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!
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
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 also cause the amount of their savings and retirement benefits to be less than men when they reach Social Security age!
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! According to one reputable research report…women in 2015 were making 83% of what their male counterparts were earning! This gender wage gap needs to be addressed as it is certainly not fair.
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 today are single parents and the “sole” breadwinners in their households. These women need to make their money grow harder.
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 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 skills, you can do much better? And, the younger women start investing…the better!
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)!
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.
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 better way to grow your income over time!
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 and a “Do-It-Yourself” Investor. I use my extensive accounting knowledge to research stocks online and also study everything I can related to stocks. I have read hundreds of books on investing! Learning how to invest well has definitely maximized my income. “Knowledge is power ladies!”