Women and Investing
Over the last hundred years, women have increasingly engaged in tasks that were previously predominantly male-driven. Today, women have more opportunities and responsibilities.
Taking Charge
Women often take the lead role in balancing family, friends, home obligations, health and wellness on top of their career. However, one area where women seem to have chosen to take a step back is investing. Unlike the day to day finances of budgets and bills, investing is focused more on the future. Whether it be saving for retirement, college, or possibly a large purchase, it seems women tend to be less hands on. While there is nothing wrong with letting your partner help or even oversee any aspect of day to day life, the biggest concern is that 90% of women will at some point have to manage their finances and investments on their own due to being single, divorced or widowed.(1)
A study conducted by Kelton, a leading global insights firm, found that while 82% of women are confident managing their day-to-day budgeting, their confidence slips when it comes to longer-term financial planning. Furthermore, they found that only 37% of women feel confident planning for retirement financial needs and only 28% are confident in selecting the correct financial investments. (2) Making sure that women are more involved in financial planning is even more important today as women are becoming a more significant portion of the workforce. The Department of Labor statistics show that 57% of women were in the workforce in 2016 compared to just 46% in 1995. This means that women will need to be more engaged, ensuring they take full advantage of their retirement benefits through work to secure their financial future.
Start Small, Invest Early
Some obstacles holding women back from being more engaged are that they believe it’s not the right stage in life for them to invest, they don’t have enough money, or they simply don’t have enough time to dedicate to it.
Investing can seem overwhelming when looking at the big picture but don’t take on too much at once. I would encourage you to dedicate just one hour annually to meeting with a financial professional. One of the most essential financial planning concepts is the power of investing early and consistently throughout your lifetime. This can lead to natural wealth accumulation, but it is impossible without taking the first steps to set and implement goals. Most women wouldn’t try to navigate complex health issues without the help of a medical professional. Likewise, seeking an investment professional can help you understand the basics of investing to get started. Women, let’s take a step forward and secure our financial future.
1. “Women in the Labor Force: A Databook,” U.S. Bureau of Labor Statistics, 2012.
2. “Money Fit Women Study: Executive Summary,” Fidelity Investments, 2015. (Study conducted by Kelton, 2014.)
The content of this blog is for informational purposes only and should not be construed as investment, tax, or estate planning advice. Skyline Advisors, Inc. is an SEC Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where representatives of Skyline Advisors, Inc. are properly licensed or exempt from licensure. If indices are referenced in marketing material, it is important to note that these cannot be invest in directly, any vehicle such as Passive index-based ETFs and Mutual Funds which attempt to replicate indices have internal expense ratios and other associated costs that would negatively impact returns. No advice may be rendered unless a client service agreement is in place. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.
