The Growing Importance of Women and Investing

*This article was originally published on the Ronald Blue Trust website here.

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At Ronald Blue Trust, we want to continue to encourage and empower women to play a larger role in their finances and investment strategy. 

In June 2019, it was reported that 51% of the personal wealth in the U.S. is controlled by women. This percentage equates to $22 trillion,1 a figure that slightly exceeds the size of the U.S. economy measured by GDP (Gross Domestic Product). Despite women controlling a growing amount of wealth, we have found that they are often reluctant to invest their wealth, preferring to keep it in cash or a savings account because they may feel intimidated by investment decisions. According to a recent SURVEY, 59% of widows and divorcees wish they had been more involved in long-term financial decisions and 74% don’t consider themselves very knowledgeable about investing. We believe women play a vital role in finances, whether they are handling them on their own or as part of a couple, and we want to provide educational resources whenever possible. When women become involved in their finances, they are taking a step towards being empowered to handle whatever situation they face in life, as married or single women. 

Above All, Know Your Investment Goals

Investors should follow the timeless principle of first understanding the purpose of their investments, then aligning their investments with those goals. For example, investing for the purchase of a vehicle in four years looks very different from investing to pay for your child’s college education in 10 years or from meeting retirement spending needs in 20 years. There are many investment vehicles, such as equities and bonds, that you can utilize to help you meet your goals in the appropriate time frame. 

Specific Considerations for Women

While most investment decision making is similar for men and women, women may want to consider a few scenarios specific to them: 

Even if numbers and analysis are not your interest or strength, having the foundation and support system to make wise decisions will help you have clarity and confidence around your finances. Overseeing your finances is somewhat like monitoring your physical health with your doctor. Often, it makes sense to hire a financial advisor as a partner in your financial health to help you navigate decisions and plans. Depending on your financial situation, similar to your physical health, taking on your finances can be daunting, but we have learned that the more engaged you become in the process, the less frightening it becomes and the more confident you become in making the decisions you have before you. 

At Ronald Blue Trust, we believe that women should be empowered by educating themselves on their personal and family’s finances so that they can make wise financial decisions. To learn more about our offerings for women, please contact your Ronald Blue Trust advisor or visit the Women section of our library or contact your Ronald Blue Trust advisor by calling 800.987.2987 or emailing BLOG@RONBLUE.COM.

We are honored at Ronald Blue Trust to have the privilege to serve women from all walks of life — professionals, mothers, daughters, retirees, widows, and students across the nation providing biblically-based wisdom for their finances. Our advisors work hard to provide as many useful resources as they can to guide you and your family in gaining clarity and confidence, and leaving a lasting legacy. Click here for more information!