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Money Management Tips For Women
 
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This month our topic is women and investing. 

We want to remind women just how important it is to stay on top of their financial circumstances.  

And not just women.    Men need to do the same, and encourage the women in their lives to take advantage of all the great ways they can maximize their savings.

 

Warm regards,

 

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Catherine Maniscalco Avery

 

The backbone of CAIM is to employ a classic long term investment strategy including dividend paying stocks. CAIM is an independent, women owned investment management firm specializing in managing investment portfolios for women and baby boomers.

203.966.2712  p
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June 10, 2014|  Issue No. 53
In This Issue
Money Mgmt For Women
Entrepreneurs At Risk
Market Update Q1
Quick Links
Find Out More
Call me at 203.966.2712
or visit www.caimllc.com.

 


Money Management Tips For Women 

                                                                                                                       

Women are quickly surpassing men as the most affluent demographic in the United States. With more money in our pockets and less time to properly manage it, women need a basic tool kit to effectively grow their wealth. Here are 5 things every woman should know to be financially savvy.

 

1. Maximize retirement savings. Women need to know that after they reach 5o, there is a catch-up option to increase the contribution to their retirement account. For example, for a traditional IRA, that would mean an extra $1,000 a year or an extra $5,500 if you have a 401k plan. Most women will need to retain up to 85% of their pre-retirement income to remain comfortable through retirement so boomers, especially, should make use of this option if they possibly can.  

 

2. Diversify, Diversify, Diversify! We have all heard the adage about not putting all our eggs in one basket, and its good advice. How does one figure out how much to put in stocks, bonds and money markets? Many people will ask you, What is your risk tolerance to describe how they should figure out your asset allocation. A much easier way to think about it is to take out a sheet of paper and create 3 columns. The first should represent money that you need for the next 1-3 years. This money needs to be in money markets, CDs, or a savings account. The second column is money for the next 3-5 years which should be in short to intermediate term bonds. The third column is money that is long term savings in which you can afford to take some extra risk. We suggest a diversified portfolio of stocks.

 

3. Multitask your investments.  According to a recent study conducted by our firm, CAIM LLC and thepollingcompany/womantrend , most women preferred lower risk investments. 60% of women have thought that investing in equities was a good idea, yet 60% were not confident about investing in equities. Women should consider using high quality dividend paying stocks for their allocation to stocks. These stocks not only offer appreciation in price, but also provide a stream of income, hence the multitasking. They offer benefits in both up and down markets. While the price will rise in an up market in a down market the investor can at least capture the dividend and use it to buy more stock at a lower price, or have a supplement to your income.

 

4. Look abroad for opportunities.  Some of the fastest growing markets are overseas. 80% of world GDP actually comes from outside the United States and currently about 46% of worldwide growth is coming from emerging markets. While these stocks tend to be higher in risk, even a small allocation to international companies is beneficial to a well diversified portfolio. As these companies are faster growing, they also have the potential to rise higher in value.

 

5. Build your team. Women are more educated than ever before and are starting to make more money. We are experts and highly knowledgeable about our particular areas of expertise, but may not be experts at everything. The work life balance is a constant struggle and thats when we need to call in the team to help keep our lives functioning smoothly. Have a team in place of an accountant, estate planning attorney and an independent investment advisor who acts as a fiduciary. An investment advisor, who is also a fiduciary, is required to always act in the best interest of their clients. By adhering to these basic ways of managing money, a woman can gain greater security both emotionally and financially.

 

By adhering to these basic ways of managing money, a woman can gain greater security both emotionally and financially.
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Entrepreneurs Still At Risk



In a 2009 CAIM newsletter called: "Entrepreneurs At Risk," we highlighted the fact that too many entrepreneurs fail to ... Read more >>
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Market Update 1st Quarter 2014
 
Holding its ground.  That's the best way to describe the 1st quarter.   After a year of great returns, the market has been...Read more >> 
 
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