Women and Investing….and Smart Shopping
Did you know that the stock market fell a whopping 58% from the end of 2007 to March 2009? Since that 2009 bottom, the stock market (index for large company stocks) has risen 179%. (1)
Last week a money coaching client told me that she had some money she wanted to put into the stock market so she could diversify her investments. She currently has a lot of real estate, and owns her own small business.
Here’s the thing: Diversification makes a lot of sense; but when buying anything, whether it’s a house or a stock fund, check the valuation to see where it is and where it’s been. Five years into a bull market may not be the best time to put 100% of your liquid assets (money market or cash savings account) into the stock market as a whole.
As a general rule, women are amazingly smart shoppers. As I wrote in my book, women love sales, and tend to always evaluate the price before buying anything. Apply this same mindset to your larger purchases. Investing in the stock market is a larger purchase; a purchase with your life savings that provides financial security.
When it comes to women and investing, sometimes women give away their power by NOT checking the price. Check the price tag, ladies. Always. This applies to your employer’s retirement fund, your savings account, or money that you have professionally managed by a financial adviser.
(1) Source: Investors Business Daily