A Personal Note
Yesterday I spent the day at the United Nations in New York City. I attended a conference entitled: “Investing in Women & Entrepreneurship,” which coincided with the 100th anniversary of International Women’s Day.
In celebration of that 100-year milestone this newsletter focuses on some critical ‘Do’s’ for women from CAIM’s report: “What Women Want: Understanding the Modern Female Investor.”This is crucial info for men too. Men need to be aware of the issues involved with investing wisely today, so that they can help pass those values down to their children and grandchildren. We hope that the men reading this will join in support of women and investment education.
Catherine Maniscalco Avery
CAIM specializes in creating and managing
customized and fully diversified investment
portfolios for private investors.
5 Things Every Woman Should Know About Investing
1. Most women will need to retain up to 85% of their pre-retirement income to remain comfortable through retirement. In order to do that, a growth and income strategy should be applied to a broader diversified investing plan in order to develop that income over time. The earlier that growth and income strategy is developed, the more likely it is to generate healthy yields in the future.
2. Investing in dividend paying stocks is one of the best ways women can preserve value through dividend reinvestment and stock price appreciation. Time and again dividend stocks have proven their mettle with their excellent performance over time. Additionally, dividend stocks remain stable even when the markets are far too turbulent and unpredictable for non-dividend stocks.
3. Based on what we know about women investors, we believe they are not diversifying into equities that fit their risk / reward profile enough in their investment portfolios. Putting one’s eggs into one basket so to speak can be risky, even when investing in CDs or government securities like many women find themselves. Not only does that investment philosophy leave relatively low risk money on the table, it also does not represent proper diversification in an investment portfolio.
We are strong advocates of dividend investing for women and we encourage more women and their financial advisors to focus on adding a dividend portfolio in order to diversify their risk and generate growth and income.
4. For many women with limited experience in personal investment or planning, a professional advisor is a key gatekeeper to the market, providing education, confirmation of past decisions, and emotional support through life changes.
5. From an investing standpoint, our data shows that women must prepare for at least 14 years of income beyond their husband. In particular, if these women have some form of inheritance, a very specific investment strategy, tailored to their needs, must be employed to meet their expense, cost of living and other requirements during this period.
Copyright 2011, CAIM LLC
Disclaimer: NO CONTENT PUBLISHED AS PART OF THE CAIM LLC NEWSLETTER CONSTITUTES A RECOMMENDATION THAT ANY PARTICULAR INVESTMENT, SECURITY, PORTFOLIO OF SECURITIES, TRANSACTION OR INVESTMENT STRATEGY IS SUITABLE FOR ANY SPECIFIC PERSON. TO THE EXTENT ANY OF THE CONTENT PUBLISHED AS PART OF THE BLOG MAY BE DEEMED TO BE INVESTMENT ADVICE, SUCH INFORMATION IS IMPERSONAL AND MAY NOT NECESSARILY MEET THE OBJECTIVES OR NEEDS OF ANY SPECIFIC INDIVIDUAL OR ACCOUNT, OR BE SUITABLE ADVICE FOR ANY PARTICULAR READER. EACH READER AGREES AND ACKNOWLEDGES THAT ANY SPECIFIC ADVICE OR INVESTMENT DISCUSSED IN THE BLOG MUST BE INDEPENDENTLY EVALUATED BY THE READER AND HIS OR HER ADVISER IN VIEW OF THE READER’S INVESTMENT NEEDS AND OBJECTIVES.
For those of you with questions, feel free to call me at 203.966.2712 or visit www.caimllc.com
*Please pass along this newsletter to friends and family*
to spread the word!