‘You Don’t Have To Become An Expert’

Fidelity’s 2021 Women and Investing study found that, on average, women saw positive returns on their investments, even exceeding men’s portfolio performance. Fidelity’s analysis looked at more than 5 million Fidelity client portfolios over the past 10 years and found that, on average, women outperformed their male counterparts by 40 basis points or 0.4%.

The earlier you start investing, the more your money can grow in the market, so your smartest decision is to start. O’Keeffe Merrick offers some tips for building confidence and starting to put your money in the market:

1. Identify your fear

Women tend to be more risk averse than men, but “finding out where this risk aversion is coming from is an interesting way to solve this problem,” says O’Keeffe Merrick.

The way people manage their money often dates back to how they were taught money from an early age. But even if you have luggage, you can still invest while being careful. There are different types of investments for different levels of risk tolerance.

For example, more conservative investors can put their money in low-cost mutual funds or ETFs that offer automatic diversification and lower risk than choosing individual stocks.

In fact, many of the best robotics advisers will use ETFs to build investor portfolios because of the low risk they carry. A robot advisor can be an effective way to make investing easier, as it customizes a portfolio for you based on your risk tolerance, goals, and timeframe. They will rebalance your portfolio for you as needed so you can take care of your investments knowing your investments are taken care of.

Ellevest is a robo-advisor that stands out specifically for women. Its platform algorithm takes into account the important realities of women’s lives, such as pay gaps, career breaks and increased life expectancy, so that women can get a real sense of the future. their financial situation. For a monthly (or annual) fee, Ellevest also provides access to online workshops, email courses, and video resources from its team of financial planners and career coaches. Read Select’s full review of Ellevest to learn more.

Another popular robo-advisor option that doesn’t require a membership fee is Betterment. There is no minimum balance required for Betterment Digital Investing, and the annual account fee is 0.25% of your fund balance. Read Select’s full review of Betterment to learn more.

2. Talk to someone you trust

“There’s something about putting their money at risk that really freaks out women,” says O’Keeffe Merrick.

They might not realize it then, but women are reluctant to invest because they naturally tend to look to places that are safer for their money; However, this comes at the expense of their own financial growth.

“Women are so much faster to write a check to charity than to write themselves a check,” adds O’Keeffe Merrick as an example.

Someone who will guide you on your investment journey can help allay any fear you may have. “Real help doesn’t have to be [from a] professional, just call someone who has done it before, ”says O’Keeffe Merrick.

While it is recommended that you speak with a reputable fiduciary investment advisor to determine the best approach for your specific investment goals, O’Keeffe Merrick’s point here is simple: you’re more comfortable doing something. something new with a friend or family member by your side.

Prospective investors may feel less afraid of the market once they talk about it with someone they know and trust and who has taken the leap themselves.

3. Build on your learning style

There are tons of educational resources out there, which can sometimes contribute to feelings of being too overwhelmed to invest at all. A great way to feel more confident is to make business news something you consume every day – and consume it the way you learn best.

Start with easy-to-digest email newsletters to learn more about the day-to-day markets like CNBC’s “Morning Squawk” or the new “CNBC Investing Club With Jim Cramer” for an overview of stock picks and trends. Cramer’s investment advice. O’Keeffe Merrick recommends the newsletter “Axios Markets” and “Axios Closer”, which focuses on trading topics and trends.

If you’re more likely to listen to something than read, opt for business news podcasts like Planet Money or NPR’s Marketplace.

Select has an entire section devoted to everything related to investing. We regularly chat with experts about their advice for newbies who want to start building their wealth, as well as researching the best IRAs, Roth IRAs, robo-advisors, free stock trading platforms and investment apps. Plus, O’Keeffe Merrick answers readers’ most pressing financial questions once a month in his new advice column, Getting your money back. Its first installment guides a reader on what to do with his savings stock, and his second installment explains how to deal with your fear of risk when investing.

Investing can certainly be intimidating, but stopping won’t help you in the long run. Women can gain confidence by identifying their fears, finding a friend to support them, and incorporating business information into their daily consumption.