Women and Investing: 20 Years of Research and Statistics Summarized
https://www.fool.com/research/women-in-investing-research/
KEY TAKEAWAYS
- Only 52% of women say they’re confident managing investments
- As women age, they get more confident in their investing skills
- Women keep almost 70% of their portfolios in cash
- Women may shy away from risk to their detriment
- Women earn up to 1% better investment returns than men
- Women are less impulsive investors than men
- Women are more disciplined savers than men
- Women have responded to the pandemic by investing more
DISCUSSION QUESTIONS
Do you feel confident that you have invested your money well?
Are you worried that you might be making mistakes with your investments that you will regret later?
Do you feel like you understand the stock market? Does the stock market feel like “gambling” with your savings?
How have you learned about investing up to this point?
BONUS READING
The Simple Path to Wealth: Your road map to financial independence and a rich, free life
by J.L. Collins
This book is well researched book that literally describes a “simple”, and more importantly, efficient path to wealth. This book explains the performance of the stock market based on the past 100 years of historical performance. The book also clearly explains why low-fee index funds almost always outperform actively managed mutual funds over the long-term.
https://www.goodreads.com/book/show/30646587-the-simple-path-to-wealth
KEY TAKEAWAYS
This book explores:
- Debt: why you must avoid it and what to do if you have it
- The importance of having f-you money
- How to think about money, and the unique way understanding this is key to building your wealth
- Where traditional investing advice goes wrong and what actually works
- What the stock market really is and how it really works
- Why the stock market always goes up and why most people still lose money investing in it
- How to invest in a raging bull or bear market
- Specific investments to implement these strategies
- The Wealth Building and Wealth Preservation phases of your investing life and why they are not always tied to your age
- How your asset allocation is tied to those phases and how to choose it
- How to simplify the sometimes confusing world of 401(k), 403(b), TSP, IRA, and Roth accounts
- TRFs (target retirement funds), HSAs (health savings accounts), and RMDs (required minimum distributions)
- What investment firm to use and why the one I recommend is so far superior to the competition
- Why you should be very cautious when engaging an investment advisor and whether you need to at all
- Why and how you can be conned, and how to avoid becoming prey
- Why I don’t recommend dollar cost averaging
- What financial independence looks like and how to have your money support you
- What the Four Percent Rule is and how to use it to safely spend your wealth
- The truth behind Social Security
- A case study on how this all can be implemented in real life
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