Why Is It So Important For Women To Invest In Stocks?
Why is it so important for women to invest in stocks? Investing in stocks helps women maximize their income! Historically, stocks have outperformed every other investment long-term!
Women Need To Grow Their Money More Than Men
Do women need to grow their wealth more than men? Definitely! One reason is that women have a longer lifespan than men. A recent study by Bank of America states that on average, women outlive men by about 5 years. Women, as they age, will need to supplement their Social Security income when they retire.
Absences from the workforce, due to family priorities such as childbirth, caring for family members, (both young and old), reduces women’s long-term earnings! These interruptions from their careers will cause the amount of their savings and retirement benefits to be less than men when they reach Social Security age!
Women Still Make Less Money Than Men
In addition, women still make less money than men in many fields even though they are doing the same work as men! Even in this modern day and age, there continues to be wage inequality between men and women! Women’s work is often underpaid and undervalued by society. According to one reputable research report…women in 2015 were making 83% of what their male counterparts were earning! This “unfair” gender wage gap still exists! This gap should be addressed and corrected.
Another reason women need to invest in stocks is that there is an increase in women supporting themselves today. With the divorce rate high in America many women are single parents. The great majority of these single parent households are women. These women are the “sole” breadwinners in their households. They need to learn how to invest in stocks to make their money grow harder.
More Women Need To Learn How To Invest In Stocks
With banks paying ridiculously “low” interest rates today on cash savings, it is important for a woman to learn everything she can about investing in stocks. The following is a result from a 2018 Women and Investing Study from Fidelity Investments: “With more than half of women (56 percent) still not investing, and leaving nearly all their savings in cash or bank accounts–which on average earn less than a one-two percent return–many may be missing out on thousands of dollars in potential earnings.”
Why settle for rock-bottom interest rates on your hard-earned money when, with the proper investing education and skills, you can do much better? And, the younger women start investing…the better! Investing long-term allows compound interest to grow.
Some women may feel “safer” with cash investments but it is actually riskier because you are not earning any money on your savings! For instance, earning just 1% on your savings puts you “in the hole” financially! By the time you back-out inflation and taxes from this 1% figure you are in the negative (red)! This is not being smart with your money!
Unfortunately, our educational system in America has not provided the necessary financial education to invest properly! When you learn to invest in stocks long-term, you can at least earn a decent amount of money on your savings! And, with the advent of technology, today, its’ never been easier to research a company online.
Women Are Better Investors Than Men
Another important reason for a woman to invest in stocks is that women make better investors than men! Numerous studies have proven this point. Don’t wait for stocks to come to you! Take the initiative ladies and learn how to invest in stocks today! There is no proven better way to grow your money long-term!
In conclusion, it is important for women to grow their money by learning how to invest in stocks. One reason for this is that women have a longer lifespan than men. In addition, women’s absences from their workplace, due to family obligations, often causes women to suffer a loss of income. Moreover, there still exists a gender wage gap and women, to this day, continue to earn “less” than men.
I am an Accountant with a Bachelor of Business Administration degree in Accounting and a “Do-It-Yourself” long-term investor in stocks. I pick my own stocks and using my extensive accounting and finance knowledge research stocks online. I also study everything related to the companies behind them. I have read hundreds of books on investing! Learning how to invest well has definitely maximized my income! “Knowledge is power ladies!” If you want to make the most of your money, and are not already investing in stocks, its’ never to late to start!
