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The Importance of Women Investing: Building Wealth and Financial Independence

In today’s turbulent financial landscape, one undeniable truth stands out: Women need to invest. This conversation more critical than ever. Nancy Tangler, author of “The Women’s Guide to Successful Investing,” joined Andrea Lawful-Sanders on The Source to highlight the urgency of women taking control of their financial futures.

Recent studies have shown that women tend to have less money for retirement compared to men. The reasons behind this disparity are multifaceted. Women often leave the workforce at some point in their lives, either to care for children or elderly parents. This interruption can lead to lower income and less savings for retirement. “Because women identify as savers, not investors, they don’t take enough risk. And when you don’t take enough risk, you don’t have the opportunity to earn. So if women are saving less for retirement because they’re leaving the workforce to take care of loved ones, etc., they really have to make sure that they’re managing their risk profile,” said Tengler. 

COVID-19 has only exacerbated these issues. The pandemic forced many women to leave the workforce, further limiting their financial resources. It’s also important to remember that women live longer on average than men, which means their retirement savings must stretch further.

A surprising fact is that women often outperform men in investing over the long term. Numerous research studies have shown that women tend to earn better investment returns. This phenomenon can be attributed to several factors. Women are more inclined to conduct thorough research and exhibit patience, often holding onto their investments during market volatility.

One major challenge women face when it comes to investing is a lack of knowledge and exposure to financial jargon. Many women feel intimidated by the language and complexities of investing. That’s why educational resources and accessible information are essential in bridging this knowledge gap. “You don’t have to be a portfolio manager like me. There’s so much free information on the internet that, you know, 20, 30 years ago, we paid millions of dollars for on the professional money management side,” Tengler said. “You can go to Yahoo Finance. You can go to your Schwab account. You can look at other data.”

Moreover, technological advancements have made investing more accessible than ever. Platforms like Cash App allow individuals to buy fractional shares of stocks, making it easier for those with limited funds to start investing. This democratization of investing empowers women to take their financial future into their own hands.

Investing isn’t just about building wealth; it’s about achieving financial independence. When women invest wisely, they can secure their financial future, maintain their lifestyles in retirement and even leave a legacy for their loved ones. It’s essential for women to understand that it’s never too late to start investing. Whether you’re in your 20s or nearing retirement, there are proven strategies to help you achieve your financial goals.

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