Diversity Woman Magazine

WIN 2019

Leadership and Executive Development for women of all races, cultures and backgrounds

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d i v e r s i t y w o m a n . c o m W i n t e r 2 0 1 9 D I V E R S I T Y W O M A N 41 Tanisha A. Sykes W hen it comes to investing, women and men have differ- ent strengths. While women earn less than men, they invest a larger percentage of their paychecks annually—9.0 percent versus 8.6 percent for men, according to Fidelity Investments. Men tend to take more risks, but women are better at investing. One factor, according to Fidelity, is that men are 35 percent more likely to make trades, and the resulting fees diminish their portfolios more than women's. Also, women save more, nearly 1 percent more annually in 401(k)s, IRAs, and brokerage accounts. Another advantage: Women as- sume less risk by not strictly investing in ISTOCKPHOTO Women, Investing & Retirement DW Life > equities. Instead, they invest in vehicles like target-date funds, which are struc- tured to grow assets to address a future need such as retirement. In other words, women tend to stay the course even when the ride is a little bumpy, as one Better- ment study found. Despite women's investing prowess, they still earn just 80 percent of what men do according to a 2018 report from the American Association of University Women (AAUW). As a result, women receive less than men from Social Security, pensions, life insurance, and disability income because these benefits are typically based on earnings, accord- ing to the AAUW survey. is impacts their economic security. In fact, the life- time earnings of women are $1 million less than those of their male counter- parts at retirement, according to new research from Bank of America Merrill Lynch. What's more, nearly 52 percent of women lead single households, and saving for retirement is often solely on them. erefore, women, even at the most senior levels, have some ground to make up. Investing your money is an integral part of your financial security. Even if you use the services of a financial advi- sor, be prepared to stay in control of your investments with this comprehen- sive guide. Learn the lingo One of the most frustrating parts of start- ing a new journey as an investor is encoun- tering terminology you don't know. Try sites like Investor Junkie and e Balance for a list of common terms and definitions to boost your investing know-how. What you need to know to take control of your financial future Money Matters

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