Investing in HER Future
We’ve heard time and time again, women are less likely than men to invest and fewer women are investing in their futures than their male counterparts. Research and statistics remind women that they are timid when it comes to the stock market.
The perspective here is all wrong. By placing the blame on behaviors aligned with people who identify as female, women will continue to not invest. The notion becomes a self-fulfilling prophecy, of sorts. If women are constantly told they are too afraid to invest in the stock market and reminded that their female peers are also not investing, they will not be more inclined to alter the dynamic - unless they are one of those “Nasty Women” as President (Elect, depending on publishing date of blog post) Donald Trump so fondly coined.
This conundrum should be addressed by looking at what is wrong with the system that prevents women from investing, and how can it be shaped to welcome women. Besides, “Investing like a woman” should really be viewed more as a complement, not an insult.
The more reserved mindset women bring to the stock market is actually valuable. These trends prove women research more, trade less and keep their cool during unsteady market movement. According to Kiplinger, the portfolios of female investors hold up better during a market downturn than portfolios managed by men.
Since 86% of investment advisors are male, it is male salaries, career paths and life-spans that are considered in investment decisions on mutual funds and the experiences of women aren’t taken into account. The stock market refracts the patriarchy and does less to serve women then it does to serve men. There is a startup whose mission is to unleash the untapped potential of female investors by encouraging more women to invest in their futures.
In Comes Ellevest
Ellevest is a digital investment agency operating under the notion that the “gender-neutral” investment industry fails women. The fiducial values the difference in perspective women bring to investing. Ellevest strives to empower women to “Invest like Women because money is power.”
The financial industry is well aware that women take less risk when it comes to investing money but Ellevest takes this into account when assisting women in planning for their future. They also consider women’s longer lifespan and the various life goals women may prioritize that men might not.
Ellevest places emphasis on goals of the women that invest with them. When you sign up, you are prompted to prioritize the seven goal options offered. The options include:
Retirement on My Terms
A Place to Call Home
Kids Are Awesome
Start My Own Business
An Emergency Fund
A Once-in-a-Lifetime Splurge
In Comes FEM
At FEM all contractors / interns / employees receive a monthly gift to put towards their Ellevest account. Whether they are saving up for a rainy day, preparing for kids or want to save up some cash for that Martha Stewart wedding planner - they have that opportunity here. We believe that women should have control of their financial futures and should want to have stake in the volatile stock market climate.