Recommended investments for single working women

July 17, 2:01 PMWomen of the Web ExaminerBrit Horvat

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Valorie Simpson - president of Colorado Business Bank Northwest

Valorie Simpson, your go-to gal for all things money and finance, is back with more advice. Every other week or so, you'll find her debunking moolah myths and answering your financial questions here. Got a pressing question you'd like answered by Valorie? E-mail it to brithorvat@gmail.com. 

Anne from Boulder asks:

During these rough economic times, what type of investments do you recommend for single working women? 

Valorie says:

Anne, I get asked that question in both thriving and difficult economic times. “Single working women” covers a vast array of individuals with very different financial profiles. Although I wouldn’t be able to provide specific advice without knowing details about your personal financial condition, I can give you some sound principles that will help you in any economic climate.

• What is a safe investment?

The “safest” investments are generally those with the least amount of risk for losing your initial investment amount. Examples would include FDIC-insured savings and money market accounts, or certificates of deposit. These are interest-bearing accounts that are guaranteed up to $100,000 if the financial institution were to fail. Another option would be investment-grade, short- to intermediate-term bonds. Bonds are a type of investment whereby the investor (you) make a loan to a corporation or municipality, and are paid interest at a later date.

• Have a long term plan for retirement savings.

If your employer offers a matching 401(k) or 403(b) plan, start investing immediately! Failing to do this is like throwing away free money. Make sure your plan includes a diverse group of investments to stay ahead of inflation.

• Diversify, diversify, diversify 

Investing in a variety of types of investments will help balance your portfolio, thereby reducing your risk. Investments have up and down cycles, so by diversifying it will be less likely to have all of them at a low at the same time.

• Avoid the “flavor of the month” when investing.

Instead, determine a sound financial plan and stay disciplined in your approach.

• Meet with a financial planner or investment advisor ...

... to determine the best strategy for your specific situation. Remember, get a second opinion to ensure the advisors have your best interest in mind, not their own commission check.

GOT A FINANCIAL QUESTION? If you have a question about something finance-related, chances are many others do too. And with today's economy, we're all experiencing things we've never dealt with before. Valorie Simpson, President of Colorado Business Bank Northwest in Louisville, is your go-to gal for basic financial advice and is here to answer your questions. E-mail brithorvat@gmail.com with any questions you have for Valorie, and she'll do her best to answer them here. Don't be shy!

READ MORE ADVICE FROM VALORIE:

Five steps to developing a budget ...

Don't ever sign anything you don't completely understand ...