Certainly, investing an amount of money for any period of time in the stock market does come with risks. But so does leaving your money languishing in a cash ISA, which runs the risk of not accumulating enough to live on later in life.
Fortunately, there is a much wider range of investment products and bespoke services available now. This means that taking on a little bit of risk does not have to be to the detriment of that safety net.
Talk to your investment manager about their bespoke service. This enables them to tailor your investment portfolio to meet your preferred risk level. You might be seeking a regular income from your investments, or you may want to accumulate wealth but with exposure to lower risk assets – the choice is yours.
If, at any time, you decide you would like to take more risk or bring your level of exposure to risky assets down as you near retirement, for example, then you can do so. There is far more flexibility when it comes to investing than you might have believed.
Prioritising your principles
Men’s and women’s views also diverge on the importance of aligning their investments to their values.
A report by WealthiHer Network found that 67% of women interviewed wanted their wealth to have meaning and to make a positive impact, with 65% stating that ethical investments were important to them.
While 44% of men would consider investing in a product that was not aligned with their environmental and social beliefs, only 33% of women would, according to the Quilter Cheviot Women and Wealth Management Strategic Report.
These days, investing to grow your wealth does not have to come at the expense of any environmental, social and governance issues that are important to you. Especially when it comes to leaving a legacy for your children or grandchildren.
The investment industry has responded to growing investor demand for products that better reflect their desire to create a positive impact with their wealth. This means that your ethical and sustainable principles are not compromised when you invest, and neither are the returns you receive on your investment.
In fact, investing responsibly goes hand-in-hand with being exposed to less risk through your investments. If your portfolio is invested in companies that do not address environmental, social and governance issues, they are inherently a more risky investment.
For women, this means that whatever your risk appetite, your desired outcomes and your investment values, there are plenty of options.