Wachovia Women and Money Guide to Basics of Investing

Studies have found that women in general are far more concerned with the fear of losing money (risk) than the chance of gaining it (return). Women tend to blame themselves if an investment loses money, whereas men will blame weak markets, bad advice, or bad luck. Because of this fear of losing money, too many women put their savings into more conservative, easy-to-understand investments—like savings accounts or U.S. Treasuries.

Longer life expectancy equals larger earnings

The way your money may grow through compounding is the greatest single benefit a long-term investment plan can offer you. When you invest, you not only have the potential to earn money on what you've contributed, you also have the potential to earn money on your earnings. This is especially important for women since they tend to live longer and will need greater assets to rely upon in retirement. Compounding is one way women can put their longer life expectancy to work for them.

Spread the Wealth

When it comes to investing, the old adage holds true—don't put all your eggs in one basket. When your investments are diversified, or spread across different asset classes or types of securities, they work together to help reduce risk. Mutual funds, which invest in a broad range of different securities, are designed to be well-diversified investments. Most investment experts recommend that individual investors combine growth-oriented investments like stocks or stock funds with more stable, fixed-income investments like bond and money market funds to help reduce risk and increase growth potential. Just what balance works for you depends on your age, risk tolerance, and financial goals. A Financial Advisor can help you determine the right mix for your situation. Please remember that diversification cannot eliminate the risk of fluctuating prices and uncertain returns.

Stocks Versus Other Investments

While it's never a good idea to put all of your assets in the stock market, many women tend to invest too little in stocks. You may end up with an investment plan that doesn't offer the growth potential to meet your needs. Keep in mind that you assume greater risks when you invest in stocks, and that past performance is no guarantee of future results. Also, there is no guarantee that your investment will increase in value. However, the benefits of investing in stocks may outweigh the risks, especially since time is on your side.
Risk Calculator

It's important to begin an investing program as soon as you can:

A Little at a Time

One of the most effective and convenient ways to take advantage of the power of time is to invest through a systematic investment program. Most mutual fund companies let you make small, regular investments—as little as $50 a month—from your paycheck or bank account into the mutual fund(s) of your choice. It's not only a great way to discipline yourself to invest, it eliminates the worry of investment timing. Because your purchases are spread out over many market cycles, you don't have to fear buying at a bad time. When considering a systematic investment plan, you should consider your ability to make regular investments through periods of fluctuating prices. A regular investment program neither provides assurance of making a profit nor guarantees against a loss in a declining market.

It Can Really Add Up - Look what investing just $100 a month can add up to over time:

Chart assumes $100 invested monthly for 10, 20, & 30 years and compounded at 8%. This hypothetical example is for illustrative purposes only and does not represent investments in any particular mutual fund. Actual returns and principal value will fluctuate.

Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

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WHAT ARE THE BASICS OF INVESTING?

Longer life expectancy equals larger earnings

Spread the Wealth

Stocks Versus Other Investments

It's important to begin an investing program as soon as you can:

A Little at a Time