlier in life. This means that many men will pass away before their female partners do—and if you're a woman who lives alone in retirement, this can make things difficult.
Women don't make as much money as men, so it's important for them to take control of their financial future.
Women are underrepresented in the financial industry, and it's time for that to change. According to the U.S. Department of Labor, women earn less than men in nearly every occupation except education. And while women are more educated than ever before, they still earn less money than men with similar levels of education. While many women (and men!) think that it is time for this to change, the reality is that change takes time and women still earn less than men.
Women bear the majority of the burden of making a home and raising children.
When you invest, you're putting money into your future. You're trying to create a better life for yourself and your family. But it's not just about you; it's also about the people who depend on you.
Women bear the majority of the burden of making a home and raising children. For example: Women are more likely to take care of children than men are. Therefore, investing is one way that women can get ahead financially and still take care of their families even if they don't have enough time or energy left over after work or school.
And then there's the fact that women are more likely to be single parents than men are. In fact, a single mother is often seen as the norm rather than an aberration or a tragedy. So if you're a single mom and you want to get ahead financially but working multiple part-time jobs isn't cutting it for you, invest is a must-do.
Women bear the responsibility of caring for their parents as they age.
Women are more likely to be the primary caregiver for their parents and they often outlive their husbands. Because they're responsible for taking care of their parents while also working full-time jobs (or multiple part-time jobs), finding ways to invest money becomes even more important for women than it does for men. And since there isn't any sort of social safety net when it comes to taking care of an older loved one—someone has got those responsibilities whether they want them or not—the need for financial security becomes even greater!
If you’re a woman and you’re wondering how this applies to your finances, consider these statistics:
Women tend to help their aging parents more than men do. According to one study by Merrill Lynch & Co., Inc., female caregivers spend an average of 20 hours per month helping family members with financial matters compared to just 14 hours per month spent by males.
Women are also far more likely than men (17 percent versus 6 percent) to provide caregiving advice free of charge or at no cost whatsoever.
In short, preserving and growing your wealth is critical for women.
Investing can enable you to give back to your community and support causes you believe in
There are many ways that investing can help you give back to your community and support causes you believe in. You might donate some of your money to charity, for example, or invest it in a socially responsible way.
You could also invest in your community by supporting local businesses and organizations, as well as looking out for opportunities to volunteer with them. This will help strengthen both your local economy as well as your relationships with the people around you.
If there is any money left over after paying off debts and expenses, consider donating it towards educating yourself or those close to you about financial literacy matters—including topics such as personal budgeting skills and retirement planning tools like IRAs (Individual Retirement Accounts) and learning how to invest in the stock market. Not only does this give back by helping others learn how best to achieve financial freedom and independence, it also ensures that they won't needlessly suffer from lack of knowledge when dealing with their finances!
It's time for women to stop feeling helpless about money and start controlling their destiny!
Invest in yourself.
Invest in your education
Invest in your children.
Invest in your community.
Invest in causes you care about.
Women Must Invest.
The time for passive women who feel powerless to control their financial future is over. Women should take charge of their money, invest it, and make sure that they have the resources they need in order to live comfortably and enjoy life.
“For women, financial independence is a matter of necessity.”
― Carrie Schwab-Pomerantz, board chair and president of Charles Schwab Foundation
Key: Women Must Invest.
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Nothing in this email is intended to serve as financial or investment advice and you should do your own research and consult with appropriate advisors.