Mar 9, 2019
If you could fix gender inequality would you?
It’s admirable work to get governments and employees to recognize and fix gender inequality, but are you really willing to bet your financial future on them?
Right now, in 3 simple steps, you can take the most effective step in closing the gap — investing.
Investing is NOT complicated.
It is often made to seem so by those with an interest in keeping it exclusive.
It’s the jargon. Just like when one doctor says you have a cold and another says you have an upper-respiratory bronchial infection.
So, we stripped away the jargon to get you investing in 3 quick & simple steps.
The most important rule in investing is to Start.*
Time is money in the world of investing, and the earlier you start the better.*
A good investment right now is more valuable than a perfect one later.
Waiting has a significant negative impact on investment returns, as the chart illustrates.
Follow our guide below to invest in 3 quick and simple steps.
*In a perfect world, you already have an Emergency Fund and no high-interest debt. Understand why it’s important and how to balance competing goals.
HOW TO INVEST IN 3 SIMPLE STEPS
- Open a Brokerage Account
- Link & transfer money from your Bank Account to your Brokerage Account
- Buy an Index Fund*
*An Index Fund with a low management fee, an established track record, and no transaction costs is a smart, quick way to invest. Learn why and how to invest with index funds.
Each step is explained fully below with a few links to make it quicker!
STEP 1: Open a Brokerage Account (for retirement, open an IRA)
TIP: Where you open your account does not matter, but fees do!
Check for transaction (buy and sell), monthly and account fees.
Link to Vanguard, Fidelity, Schwabe
TIP: If you prefer an app, choose one that does not require you to spend to invest! Investing should be a stand-alone priority, not conditioned on spending. Again, check for any fees.
STEP 2: Link your bank account to your brokerage and transfer money
Step-by-step instructions on how to link and transfer will be provided when opening your brokerage account.
STEP 3: Enter a “Buy” order to purchase your selected investment
HOW TO CHOOSE AN INVESTMENT
For most people, a Total Stock Market Index Fund with a low management fee, an established a track record, and zero transaction fees is a good, quick, simple way to invest. Learn how and why to invest with index funds.
The goal of investing is to provide for the life your want, not disrupt it.
Many people spend a lot of time — too much — worrying about their investments — both before and after they buy. They pick one or a few “shining stars” and then hope, actually worry.
Often, fear of loss and other inherent biases cause people to sell and buy at the worst possible times, resulting in high transaction costs and missed opportunity.
Research confirms the best course is to depersonalize, diversify, and enable time to be on our side. “Time in the market” has consistently trumped “timing the market,” just as market indexes have outperformed investment managers.
The goal of investing is to provide for the life your want, not disrupt it.
Index funds help you avoid unnecessary worry by providing broad market exposure with one investment and professional management at a low cost.
For the more nuanced investor, there is a universe of funds from which to meet investing interests, including sustainable and impact investing, commodities, real estate, and alternatives, as well as the option of buying individual company stock.
No matter how you choose to invest, there is only one steadfast rule: START.
We are building the first on-demand, AI-optimized, personalized financial decision engine. Visit MyDecideGuide to include your top financial question.
To understand why women need a different financial life plan to maximize wealth visit WIN
This content of this post is provided for educational purposes only. It is not and shall not be construed to be investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
