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There remains a frontier that women have yet to truly conquer: investing.
A recent study by Merrill reported that while women’s confidence in nearly all other financial matters is equal to or greater than men’s, when it comes to investing, we dramatically underestimate ourselves. Just 52 percent of women say they are confident about investing, compared to 68 percent of men. The study also notes that failing to invest is the top financial regret among women. These statistics are especially troubling when you consider that when women invest, they outperform their male counterparts, according to a new study by Fidelity that analyzed more than 5 million customers over the last 10 years.
“Many women have grown up with the mindset that money is one of the few hush-hush topics that should be avoided in polite company at all costs,” says Ella Gupta, the personal finance ambassador for the money app Greenlight and the author of Gen Z Money $ense: A Personal Finance and Investing Guide. “But if you want to be in control of your financial life, overcoming a fear of money is necessary.”
That’s what this package is about. First, we’ll talk about the disconnect between financial confidence and performance, and what we can do to change it. Then we’ll discuss sound strategies for getting started investing…at your own pace, whether it be using fractional apps, angel-investing in companies that mean something to you, buying real estate, or dipping a toe in the seductive pond of cryptocurrency. Finally, we’ll answer the most important question: Why is it so important for women to invest now?
As the Merrill report notes: “Today, women’s lifelong financial wellness is at a tipping point. … They are poised to move into true financial independence, enjoying all the freedom that it brings. Yet there is still a trail left to blaze.”
“Women tend to take a longer-term view on finances than men, which gives them a powerful advantage to approach investing in a smart, disciplined, and future-oriented way,” says Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America.
The first step toward gaining financial confidence is to begin simply talking about money. This is no small feat. The Merrill report, for instance, found that 61 percent of women would rather discuss their own death than money.
Try establishing your own trusted financial community, suggests Gupta. And use this community to learn from the experiences of other women, and openly exchange tips. “Community also provides accountability throughout the process. You could even begin an investing club with other women, to …….