Safe Ways To Invest

Unquestionably, the safest place to invest your money is in interest-bearing accounts offered by banks and credit unions. Regular savings accounts, money market accounts and certificates of deposit (CDs) are insured by the FDIC or National Credit Union Authority. Because CDs are time deposits, there is some interest rate risk. If interest rates go up after you purchase a long-term CD, you may find yourself stuck with lower-than-market earnings until the CD matures.

Diversification

One important way to reduce risk is through diversification of your portfolio. If you have investments in several securities, most will do well, even though you may lose money on an occasional bad investment. This is one of the advantages of investing in mutual stock or bond funds. These funds are large, professionally managed portfolios of securities and by their very nature provide a highly diversified investment.

Relatively Safe Stocks

 Investing in any equity security stocks does carry risk and almost always more than for bonds and savings accounts. However, there are low-risk categories of stocks that offer good returns and the chance of equity growth. Preferred stock is a special type of security that has a guaranteed dividend that must be paid before dividends on common stock shares. In addition, preferred shareholders are paid off first in the event the company liquidates. Preferred stocks thus pay good dividends and carry less risk than common stock but usually don't have as much equity growth potential.

Open a money market mutual fund

Open this account to absorb any extra income that you can eventually liquidate for a house payment or other major purchase. Money market mutual funds do not have FDIC insurance, but they invest in cash-like vehicles that carry little risk, such as treasury bills and bonds.

Conduct your own due diligence. 

 Avoid fraud, don’t rely on appearances, fancy offices, nice suits and power lunches. You’re seeing what others want you to see, and it could be a lie. You must conduct your own due diligence into professional service providers and any proposed offshore financial activity.

Don’t rely on secrecy. 

 Dealing with an offshore promoter who claims that he can help hide your money from tax authorities is an invitation to blackmail. The promoter knows that, if you break the law, you’re unlikely to ask a court to help return your assets when they disappear. The law is clear. It says that any U.S. person whether a citizen or resident alien is liable for annual income taxes on income earned anywhere in the world.

 If it’s too good to be true, it probably isn’t true. 

 Believing and consistently applying this saying is the most important precaution of all. Unrealistic profits, barely believable promises or a vague feeling that you’re being “led on” are all indications that whatever deal you’re being “pitched” is best avoided.

Top 5 Professional Networks for Women in Finance

The great thing about being a woman in a man’s world is that it brings us closer together. The glass ceiling is difficult and annoying, but women in finance are so scarce that the connections made with each other are usually strong and supportive. Here is a list of clubs some with chapters around the world, others entirely based on the web:

Women’s Bond Club
Based in: New York
One of the oldest of its kind (est. 1921), the Bond Club focuses on mentoring and education. Events range from community service to resume workshops. Their relationships with significant corporations and non-profits help support women in the field. Membership is diverse, with women holding jobs in consulting and technology, all in the area of finance.

Financial Women’s Association
Headquartered in: New York
FWA focuses on bringing accomplished women together to recognize each other’s achievements, trade information and improve one another to become the best in their fields. Past president, Kristin McDonough, says, “Seasoned FWA members say that exposure to this richer network has resulted in consulting engagements, client referrals, emerging opportunities, and the courage to leap from the corporate into both the entrepreneurial arena or not for profit administration.”

100 Women in Hedge Funds
Based in: London, but members are from all over the world
A global association of more than 10,000 women, 100 Women in Hedge Funds focuses on education progression and philanthropy.

Women on Wall Street
Based in: New York
Sponsored by Deutsche Bank, WOWS is an event rather than an organization. They host a conference in New York featuring great keynote speakers, usually top women at places like Goldman Sachs and Deutsche Bank.

City Women’s Network
Based in: London
For those of you unfamiliar with London, The City is their Wall Street equivalent. CWN states that they aim to: “provide a strong network of contacts” that generally continued growth of professional women in London.

2010 Top Women in Finance

After perusing a record number of nominations for the 2010 Top Women in Finance award, Finance & Commerce announced the 50 winners.

The list of winners for the 10th-annual awards, presented below, is impressive.

It includes principals, partners, executive vice presidents, CFOs, CEOs and managing directors at not only financial institutions and lenders but also businesses small and large throughout Minnesota.

And this year, for the first time, F&C has chosen nine women as honorees for the second time; these nine have entered the Top Women in Finance award program’s new “Circle of Excellence.”

They are (with the years they first won):

Regina Barr, founder/CEO, Red Ladder Inc. (2008)

Jeanne Crain, executive vice president, M&I Marshall & Ilsley Bank (2007)

Mary Gabler, Central Region community development manager, Wells Fargo Bank (2007)

Diana Garvis Purcel, chief financial officer, Famous Dave’s of America Inc. (2005)

Robyn Hansen, attorney and shareholder, Leonard, Street and Deinard (2007)

Nicole Middendorf, president and LPL financial adviser, Strategic Financial Inc. (2007)

Julie Tanaka, principal, Compendium Business Strategies (2006)

Mary Tjosvold, CEO, Mary T. Inc. (2005) and,

Mary Twinem, chief financial officer, Buffalo Wild Wings Inc. (2004).

Also on the list are four women who founded their own companies, a stringent test of financial will and skill.

Does Money Make One Happy?

 Money is kind of weird sometimes, it does get you what you want and other times, it does not help at all. But how much money will truly make one happy? Turns out a crew of researchers has actually figured that number out.

A new study shows the further a person’s salary falls below 75,000 a year, the more unhappy they are. That puts most women behind the 8-ball. The median income for women with a bachelor’s degree runs less than $40,000 bucks per year. Men at the same level make nearly $60,000 a year.

Money can equate with -- for some people -- with power, with security. Experts say women can boost pay even in this economy. The top tip: justify a pay raise by showing-off your accomplishments. Second: work smart -- those who impact the bottom line get the biggest bonuses. And lastly: know the "going rate" for your position. Researchers say making less money makes people feel more helpless, especially in terms of health and relationships. While the U.S. ranks 5th amongst 151 nations in terms of happiness of residents -- it also ranks 5th in overall stress level, too.

So does money really make you happy?

Fulfillment, pride in achievements and work is what makes Forbes list members happy. Not their money. Their money is a means to an end rather than the end in itself. And it gives you additional perks too. For example:

·         Additional status and respect - people look up to you.

·         More control - you can avoid or delegate unpleasant tasks. 

·         Increased fun - like shopping, travelling and other leisure pursuits. 

·         Special moments - especially with others. 

·         Unique opportunities. If you're wealthy you can help others and achieve amazing things. Like Bill Gates, Warren Buffet and James Martin.

And here are some of the things that can actively detract from one’s happiness in relation to money:

·         Aspirations that don't match your means.

·         Perceptions about wealth which are untrue in relation to your real situation. For example thoughts like ‘I don't have enough money' when you do.

·          Materialism - expecting extrinsic things like status, possessions or money to boost short term happiness rather than intrinsic things like purpose which builds happiness long term.

In short having money and using it to buy experiences boosts happiness while wanting stuff detracts from it.

Who disagrees that house prices will continue to fall?

Buyer's agents disagree, because they get nothing if there is no sale. Agents get paid only if their clients buy, no matter how bad the deal is, which is the exact opposite of the buyer's best interest. Agents take $100 billion each year in commissions from buyers. Agents claim the seller pays the commission, but always fail to mention that the seller gets that money from the buyer. Think about it: who brings the money to the table - the seller or the buyer? All money comes from buyers. No buyer, no money. Real estate in America is all about deception. There is no free market because bids on houses are never published and bids are often faked to get you to think you have to pay more.

Mortgage brokers disagree, because they take a percentage of the loan. They want buyers to take out the biggest loan possible to maximize their commission. Even worse - mortgage brokers get paid according to how bad the deal is for the buyer. The worse the deal is (higher interest rate, points, fees, etc) the more the mortgage broker gets!

Government agencies like Fannie, Freddie, and the FHA disagree, because their own existence (read "executive salaries") depends on guaranteeing private loans with public money. These agencies are perhaps the largest scam ever devised. Most people will borrow as much as they possibly can to buy a house. The existence of Fannie and Freddie just make it possible to borrow yet more money by pushing lending risk onto taxpayers, benefitting bankers with larger interest payments, and harming buyers with higher housing costs. Ironically, Fannie and Freddie drive up the cost of housing in the name of "affordability". The public is unlikely to ever understand this. The perfect crime.

Banks disagree, at least when they can get origination fees and then sell the mortgage, because in that case they do not care about the bankruptcy of borrowers. Banks sold most loans to the government agencies Fannie Mae or Freddie Mac, and now use the FHA the same way. The conversion of low-quality housing debt into "high" quality government debt was the main support for the housing bubble. Fannie and Freddie already imploded, and the FHA is now on the edge. The other way for banks to dump the risk of loan default has been the Wall Street market for private mortgage-backed securities. When mass foreclosures eliminated the loan-resale market, the Federal Reserve bought private mortgage-backed bonds in huge quantities, using newly printed cash. The Federal Reserve is nothing short of a criminal conspiracy to protect the banker class at the expense of the rest of us.

Appraisers disagree, because they are paid by mortgage brokers and banks, so they are going to give the appraisals that mortgage brokers and banks want to see, not the truth. Appraisers that kill a deal by telling the truth do not get called back to do other appraisals.

Newspapers disagree, because they earn money from advertising placed by realtors, lenders, and mortgage brokers. Papers are pressured by that money to publish the real estate industry's unrealistic forecasts. Worse, realtors have a near-monopoly on sale price information, and newspaper reporters never ask realtors hard questions like "how do we know you're not lying about those prices?" The result is an endless stream of stories reporting that the National Association of Realtors (NAR) says it's a good time to buy. Asking the NAR about housing is like walking into a used car dealership and asking the salesman if today would be a good day to buy a car.

The Federal Government disagrees, because everyone in Congress gets campaign bribes (oops -- I meant campaign donations) from the NAR and from the banks. So every Federal law will be aimed squarely at increasing commissions for the NAR and increasing interest payments to banks. Buyers lose, because they have no lobbyists in DC. The very laws of our country have been corrupted to squeeze more profits out of you.

Current owners disagree, because they do not want to believe they are going to lose huge amount s of money. Anyone who owns is likely to encourage you to buy too, to prop up their own house value via comps, and so that they can feel that they are not alone in their sinking boat.

Source: Patrick.net

Glass Ceiling Still Exist?

More females than ever are entering the work force but a huge majority of top management positions around the world are held by men. Females in high positions tend to be in lower management positions and hold less authority than men. This suggests that something beyond just sex differences in career patterns must be at work to account for the huge difference in the number of men versus women in top management positions. Even though women as a whole may place less emphasis on career success than men, there are a considerable amount of women who struggle for top management positions and are unable to achieve them.

There are many causes of the glass ceiling. I believe it is mostly caused by us women. We doubt our ability to succeed and that prevents us from making an effort. An example is we may choose to work fewer hours than men in order to spend more time with our families. Women also measure success in the workplace differently than men. Men are likely to measure success by high salaries and status while women place a higher value on their relationships with colleagues and community service. And stereotyping is also a cause of the glass ceiling.

As women we need to find a way around this, one of the best ways to address this issue is to find guidance, a mentor, be it male or female. Women should find someone who will show them the rope and help navigate the right direction to further their career. When they make it, they need to reach back and help the woman behind them. When possible, promote and hire other well qualified women. Yes, the corporate world is still a challenge with a variety of misunderstandings, assumptions and historical biases towards women in the workplace. But just because there are still difficulties, doesn’t mean we should stop trying. It is important for us to be persistent and go for what we want because we just might crack the glass ceiling.

Financial Issues Women Face

Financial planning can be a challenging task for everyone, but women face more issues compared to men. Though both sexes work in this generation, gender-unique financial issues are apparent. A high percentage of men make more money than women do over a lifetime which makes financial planning more complex. However, women must confront the financial challenges and find ways to overcome them.

Income Discrimination

The biggest challenge facing women is income differences. Research has shown that women are paid a lower rate and earn less than men do. This lowers social security benefits and overall contributions to retirement plans for women. One of the main reasons women earn less is because they work less than men do in entirely. Women who are divorced or widows and remarry may find themselves in special circumstances regarding the loss of benefits. This is especially crucial for women who were staying at home moms in their first marriage. Women are considered the caregivers of most homes. The responsibility of raising kids and taking care of elderly parents typically fall on women. This results in the inability to work as many hours as men. Those who are single parents have an even larger responsibility because they are not able to share tasks with a significant other.

How to change this:

One way to battle this issue is for us women to start planning our careers earlier in life. It will come as an advantage for us to research some of the male dominated careers that has great pay and benefits and decide where it’s the path we want to take. Women married with families can work this out with their spouses and share responsibilities more equally.

After a divorce

Divorce is also an issue that results in financial ruins and problems for women. The divorce rate now is ridiculous, it is about 50% and the average age of the widowed is 55. Changes in the law and an increased number of women in the workforce have caused a downward pressure on the amount and length of alimony men are required to pay. Women who leave rewarding jobs to become work at homes moms are the most affected by the laws regarding spousal support. They are often forced to look for lower paying work when support runs out.

Appearances

Our public image and appearances are very important to us women. We spend thousands yearly on products for our skin, our clothes, nail care and other items seen by the public. Whether it is for professional or personal reasons, it typically cost more for women to maintain presentable appearances.

How to manage this:

Financial literacy is one of the best ways to solve some of the financial problems women face.  We should always plan ahead of time, that way we plan for them more effectively.Even though women face financial challenges than men do, they also have access to the same investing and investment advice as men. Women will have to focus on learning more about finances, not just to be good savers, but to be aggressive investors too. Traditionally, women have risen to every challenge presented to them. No doubt, as society continues to value independence, women will find equal footing for many of these financial problems.

Women, Money and Relationships

Money is a big deal in relationships. But most women refuse to admit its importance and the role it plays.  Hilary Black, a veteran magazine editor was determined to find out. The result is her compelling new anthology, The Secret Currency of Love: The Unabashed Truth About Women, Money, and Relationships (William Morrow). In it, a number of prominent female writers (including Julia Glass, Laurie Abraham and Joni Evans) spill the beans about money in their own lives. She explained to Time Magazine that she thinks it is because money is so wrapped up in self-worth for a lot of people, and self-esteem. The tradition of not talking about money and not talking about your salary is something that has been long-standing over the past 40 years. She explained that it’s private because people feel that they don’t want to reveal that personal part of themselves. For a lot of people it’s wrapped up in how successful they are as a person. It is a very powerful force in intimate relationships, because whether you have a lot of money or a little money, it’s always there. You don’t ever escape its power.

This is her interview in New York City to TIME senior reporter Andrea Sachs:

Why this particular book?

One thing I noticed over the many years I worked at More was that although people often wrote about divorce and Botox and sex, they didn’t really talk about money in a way that was as profound or exploratory. And then I was kind of pushed over the edge when a relationship of mine ended. I was involved with a very wealthy man, and I was in my early 30s. I was surprised, when we broke up, at the reaction of my friends. I broke up with him. My friends, who were all independent, employed, sophisticated women, were not particularly supportive. Not across the board, but they were all kind of like, “He treats you so well, and he’s so rich. What are you doing?” It was just amazing to see these very sophisticated, independent women kind of reduced to something out of a Jane Austen novel. 

Why do you think this subject is so taboo?

I think it is because money is so wrapped up in self-worth for a lot of people, and self-esteem. The tradition of not talking about money and not talking about your salary is something that has been long-standing over the past 40 years. I think that it’s private because people feel that they don’t want to reveal that personal part of themselves. For a lot of people it’s wrapped up in how successful they are as a person. It is a very powerful force in intimate relationships, because whether you have a lot of money or a little money, it’s always there. You don’t ever escape its power.

I was very surprised in reading your book how many women — some of them self-identified feminists, some of them professionals — have the fantasy that some man is going to rescue them financially.

It seems like there’s a pattern of ambivalence because so many women were raised with this idea that they could either be an astronaut or a ballet dancer or a mom; whereas I think that men were never sent a conflicting message. So I think that women [who] grew up as the children of baby boomers — certainly, from that generation on — felt they had a lot of options, and one of the options was not to work. I think that’s why so many women who wanted to make their own way in the world and did so very successfully are kind of caught up in this conflict and this ambivalence about who earns the money.

There are women in your book who married for love and thereby entered poverty and later said that they hadn’t really dealt realistically with their futures.

For many, many centuries, marriage was a financial transaction. And then, in the modern era, where marriage became about falling in love and free love and finding your soul mate, people were looking for that without asking some of the most important questions, which is what drives a long-term partnership. I think having similar financial values is crucial. It doesn’t matter if you are a profligate spender or an industrious saver. You both have to be the same about it.

Do you think it’s difficult for people to be financially compatible in that way?

No. I just think it takes a certain amount of planning. Money is crucial in the way that everyone lives their lives. It can be as simple as going out to dinner. Some people think that is a luxury, and other people think that it’s a necessity. I think that things like that should come up and do come up early on. I think that something that simple can signal a whole lot about the way people value their money and what they do with it.

Did you find writers who married for money?

Not anybody who was willing to go on the table with that. I think that is actually the ultimate taboo. I think that it happens all the time, but it’s something that nobody would ever admit to publicly.

What advice would you give people, based on what you learned?

What I hope people will take away from this is the idea that money issues are inescapable and that by reading these stories, people will see themselves — aspects of themselves, ambivalence about money, anger about money, how it changes things between people. And I feel that reading these stories will help people navigate their own issues, which I think will be exacerbated by what’s going on in the economy right now.

How do you suppose the recession will affect women’s thinking about money?

I think it’s going to have an enormous impact. I think that what’s going on now is so serious, and I think it hasn’t even remotely begun to play out yet. I think that without a second Depression, these issues are powerful and can really transform people’s relationships. But I think now, when people’s lifestyles and very careers are being threatened, all of these things are going to be in the forefront and wield an even stronger influence. So I’m hoping that this book will help women figure out their own circumstances and make them feel that they’re not alone and see the different ways that money can impact people’s relationships — and hopefully take some of the lessons away that each of these writers have told. (See Sanjay Gupta’s article on The Heart of a Woman)