Investing

Ain’t Never Too Late!

It was a moment I’ll never forget. I was on a book tour, giving a yet another speech, when an older woman, leaning on a cane, came up to me afterward.

She was 84 years old and had been married to a very wealthy physician who handled all the finances. But 10 years ago, he died, leaving her no money but a lot of debt. Turns out all his investments were all on margin, using borrowed money.

Before the shock even wore off, she found a financial advisor, started taking classes, and learned about investing.

Why I Have a Problem with “Rich”

My passion is helping women become wealthy. I notice, however, I rarely, if ever, use the word ‘rich.’

I remember when, decades ago, David Bach sent me a copy of Smart Women Finish Rich. My first book had just been published, one of the earliest finance books geared to women, and he wanted to talk.

I loved what he wrote, but the word, ‘rich’ turned me off. I couldn’t understand why.

Then, last week, I received a newsletter from Nick Maggiulli, titled: Rich vs Wealthy: A Comprehensive Guide to Different Financial Lifestyles.

Finally, I realized why ‘rich’ never resonated.

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A Master Class in Wealth Creation…Based on Kick-Ass Quotes

I love quotes. These tiny bits of timeless wisdom convey vast amounts of knowledge in a mere sentence or two.

This week, I’ve boiled down the secrets to successful investing into a series of pithy expert sayings. Consider it a Master Class in wealth creation.

Let’s start with economist Jeremy Siegel, “Fear incites human action far more urgently than does the impressive weight of historical evidence.” 

Financial decisions made from fear (vs knowledge) never turn out well. As history reveals, after every crash, the market eventually surges. Yet fear has us selling at a loss, missing future gains.

According to wealthy industrialist J. Paul Getty, fear can be a buy signal. “Buy when everyone else is selling and hold until everyone else is buying.”

That’s not just a catchy slogan. It’s the very essence of successful investing.

Baron Rothschild was even more succinct: “The time to buy is when there’s blood in the streets.”

Our biggest risk is not the market tanking, but our emotional reaction.

As acclaimed investor Benjamin Graham pointed out: “The investor’s chief problem — and even his worst enemy — is likely to be himself.”

Women Are Different Than Men

When it comes to women investing, I’m reminded of a quote attributed to Einstein: “If you ask a fish to climb a tree, she’ll always feel stupid.”

Same is true with money. If you try to approach finances like a man, you’ll always feel like a fish out of water.

So instead of trying to do it ‘their way,’ it’s time we value the feminine perspective. Let’s look at 5 ways the genders differ:

#1: Our Impetus for Investing

Men are very motivated by profit, perks, personal gain. No matter how much they have, amassing more is a powerful incentive.

Not women. Once we’re financially stable, we’re rarely motivated by money. Sure, we want to profit. But what really inspires us is helping others.

How Much Risk Can You Tolerate?

Risk tolerance. You’ve probably heard those words bandied about when talk turns to investing. But do you know what they mean?

Risk tolerance is generally defined as the ability to stomach large swings in the value of your investment portfolio. Because the market, by nature, is very volatile, understanding your risk tolerance is vital for making prudent decisions.

There are 3 factors to help you figure it out.

Men vs Women

Note to the financial industry: women are not men. Even though advisors are tripping over each other trying to woo women’s business, they are talking to us just like they do men. Big mistake.

As Einstein once declared, “If you ask a fish to climb a tree, she’ll always feel stupid.” Same is true with money. If you try to approach finances like a man, you’ll always feel like a fish out of water.

True, money knows no gender. But women think and communicate very differently than men.  Apparently, the financial world hasn’t gotten the memo.

Let me explain 3 important differences between the sexes.

Inflation Protection

If you can fog a mirror, you’ve probably heard. Inflation is the highest it’s been in decades.

Inflation is a ravenous creature that devours our dollars like a caterpillar on a leaf–slowly, methodically, little bits at a time. But this recent bout seems more like a famished elephant.

The only way to counter the ravages of rising prices is to make sure at least some of your savings is working harder than it would in a bank, where it earns next to nothing.

In normal times that means the stock market. But with markets in turmoil, many of us are looking for safer alternatives. That’s why I got so excited when I read Jason Zweig’s column in this week’s Wall Street Journal.

“Fortunately, raising the return on your cash is easier than ever,” he declared. “The two best choices are money market funds and U.S. Treasury securities.”

The Secrets to Wealth Building…Revealed At Last!

“What are the secrets to being wealthy?” she asked, a tinge of desperation in her voice. “I feel like rich people know these secrets that I never learned.”

She was right. There are Secrets to Creating Wealth. And I understood her frustration. I struggled with this same question for years, never getting a satisfactory answer.

 It took me forever to figure those secrets out. And when I did, my financial proficiency (not to mention my self-confidence) skyrocketed.

The truth is, very few people actually understand how to become a Wealth Builder. Everyone, however,  knows how to be a Consumer.

The Hidden Danger of Higher Earnings

I noticed a disturbing theme in my conversations with successful women. I call it the Illusion of Affluence. Whopping wages can be deceptive and dangerous.

I see it repeatedly: High earners spending too much, saving too little, or plowing all profits back into their business. Their ample earnings gives them the appearance, but not the security, of affluence.

Even if they can easily make a bundle whenever they want, high earners are as vulnerable to hard times and sudden change as anyone else.

Absolutely, women making big money are to be applauded. But the real measure of success isn’t what comes to you…it’s what stays with you (i.e. your net worth—the sum total of what you own minus the sum total of what you owe). 

Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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