Women Wealth & Wisdom |
Building Assets
For women, building assets presents some unique challenges. Unlike men, women tend to be more conservative with their investments, which often prevents them from enjoying large profits. Whereas men grow their principal investments, women tend to protect theirs – learning to take calculated and educated risks may enable women to see larger returns and build more assets.
Since U.S. Census 2008 reports show that women can expect to live several years longer than men, retirement savings need to cover more years, and see women through years spent without their partners. Financial independence allows women to take responsibilities from the spouses, and prepare themselves for their own economic futures.
Women have the potential to be in charge of their finances at any time, whether by choice or circumstance – death and divorce are two factors that could contribute to an unplanned need for women to know how manage their finances themselves. Women should routinely review their savings, investments, retirement plans and insurance documents and be sure that they understand the significance of these accounts.
One of the most effective ways to save money, and build assets is by starting early and putting money away each month. The sooner you start to save, the more your principal will grow and the more compound interest your savings will accrue. Compound interest is the key to long-term savings – the difference of 5 years can cost thousands of dollars.
Since women are often uncomfortable with the stock market, you might want to consider other forms of investment. For example, real estate can be an excellent investment and a great way to build assets, while also feeling more substantial and practical than numbers in the stock market. With real estate women can also be secure that they can live in their investments should their financial situation change, as well as offer housing to their children, if necessary.
That said; there is no reason why women should stay out of the stock market just because it has traditionally been a man’s realm. The key to stock investment is education, and there are a number of ways that you can learn. Take books from the library to read about the basic principles of investment. Meet with a financial professional at your bank to ask questions about the types of investment that are appropriate for you. There are even classes available at most community colleges that teach the fundamentals of investment that can go a long way towards empowering women to take the stock market by storm.
Useful Resources & Links:
AXA Equitable Life Insurance Company (AXA Equitable) (NY, NY)
Securities are offered through AXA Advisors, LLC, member FINRA, and SIPC. AXA Advisors, AXA Network and AXA Equitable are its affiliates.
Investments are subject to market risk, will fluctuate and may lose value.
Please be advised that this document is not intended as legal or tax advice. Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from and independent tax advisor.
