It may still be more than 100 years before the global gender gap is closed, but the UK has made incredible progress. Many traditionally male-dominated fields, such as law and finance, now boast high female representation. Women comprise 43% of the financial services workforce and there are more women than men practising as solicitors.
Across these demanding industries, women are frequently juggling work and family commitments, and time becomes a sacred resource. In these circumstances, it’s understandable that managing your own money might take a back seat.
However, to achieve your long-term goals (such as a comfortable retirement) it’s crucial to organise your finances and develop a targeted wealth management strategy. As an investment manager, here are some answers to common concerns I hear from women in
law and finance.
Am I too late to start investing?
It’s never too late to start investing. Unsurprisingly, the earlier you start, the more you can potentially benefit from the positive effects of compounding growth. However, whether you’re in your 30s, 40s, 50s, or beyond, investing can help you achieve a range of financial goals.
With different ages come different priorities. These can include paying for school fees, repaying your mortgage, investing for retirement, or passing on wealth to the next
generation. An investment manager will discuss all your goals and address them through careful planning and prioritisation.
What should I invest in?
Investing, especially if you are new to it, can be overwhelming. There are a wide range of asset classes (bonds, equities, property, etc.) sectors, and geographies to consider. Plus, you must choose whether to invest directly (e.g. buying shares in a company) or through a
mutual fund, of which there are more than 130,000.
These decisions can be daunting. Each option has advantages and disadvantages, so the right strategy will depend on your circumstances and preferences. An investment manager will shoulder this burden and take responsibility for selecting the right investments for you.
Isn’t investing very risky?
Investment always involves some risk. Price fluctuations are inevitable, including short-term drops in value that take time to recover from. That’s why we typically recommend investing for at least five years.
However, having large cash sums sitting in the bank also carries risks, the biggest of which is inflation risk. With inflation running at nearly 10% currently in the UK, the purchasing power of cash is diminishing year-on-year at an astonishing rate. This is magnified when saving for decades.
While cash is an essential element of a sound wealth management strategy, an investment manager would help you save and invest at the optimal proportions to mitigate risks on both sides.
What comes next?
Having a good education and a high-flying career doesn’t make you immune to doubts and fears about investing. On the contrary, it can up the stakes by increasing your net worth, while limiting the time you have available to manage your wealth.
That’s why so many people working in law and finance can benefit from professional help. You’ve worked hard for your money, and an investment manager can help to ensure your money now works hard for you.
How can a professional investment manager help?
An investment manager will get to know you, the things you care about and your financial goals. In partnership with you, their job is to construct a bespoke investment portfolio – designed only for you, to help you achieve your goals over the long term.
It’s not a one-off conversation, it’s an ongoing relationship built on trust. And as your circumstances change, your investment manager will ensure that your portfolio evolves keeping your progress on track.
Please note: This information does not constitute financial advice or a personal recommendation. Investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future returns. You may not recover what you invest.
