Investing in Your 20s, 30s, and Beyond – Age-Specific Strategies for Women

Episode Transcript

Speaker 1 (00:00):
Welcome back to the wealth Wise Woman podcast. I'm your host, Anna,
and as always, a quick reminder, this podcast is for
educational and informational purposes only. It is not financial advice.
Always do your own research and consult with a licensed
professional before making any financial decisions. Today, we're diving into

(00:22):
a topic that empowers women to build wealth at every
stage of life. Investing in your twenties, thirties, and beyond
e age specific strategies for women with challenges like the
gender pay gap, caregiving responsibilities, and longer life spans. Women
need tailored investing strategies to maximize wealth across decades, whether

(00:43):
you're just starting your career, balancing family and finances, or
catching up later in life. This episode will provide age
specific tools to grow your money confidently. Let's explore how
to invest smartly at any age and secure your financial future.
In this comprehensive eight part episode will cover why investing

(01:05):
is critical for women at every age, The power of
starting early, investing in your twenties, building momentum investing in
your thirties, catching up or scaling up investing in your
forties and fifties, investing later in life Strategies for your
sixties and beyond. Overcoming gender specific investing barriers. Real world

(01:26):
examples of women investing across ages. Action steps to start
or optimize your investments today. Let's get started and make
investing work for you, no matter your age. Part one.
Why investing is critical for women at every age. Investing

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is a cornerstone of financial independence for women, addressing unique
challenges gender pay gap. Women earn eighty two cents for
every dollar a man earns, leading to a four hundred
one thousand dollars one million dollars lifetime earnings gap. Investing
amplifies lower incomes through compound growth, longer life spans. Women

(02:10):
live five seven years longer than men, needing one million
dollars one point five million dollars to fund twenty thirty
years of retirement, including two hundred dollars zero zero zero
plus and health care costs care giving breaks. Women often
pause careers for caregiving, reducing savings. Investments provide passive growth

(02:32):
during income gaps. Financial confidence societal norms discourage women from investing,
but starting small builds expertise and empowerment, wealth building potential
investing dollar one hundred slash month at seven percent from
age twenty five grows to one hundred forty nine thousand

(02:53):
dollars by sixty five versus twenty four thousand dollars in
a savings account at one percent. Example, a woman investing
dollar two hundred slash month from age thirty at seven
percent build six hundred thousand dollars by sixty five, covering
retirement needs despite earning less than men. Investing at any
age helps women overcome systemic barriers and achieve security and freedom.

(03:18):
Part two The power of starting early investing in your twenties.
Your twenties are the golden window for investing due to
time and compound interest. Why it matters. Starting at twenty
five versus thirty five can double your wealth by sixty five. Example,
dollar one hundred slash month at seven percent from twenty

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five grows to one hundred forty nine thousand dollars by
sixty five from thirty five only seventy six thousand dollars.
Strategies start small, invest twenty five dollars dollar fifty slash
month in a roth ira via low cost ETFs for
example vo zero point zero three percent fees using apps

(04:00):
like Betterment Leverage four oh one k contribute to an
employer four oh one K, especially with matches. For example,
four percent of forty thousand dollars equal sign one thousand,
six hundred dollars free max twenty three dollars zero zero
zero year twenty twenty five. Build an emergency fund, save

(04:22):
one thousand dollars three thousand dollars in a high yield
account four point five percent apy To protect investments, learn basics,
read broke millennial takes on investing fourteen dollars or follow
at her first one hundred k on X For beginner
friendly tips, focus low risk, long term growth. For example,

(04:43):
index funds to maximize time challenges, low income student debt
solution pay minimums on low interest debt five percent and
invest dollar twenty five slash month. Example, Laila twenty five
earns forty thousand dollars and invests dollar fifty slash month
in a roth IRA and dollar one hundred slash month

(05:04):
in a four oh one K with a four percent match.
By sixty five per dollar one hundred fifty slash month,
grows to four hundred fifty thousand dollars at seven percent
starting in your twenties. Leverages time making wealth building easier
despite lower earnings Part three, Building momentum Investing in your thirties.

(05:25):
Your thirties are about balancing career growth, family, and wealth building.
Why it matters. Income often rises, but expenses for example
kid's mortgage Increase investing now builds a foundation for retirement
or financial independence. Strategies increase contributions, save ten fifteen percent
of income three hundred dollars dollar six hundred slash month

(05:47):
on fifty thousand dollars in a four to oh one
k or wroth ira example, dollar four hundred slash month
at seven percent from thirty five equal signed six hundred
thousand dollars by sixty five. Diversify investments. Add real estate
for example dollar five hundred slash month via fundrise or

(06:08):
dividend stocks for passive income. Pay down high interest debt,
clear credit card debt. Give fifteen percent to free up
cash for investing. Example. Paying off five thousand dollars at
eighteen percent saves dollar nine hundred slash year. Side hustles
earn one hundred dollars dollar five hundred slash month. Freelancing

(06:28):
for example, upwork and invest fifty percent. Learn more read
The Simple Path to Wealth seventeen dollars for index. Fund
strategies focus balance growth stocks and stability bonds real estate
while managing family costs challenges caregiving, debt. Solution automate dollar

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fifty slash month investments and budget for childcare. Example, Preya
thirty five earns sixty thousand dollars invest dollar three hundred
slash month in a four to oh one K with
a four percent match and dollar one hundred slash month
in ETFs. She clears three thousand dollars credit card debt,
and by sixty five her dollar four hundred slash month

(07:15):
grows to nine hundred thousand dollars. Your thirties are for
accelerating wealth while navigating life's demands. Part four, Catching up
or scaling up investing in your forties and fifties. Your
forty's and fifties are critical for catching up or scaling
wealth as retirement nears. Why it matters. Higher earnings and

(07:38):
fewer caregiving demands for some allow aggressive investing, but time
is shorter. Aim for six x salary saved by fifty
three hundred thousand dollars on fifty thousand dollars. Income strategies
max out retirement accounts contribute twenty three dollars zero zero
zero well year two four to oh one K and

(07:59):
s seven thousand dollars to ROTH IRA over fifty add
seven thousand, five hundred dollars catch up to four oh
one k and one thousand dollars to IRA. Invest aggressively
allocate seventy eighty percent to stocks. For example VTI for
seven million, eight percent returns. Example one dollar zero zero

(08:21):
zero month from fifty equal sign three hundred fifty thousand
dollars by sixty five. Real estate buy a two hundred
thousand dollars rental with twenty percent down forty thousand dollars
for one dollar zero zero zero month. Income and appreciation.
Reduce expenses, downsize housing or cut dollar one hundred slash
month subscriptions to invest more upskill for income, take courses

(08:46):
fifty dollars two hundred dollars on utime to boost earnings.
Investing raises five dollars zero zero zero year. Focus growth
and income diversification to close savings gaps, challenges, late start
caregiving solution, use catch up contributions and automate dollar five
hundred slash month. Example Sophie fifty earns eighty thousand dollars

(09:11):
and invests dollar eight hundred slash month in a sepira
and dollar two hundred slash month in ETFs. Her one
dollar zero zero zero month grows to three hundred fifty
thousand dollars by sixty five plus two hundred thousand dollars
home equity. Your forties and fifties are for aggressive action
to secure retirement. Part five. Investing Later in life Strategies

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for your sixties and beyond. Your sixties and beyond focus
on preserving wealth and generating income. Why it matters retirement
looms and women need income to cover twenty thirty years
including healthcare. Aim for eight ten x salary saved four
hundred thousand dollars five hundred thousand dollars on fifty thousand

(09:58):
dollars strategy Please shift to income investments. Allocate fifty sixty
percent to bonds or dividend ETFs for example SDHD three
percent yield for steady income twenty dollars zero zero zero
year on five hundred thousand dollars. Maximize social Security delay
benefits to seventy for twenty four percent higher payouts for example,

(10:21):
two dollars zero zero zero month versus one thousand, six
hundred dollars at sixty seven use hsas, save four dollars
one hundred fifty year in a health savings account for
tax free medical expenses. Downsize assets, sell a three hundred
thousand dollars home for a two hundred thousand dollars condo.

(10:43):
Investing one hundred thousand dollars for income, Stay engaged, consult
part time dollar five hundred slash month to supplement income,
and invest focus capital preservation and reliable income challenges. Limited
time health costs solution prioritize low risk investments and hsas. Example,

(11:05):
EMMA sixty two shifts four hundred thousand dollars to sixty
percent bonds yielding twelve dollars zero zero zero year. She
delays Social Security to seventy two dollars two hundred month
and saves two dollars zero zero zero year in an HSA.
Ensuring comfort your sixties are for securing income while protecting wealth.

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Part six. Overcoming gender specific investing barriers. Women face unique
obstacles to investing. Here's how to overcome them. Lower income
the pay gap limit savings solution start with dollar twenty
five slash month in a roth IRA and negotiate raises

(11:51):
two thousand dollars five dollars zero zero zero dollar year,
caregiving breaks, career pauses reduce contributions. Solution invest ten dollars
dollar twenty slash month during breaks, catching up with dollar
five hundred slash month later. Confidence gap societal norms discourage investing.

(12:13):
Solution read Get Good with Money fifteen dollars or join
X groups like at Money with Katie for support. Time constraints,
family demands limit research time. Solution use robo advisors for
example wealth Front zero point two five percent fees for
automated investing risk aversion. Women may fear losses. Solution start

(12:36):
with low risk ETFs and learn via free webinars for
example Bigger Pockets. Example. Clara thirty five, felt intimidated by investing.
She joined a women's finance group on X, started with
dollar fifty slash month in a robo advisor, and grew
to dollar two hundred slash month, building fifty thousand dollars
by fifty five. A gendered perspective, women's lower earning and

(13:00):
rolls require accessible, low effort investing options to build wealth confidently.
Part seven Real world examples of women investing across ages.
Here are three hypothetical women who invested successfully. Llila twenty seven,
retail worker Leilah invested dollar fifty slash month in a

(13:21):
roth IRA and dollar one hundred slash month in a
four oh one K with a four percent match. By
sixty five, her dollar one hundred fifty slash month grows
to four hundred fifty thousand dollars at seven percent funding
travel dreams. Amara thirty eight, nurse Amara saved dollar three

(13:41):
hundred slash month in a four oh one K and
dollar one hundred slash month in a fundriise real estate account.
By sixty five, her dollar four hundred slash month grows
to seven hundred thousand dollars plus one hundred thousand dollars
in real estate equity. Sophie fifty five, consultant. Sophie used
catch up contributions one dollar zero zero zero month to

(14:04):
sep IRA and invested dollar two hundred slash month in
dividend ETFs. By sixty five, her one dollar two hundred
month grows to two hundred fifty thousand dollars with two
dollars zero zero zero month social security. These stories show
that age specific strategies make wealth building achievable for women.

(14:25):
Part eight. Action steps to start or optimize your investments today.
Ready to invest for your future. Here's a tailored plan.
Assess your stage. Determine your age and goals for example,
five hundred thousand dollars by sixty five. Use a retirement
calculator for example investor dot gov to estimate savings needed.

(14:48):
Start or increase investing twenties twenty five dollars dollar fifty
slash month in a roth Ira Vanguard, thirty's two hundred
dollars dollar four hundred slash month, and four one hundred
and one k IRA forty s slash fifty s five
hundred dollars one dollar zero zero zero month including catchups

(15:09):
sixties dollar five hundred slash month in bonds, dividends, automate contributions,
Set up auto transfers via Fidelity or betterment to ensure consistency,
cut expenses. Reduce fifty dollars dollar one hundred slash month
in non essentials for example, subscriptions using mint redirect to investments,

(15:31):
boost income. Start a one hundred dollars dollar two hundred
slash month side hustle for example Etsy and invest fifty percent.
Learn continuously read the Simple Path to Wealth seventeen dollars
or follow at Bigger Pockets on X. Build a safety net.
Save one thousand dollars three thousand dollars in a high
yield account to protect investments, track and connect. Monitor investments

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quarterly with personal capital. Join women's finance groups on X
for exile. Example at Women in Finance Example plan, A
thirty two year old earning fifty thousand dollars invests dollar
two hundred slash month in a four oh one K
with a four percent match and dollar fifty slash month
in a roth IRA. She cuts dollar fifty slash month

(16:17):
in spending, investing dollar three hundred slash month total by
sixty five, her savings grow to seven hundred thousand dollars
at seven percent. Pro tips. Use free tools like Vanguard's
Investor Questionnaire to assess risk tolerance. Listen to investing podcasts,
for example the Money Nerds on Spotify. Celebrate milestones for

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example five thousand dollars invested with a five dollars treat.
Investing in your twenties, thirties, and beyond is a powerful
way for women to overcome the gender pay gap. Caregiving
breaks and longer life spans to build lasting wealth By
tailoring strategies to your age. Starting small in your twenties,
scaling inn your thirties, catching up in your forty s

(17:02):
slash fifty ees, or preserving in your sixties, you can
achieve financial independence. Start now, stay consistent, and leverage education
and community to stay motivated. Your investments are your path
to freedom, security, and a life on your terms. Take
the first step today to make your wealth grow. Here's

(17:22):
your action plan to start today. Calculate your investment goal
using a free online calculator. This week, open or contribute
twenty five dollars dollar one hundred slash month to a
roth ira or four to oh one k and automate it.
Cut twenty five dollars dollar fifty slash month in non
essential spending and redirect to investments. Join a women's financial

(17:45):
group on x or read an investing book for inspiration.
Tune in to next week's episode for tips on diversifying
your investment portfolio. The best day to start investing was yesterday.
The second best is today. Don't let barriers stop you
build your wealth at any age. Thanks for joining me
on the wealth Wise Woman podcast. If this episode sparked

(18:08):
your investing journey. Share it with a friend ready to
grow their wealth Until next time, Keep building your wealth
wisely