Ellevest CEO Sallie Krawcheck’s Best Investing Tips for Women Who Want to Grow Their Money

Introduction

Investing your money is important for anyone who wants to build wealth over time. However, research shows that women often face unique challenges when it comes to investing compared to men. Sallie Krawcheck, co-founder and CEO of Ellevest, is on a mission to close this investing gap with her digital investing platform designed specifically for women’s financial needs.

In this blog post, we’ll share Sallie Krawcheck’s best tips for how women can become savvy investors and grow their money.

Start Early and Invest Regularly

One of the key principles Sallie stresses is that investing is a marathon, not a sprint. She advises women to start investing as early as possible, even if it’s with small amounts of money. This allows your investments more time to compound and grow through market gains.

Invest in Low-Cost Index Funds

Sallie recommends investing in low-fee, broad market index funds rather than picking individual stocks. Index funds provide instant diversification and often outperform actively managed funds over the long run.

Understand Your Risk Tolerance

It’s important to invest in a portfolio that matches your individual risk tolerance. More conservative investors may want a higher allocation in bonds, while more aggressive investors can weight their portfolio more heavily toward stocks. There are online questionnaires that can help determine your risk tolerance.

Automate Your Investing

One way to stay consistent with investing is to set up automated transfers from your bank account into your investing account on a scheduled basis. Even small amounts contributed regularly can add up over time thanks to compound growth.

Tune Out Short-Term Market Fluctuations

Sallie emphasizes tuning out the market’s ups and downs and sticking to your long-term investing strategy. It’s normal for the market to experience corrections periodically, but by staying invested you’ll be positioned to benefit when stocks recover.

FAQ

What is the investing gap?

The investing gap refers to research showing that women often invest less money than men and allow too much cash to remain in savings instead of investing it. This leads women to miss out on long-term compound growth.

How much money do I need to get started investing?

Many online brokers now allow you to open an account and start investing with no minimum deposit. You can begin by investing small amounts you can afford like $20-50 per month into index funds.

What percentage of my income should I invest?

Financial experts often recommend saving at least 10-15% of your income for retirement investments. But any amount you can afford, even if it’s only a few dollars per month, is better than nothing.

What are the main differences between stocks and bonds?

Stocks offer an ownership stake in a company while bonds are debt issued by companies or governments to fund operations. Stocks have higher long-term return potential but more volatility. Bonds provide more consistent income but lower total returns over time.

Should I choose a robo-advisor or invest on my own?

Robo-advisors can be great for beginning investors since they automate portfolio management. But investing on your own into low-cost index funds is also a solid approach. Do your research and choose the option you feel most comfortable with.