Written by Andrew Hunt
Written by Andrew Hunt
The wealth gap between men and women is an issue we are passionate to change at Hiley Hunt Wealth Management. We want to empower women to be breadwinners and exceed their financial goals.
Historically, women have invested far less than their male counterparts, and tend to save less as well. This is unfortunate because women tend to live longer than men, are disproportionately more likely to care for their children and aging relatives, and earn less from their careers thanks to the gender pay gap – which may affect retirement benefits from Social Security.
The irony of it all is that studies show that women are actually better at investing than men, but do it much more infrequently. Let’s take a look at ways to get started investing.
One of the easiest first steps to investing is taking advantage of employer-offered 401(k) plans. Many workplaces also offer a contribution matching program. This is free money offered to you that you should take advantage of.
Self-employed? You still have retirement options. The most common retirement accounts for freelancers and those that are self-employed are SEP IRAs, Simple IRAs, and Individual 401(k)s. Similar to retirement accounts offered by employers, these retirement plans have two factors in common: up-front tax breaks and tax-deferred saving, meaning you don’t pay taxes until you withdraw the money years later in retirement (the Roth version of the individual 401(k) is slightly different.) Talk with your tax professional to determine which type of qualified plan is the best fit for you!
At HHWM, we believe that putting all your eggs in one basket isn’t a great way to grow your investments. To help minimize risk while continuing to grow your investments, it’s typically advised to diversify your investment portfolio. There are many options for investing. Here are just a few popular choices.
Of course, your investment strategy will likely look different than someone else’s. If working with a financial advisor, they will be able to explain your options and match you with the right investment strategy for you and your financial goals.
This is a critical step in your investment journey. You wouldn’t feel comfortable going to a doctor you don’t trust, so use that same judgment when looking for an advisor in charge of your financial health. Look for someone who aligns with your values and can help provide the framework for your financial plan. You want someone who will understand your life situation and can set you on a path to meet your financial goals.
Knowledge is the key to gaining control of your financial life. We help women understand their current financial situation, define their values and goals, and create a plan to begin moving forward.