According to a recent study by Fidelity, 93% of women feel stressed when it comes to managing their finances. HerMoney.com CEO Jean Chatzky joins Her Wealth! to contextualize the investment landscape for women investors and discuss opportunities for financial success, especially for women as more wealth becomes available. To do.
Historically, women have been more likely than men to keep their money in cash, Chatsky said. She explains that women have been left “on the back burner” when it comes to investing. “Women are more likely to say that being financially healthy feels like financial peace. Being stress-free is sort of the opposite of risk-taking.” This can lead to you taking a step back and holding back before putting your money to good use. ”
Research from HerMoney Media and Principal Financial Group shows that 59% of women don’t use a financial professional, and Chatsky suggests this needs to change. She advises women to find an advisor or contact their 401K plan administrator who can provide free financial assistance and suggestions.
For more expert insights and the latest market trends, click here to watch the full episode of Wealth.
Editor’s note: This article was written by Gabriel Roy.
video transcript
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– According to a recent study by Fidelity, 93% of women still feel stressed when it comes to managing their finances. However, as women earn more money, the stress begins to disappear. Earlier this month, her Ellevest co-founder and CEO Sallie Krawcheck was transferred to the US. Here’s what she had to say:
Sally Krawcheck: Women have more money and are more confident. They spend their money differently. They invest their money differently. They use money differently than men. They tend to give a higher percentage of their money and give more to organizations that support women and girls.
– And let’s talk more by inviting Jean Chatzky, CEO of HerMoney.com and host of the podcast “HerMoney with Jean Chatzky.” Gene, nice to meet you. First and foremost, when you think about what the big wealth transfers are going to be and how more women are going to have more equity positions, more financial security, and perhaps more of that as well. Where is the first step? Are you seeing or are you seeing some of that financial stress starting to be a thought process about how to actually de-risk and manage it and put it aside?
Gene Chucky: I don’t know if de-risking is actually a word I would use. Women now have access to more wealth and I think we need to take advantage of this opportunity. Sally is absolutely right when it comes to wealth transfer. And she makes sure she’s making enough investments.
Historically, women have been pushed back a bit. We keep more money in cash than men, 60% for men versus 70% for girlfriends. And we need to make sure that we’re not just investing, we’re investing enough, and we’re investing early enough that we can leverage the money for ourselves.
– So where have you seen areas where women are taking more risks compared to areas where men may be aware of the risks?
Gene Chucky: So when we look at how women view money, a survey conducted by HerMoney in collaboration with Principal Financial found that women are more likely to believe that financial health means financial peace. I understand. In other words, no stress, which is the opposite of risk-taking.
That leads us to take a step back and be patient before putting our money to use. Therefore, it is important for women to participate in this game. To make sure you are invested. That means she’s making the most of the money she puts into her 401(k) as early as possible. The funds in your 401(k) or IRA are enough to take on risk.
In other words, invest that money in stocks. and that sufficient support is available as needed for that strategy. Published statistics on the percentage of women seeking financial assistance. If you’re not sure if they’re doing the right thing, get a financial professional on board or pick up the phone and ask your 401(k) plan administrator to give you a free financial quote. You may be able to get help and suggestions. That’s a really good move.
HerMoney has launched an online investing club for women. It’s called InvestingFixx. Hundreds of women are making positive changes in their lives as we learn about investing together every other Monday night on Zoom.
– Based on your conversations, and your own research, what industries tend to offer more flexibility and paths to success for women?
Gene Chucky: When we talk about flexibility, we’re talking about job choices and career choices. And lately, we’ve started to see that across the board. Opportunities for working from home are increasing. Opportunities to work remotely are increasing. I have more opportunities to schedule my own time than before.
But in order to achieve that flexibility, you need to make sure that your ability to earn a decent living is not compromised. The wealth gap and the gender pay gap not only still exist, but are incredibly deep-rooted. And one of the reasons for the gender pay gap is that women are still the ones who take time off from work to care for children or elderly parents.
When you return to the workforce, you often have to work at a lower salary and with a lower promotion rate than before. That’s what holds us back. Therefore, women may have questions such as whether it’s actually worth compromising for flexibility if they don’t want to take a step back into work, or would they pay for a service that would allow them to stay on that track? It’s important to keep asking important questions. It’s something we have to do, but it’s something we feel we have to do.
– Jean, finally, for those of you watching, what can we do to close the gender wealth gap?
Gene Chucky: If you’re in a position to hire, I think it’s really important to not just hire women, but to hire women of color, where the gender pay gap is even greater. But you are promoting women. And you’re giving them an opportunity and you’re giving us an opportunity to move up the corporate ladder, so to speak.
And for women with partners, it is very important not to transfer control of their investments to their male or female partners. This should be something that both people have been doing throughout their lives so that they can both do it even if one of them needs to step back for a while.
– Yeah. absolutely. I mean, if it had been transferred to me, we would have invested in a bunch of Beanie Babies. And that was definitely the wrong decision here. Jean Chatzky is the CEO of HerMoney.com and host of the podcast “HerMoney with Jean Chatzky.” Gene, nice to meet you. Thank you very much for your time.
Gene Chucky: I’m glad to meet you. Thank you for inviting me.
