Are you a reluctant investor?

October 30, 9:29 AMWomen and Money ExaminerPatricia Stallworth

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Are you a reluctant investor or have you taken your rightful place as a successful investor? Research conducted by the Oppenheimer Funds, Allianz, and others suggest that there are three basic reasons why women may be reluctant investors:

• Lack of Education. Typically, women don’t learn about investing while they are growing up and in all honesty, they are not expected to take on this role.
• Lack of Experience. Most women wait until they marry to consider investing and then they leave this task to their spouses.
• Fear that they will “lose it all.” According to Allianz, some 90% of women fear “losing it all,” and this includes all income brackets.

Despite the above reasons, there are so many reasons why women should be investing. As women, we face enormous challenges today primarily because we earn less and we live longer. The good news is that more women are investing today. But if you haven’t gotten started or you are a reluctant investor, here are five strategies to get started:

1. Educate yourself about investing. Take the fear out of investing by removing the mystery that surrounds it. Once you do that you will have a better understanding of what drives the market’s ups and downs and you won’t be tempted to panic every time the market moves. Start by taking classes, reading books, and picking particular stocks or funds to watch over time.
2. Buy what you understand. Never invest in anything you don’t fully understand. There are a multitude of products available. Stick with the tried and true, and before you buy anything, ask questions to be sure you understand what you are buying, including the costs and risks.
3. Invest in what you understand. If you decide to purchase individual stocks, buy companies you understand and whose products or services make sense to you. Research is a big part of being successful so you will need to spend some time investigating before you invest. Choose something that interests you. And if you decide to invest in mutual funds, look for funds that match your goals and your risk tolerance level.
4. Get the right advice. If you choose to work with an advisor, and many women are more comfortable going this route, be sure they are willing to work with you. This means they make suggestions based on your goals and they explain things in “plain English.” Remember, it is your money and you will have to live with the outcome, so you should have the final say.
5. Just do it. Whether you choose to go it alone (invest to your own beat), follow a role model like Warren Buffet, or join an investment club – just do it! Experience is one of the best teachers so don’t wait to get started. Start small and increase the amount you invest as your skill and confidence grows. Building your investing muscle may take some time but in the end, it will be well worth the effort. 

"Remember, the best way to predict the future is to take charge, take control, and create it!" ps            For more information about upcoming money education teleseminars, click here or visit my website at www.MindingYourMoney.net.