By Nino Pavan, J.D., CFP®
More women over 40 are investing in their financial future. A new study from Fidelity shows that seven out of 10 women invested in the stock market in 2024, up 18% from 2023. The biggest bumps came from women 45 and older: Baby Boomers (23%) and Generation X (18%).
Despite operating as chief financial officers at home, women believe they lack knowledge of investing more often than men. However, many women want to learn more.
With confidence as a key to successful investing, you can gain clarity and control by talking to a financial advisor at Financial Designs. This guide can help you take your next steps.
Why Investing Matters Now More Than Ever
You may be in transition in your 40s, 50s, or 60s, changing careers or shifting from caring for children to caring for older relatives. Perhaps you’re recently divorced or widowed.
If you’re focused on financial freedom or long-term stability, investing now can put you on track for compounding that can deliver financial independence and comfort.
Potential Roadblocks You Might Face
More than half of women feel intimidated or overwhelmed by investing, according to the Fidelity study. And only a third say they would know how to invest $25,000 in the stock market, compared to 50% of men.
This confidence gap, where even smart, accomplished women second-guess decisions about money, comes from fading traditional roles. Women often manage household budgets, but they may not be included in decisions about buying insurance, saving, and investing.
What Investing With Confidence Looks Like
Investing with confidence is about living life on your terms, chasing your dreams, and knowing you can meet challenges head-on. You can gain that confidence through:
- Clarity: Understanding what you have and how it supports your goals
- Purpose: Getting your money in alignment with your goals
- Partnership: You don’t have to do it alone if you partner with a financial advisor to guide you
What some women lack in self-assuredness, they make up for in eagerness to learn, which can in turn fuel confidence.
5 Smart Moves for Women Over 40 Seeking Financial Clarity
Consider these five strategies to bring your financial future into clearer view:
1. Set Your Retirement Goal
Determine what retirement looks like to you. Then multiply your monthly budget by 12 and again by 25 to arrive at how much you’ll need to save to retire with a similar lifestyle.
2. Monitor and Adjust Your Investments
Review your investments to confirm they align with your values and goals, especially if you’ve had life changes. Monitor them periodically and make adjustments as needed.
3. Plan for Contingencies
Life doesn’t always go according to plan. However, anticipating unexpected turns can keep you on track toward your financial goals. This includes building an emergency fund to cover three to six months of expenses.
4. Simply Your Financial Life
Make an effort to consolidate accounts and organize related paperwork. Developing a system can go a long way toward engendering comfort about your finances.
5. Find a Trustworthy Advisor
You want to work with a financial advisor you can trust who genuinely wants to understand you and your values. Such a professional can help you grow your confidence as well as your returns.
Building Financial Literacy
You don’t need to know everything about investing, you just need to know enough. The more you take control of your financial life, the more empowered you’ll feel, creating a loop that boosts your confidence.
Consult a Financial Advisor at Financial Designs
By planning, saving, and investing wisely, you can have the financial future you want. Financial Designs works with you to prepare for a confident and fulfilling retirement.
To schedule a no-obligation consultation, call (909) 626-1642 or email fdc@fdcadvisors.com today!
About Nino
Nino Pavan is President and a CERTIFIED FINANCIAL PLANNER® professional at Financial Designs, a retirement planning firm in Claremont, California, with the mission of enabling individuals and families to financially prepare for and confidently enjoy their retirement years through goal-centered planning. With more than 30 years in the financial services industry, Nino is thankful for the opportunity to serve his clients by making the retirement process a stress-free one; he worries about their money so they don’t have to!
Nino holds a law degree from the University of Southern California, a Bachelor of Science in Telecommunications Management from DeVry Institute of Technology and has been a contributing advisor to Kiplinger. In addition to being a CERTIFIED FINANCIAL PLANNER® professional and Investment Advisor Representative, Nino has passed the Series 7, 24, and 63 securities exams and holds life and disability insurance licenses. He also conducts retirement and estate planning workshops for employees of major California companies. Outside of the office, Nino enjoys sports (regular and fantasy), traveling (specifically tropical destinations), walking, pickleball, church activities, and spending time with his wife Sherry and their two children, Derek and Sara. To learn more about Nino, connect with him on LinkedIn.
