The Harsh Truth About Women and Finances
The “Slap in the Face” Award this week is for all the women out there who refuse to get involved with investing.
Let’s get right to the tough part…
According to Alice Finn, a MarketWatch contributor and 20-year veteran of the money business, as long as women refuse to get more involved with their money, they’ll never be the financial equal of men.
Finn says women have a “blind spot” when it comes to investing. She’s seen it again and again with her female clients.
And it’s a huge problem for two reasons:
- First – like it or not – eventually, nine out of 10 women will have to manage their finances and those of their family at some point. But most wait until the crisis stage to do anything about it.
- Second, since women live longer, they need their retirement assets to work even harder. And as such, they should be the ones who are more (rather than less) involved with finances.
According to Finn, women don’t get involved for a handful of different reasons. They think they’re too busy, or they see it as boring, complicated or even the work of old men with white hair.
So they delegate the responsibility to the men in their lives.
It’s really unfortunate because in my experience as a former advisor (most of my clients were women), women tended to have better gut feelings about financial ideas than men did.
And if they make the effort, they’re better intuitive investors than men too.
I’ve said it before, this is not brain surgery!
You need to understand some basics and the time-proven truths about the markets… But investing isn’t the impossible task most think it is.
The advent of ETFs and the enormous amount of financial information available on the internet has turned what – in the past – seemed like magic into a reasonable task for most folks.
If you see yourself in Finn’s description of her female clients, you need to get involved with your money now.
Do it before the crisis stage.