5 Ways Women Can Invest With Confidence
3 min read
Key takeaways
- Start early. Even small amounts grow over time.
- Know why you're saving. Clear goals make it easier to keep investing.
- Use your workplace 401(k), especially if your employer matches contributions.
Financial planners want more women to step up their investing game. Women can open up, ask questions and learn just as well as anyone else.
Here are five steps that can help women improve their financial future.
1. Start early
Women typically have less saved for retirement than men. Part of the reason is starting later.
Whatever you can invest, even a little, is better than nothing.
Some women put off investing because they don't think they fit the profile of an investor. That's a misconception. You can start with any amount. You don't need a certain sum in the bank, or a partner, to start growing your money.
2. Set financial goals
Many women find it hard to take the first step. Picturing your ideal financial future is a good way to get into the right mindset.
Think about why you want to save a certain amount. Is it for your family? Maybe a comfortable retirement is your main goal, or sending a child to college.
Whatever your reason, keep it front of mind. Knowing why you're saving makes it easier to invest your money rather than spend it.
3. Try a beginner-friendly investing app
Many investing apps are designed for beginners. They make investing more approachable by breaking it into small steps, and they help you build your knowledge as you go.
You don't need to know a lot about money to start investing with them. Look for an app with low fees and clear explanations, and check that the company is a registered broker or investment adviser.
4. Get your 401(k) in shape
If your employer offers a 401(k), you can usually sign up through your HR department.
Most plans offer a range of funds to choose from. Many employers also match part of what you put in. That's essentially free money toward your retirement, so try to contribute at least enough to get the full match.
5. Ask questions
Many women feel daunted by how much they don't know about investing. That can change.
Don't feel shy about asking questions and learning as you go. Surround yourself with the right people, whether that's a financial advisor or friends who invest, who encourage your questions and never make you feel silly for asking.
Ask not just one question, but plenty of them.
Investing involves risk. The value of investments can go down as well as up. This article is general information, not personal financial advice.
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Questions people ask
How much money do I need to start investing?
Very little. Many apps and brokers have no account minimum and let you buy fractions of shares, so you can start with a few dollars.
What is a 401(k) employer match?
It's money your employer adds to your 401(k) when you contribute, often up to a set percentage of your salary. It's one of the easiest ways to grow your retirement savings.
How do I check that an investing app or advisor is legitimate?
Look the firm or person up on FINRA BrokerCheck or the SEC's Investment Adviser Public Disclosure website before you invest.
Sources
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