A study by Prudential this year found that only 19% of women feel very comfortable letting a financial advisor guide their plans.
In a way, that’s understandable. This survey and countless others also find that many women lack confidence when it comes to investing matters. And when you don’t feel on solid ground, it’s hard to turn over the reins to someone else.
And yet, some added financial knowledge or guidance can make a huge difference in terms of how much money you have to live on, in your 60s, 70s and 80s.
Let’s say you’re 35, and invest $5,000 a year in an IRA, for 30 years. And you get, say, a 5% return.
You’d end up with about $332,000.
Now, let’s say you get some professional guidance over the years—or you acquire your own financial savvy, which leads you to make some wise investment choices, improve your asset allocation, i.e. the mix of assets in your portfolio—and you get a 7% return.
You’d now have $472,000.
Nothing is guaranteed, of course. The point is that the cost of insecurity is high. And the potential gain from professional input or your own know-how could make an immense difference to your quality of life when you’re older.
|Weigh in. Do you have a professional advisor? Has he or she made a demonstrable difference in the growth of your portfolio?|