We asked, and you answered! Yesterday, we asked on our Facebook page about your greatest financial fears. We got some really honest and thought-provoking responses, from getting out of debt to investing.
Have another fear to share? Leave us a comment or add to the list on our page!
A number of LearnVesters said that they worried about being “broke when I’m old and want to retire.” A legitimate fear. We want to be able to enjoy our very own nest eggs, which is why it's important to set up for your future now! It is important to save and cut back when you’re young. It’s hard to think about retirement right now when we don’t feel old, but it’s critical to start saving today. We also go through how to decide between a 401(k) and an IRA, and how to set up both.
One LearnVester admitted that she fears losing her job. This is a concern for many, many people today, especially in the current job market. If this happens to you, never fear! We are here for you, so take a deep breath. We also think you should get your emergency funds in shape if you haven’t already.
What about investing? Do you fear you’ll never be comfortable investing your money at a medium-risk level? One LearnVester admits that she does. Risk represents the possibility that an investment’s actual return will be different than what you had expected or hoped, it would be. The bigger the risk, the bigger the possibility of losing some, or all, of your principal investment, the money you initially invested. The flipside is that the riskier investments also tend to offer the opportunity to earn better returns. This is why financial advisors usually suggest including some riskier investments in your portfolio. But it’s important to be comfortable with your investments, which is why we think they should match your personal threshold for risk-taking, in addition to matching your timeline and what you want to make.
Yes, there are always risks when we are talking about investing. But when done properly and thoughtfully, you’re taking educated risks. Do your research in a company before investing in them. Also, buying stock is not the only way to invest. If you don’t feel comfortable ‘stock picking,’ stock mutual funds could be a better choice for you.
Check out our Facebook page to see what other women are thinking about when it comes to their finances. Share your financial fear!