Marshay Clarke, a financial planner with Betterment, wants women to step up their investment game.
They can open up, ask questions, and learn just like the boys, she says. Clarke would like to see women take these five specific steps to improve their financial future.
The first, she says, is to start early on investment and retirement. Women typically have less in their retirement portfolios than men do. Part of the reason for this is that they don’t start early enough.
Whatever you can do, even if it is a little bit, is better than nothing, Clarke notes.
Some women put off growing their portfolio because they think they don’t meet the profile of the investor. Clarke says this is a misconception. You can get started with anything – you don’t need to have a certain amount of money in the bank or even be married to start growing your money, she says.
Second, Clark says many women need to set financial goals in order to see success. They often lack the confidence to take that first step. Envisioning their ideal financial future is a way they can get started in the right mindset.
Clarke says to think about why you want that certain dollar amount socked away. Is it for family reasons? Perhaps a timely retirement is your main goal, or sending a child to college.
Whatever your reasoning, become aligned in your mind with why you are saving. This always makes it easier to invest that money rather than spend it.
Thirdly, Clarke suggests trying one of the many new apps coming on to the market. Apps like Stash make investment approachable for women. They can take the initial risk out of investing by breaking it down. They also reduce risk by helping women grow their knowledge. You don’t have to know a lot about money to start investing with these apps, she says.
Fourth, Clark recommends getting your 401(k) ship-shape. You can set up one of these funds at your workplace, usually through an HR department.
There are often 10 to 20 different plans to choose from. The great thing about your 401(k) is that it is managed and often matched at your company. So, you save money and energy managing this fund but you also get your money back in essence, once your employer matches your investment. Talk about a great way to get started on retirement.
Lastly, women need to grow their knowledge by asking questions. They are often daunted by the amount they don’t know about investing, Clarke notes. They can change this, however.
They shouldn’t feel shy at all about asking a question and learning as they invest.
Clarke notes that surrounding yourself with the right people can really change this situation. For women, they can pick an investment team that encourages them to ask questions and doesn’t make them feel so shy.
Noting that her male clients aren’t shy at all about learning as they invest, Clarke encourages her female clients to take a page from the boys. Ask not one question but plenty of them, she says.