Studies show female investors consistently outperform their male counterparts! So, what are they doing right and how can you get in the game?
When it comes to investing, one fidelity report found women outperformed men by 40 basis points per year.
“Men see money for what it can do for them today. Women see money for the safety and the security it can give them to maintain their lifestyle to achieve their lifestyle,” said expert and founder of Woman’s Worth, Jeannette Bajalia.
While women do perform well, many don’t invest or don’t know where to begin.
“The first tip is know what you have and know where the money is,” Bajalia said.
Start with low-cost index funds, which give you a diversified portfolio. Look for funds with an expense ratio below 0.1%. That means less than one dollar of every one thousand goes towards fees. Never invest your emergency fund, which should cover at least six months, and find a financial adviser who talks in a language you understand.
‘I worked in the financial industry long enough to know that it does not speak the language of women. And it’s almost, I get the sense that it’s deliberate,” Bajalia said.
There are stock trading simulators you can practice with. The top three are Wall Street Survivor, How the Market Works, and MarketWatch Virtual Stock Exchange. You can find all three for free online.