Month: December 2024

They are quite the power couple.

We are absolutely floored.

Sure, we all know we’re supposed to keep investing even if we’re using our retirement funds, but how can we invest in accordance with our values, support our communities while still increasing the likelihood of getting a return on our money?

Let’s Talk About It!

In 2023, Fidelity found that women are opening brokerage and retirement accounts much earlier than before, which makes sense. We’re living longer than ever, but there are other factors at play here, too.

We typically work fewer years and live longer than men, meaning more non-earning years. But we’re also increasingly single, which means we don’t have a partner’s income, pension, or retirement investments to support us. But investing like your father did may not be accessible now, and some kinds of investing might not even align with your values.

So how do I talk with my financial coaching clients about novel and ethical ways to invest? We’ll talk about a few of my favorites, but first let’s define two terms.

What Is a Stock?

When you own a stock (or even a tiny portion of one as in a mutual fund) you own part of a business, which means you own part of the risk of that business. That risk means you may lose your initial investment, but the potential (not guaranteed) return may be higher than the other alternative, a bond.

What Is a Bond?

When you own a bond, you own a debt. Someone (or some entity like a business or government) will need to pay you back. Bonds are typically safer (although no investment is without risk), but their returns are typically lower.

New Ways Women Can Invest

Outside of your vanilla 401(k)s, IRAs and mutual funds, these are my three favorite ways I’ve seen women investing!

Small-to-Micro Investing

I love small-to-micro investing like SMBX and others. These platforms (if reputable) grow emerging economies, support small businesses, and provide a modest (but not guaranteed) return.

Check out this winery in Santa Barbara, for example.

SMBX is a bond marketplace, which means your investment is likely pretty safe, but I recommend still doing a little due diligence if you choose to invest in a business through one of these sites.

Community Investing

Do you love your local indie coffee shop, yoga studio or book store? Is that favorite local spot needing to expand or otherwise grow? There are multiple ways you can invest in your community.

You can invest as a part owner with some level of control over the business as well as assuming some level of risk. Also, you can also invest by loaning money to this community business. You wouldn’t have any control over the business, but typically returns are less risky if you own a debt.

Either way, you and the business owner should both have attorneys to make sure you’re protected.

Your Own Business

This is risky, yes. But if you have a purpose or calling in life, building a business is probably the biggest investment you can make. This may require some level of time AND monetary investment, as well as investments in your own knowledge and experience.

How Can Women Investors Discern If These Investments Are Within Their Risk Profile?

I recommend taking some time to run through a formula called Expected Value (EV). EV does a good job of approximating what you might expect as a return, and can be “tuned” to your risk tolerance (or how likely you think a project is to succeed).

This formula gets better as you input better-informed data.

This is a garbage-in garbage-out kind of thing, but can be useful. I would not recommend using only EV to make investment choices, though, just an element of your decision-making process.

If you’d like to do a deep dive into Expected Value, start here.

But here is a very, very, VERY simplistic example of Expected Value just to get you started.

Expected Value is the value of a variable multiplied by the probability of that variable occurring.

Let’s say I’m considering opening a virtual assistant company. I do a little back-o-the-napkin number crunching and come up with rough numbers that show this company potentially could be worth 1 million dollars. That’s the variable. And let’s say I estimate the probability that this will be a company valued at 1 million dollars is 10%.

$1,000,000 X .10= $100,000

If my investment of time and money is less than $100,000 this may be a good investment/bet.

If I do a little market research, and find that the probability is higher or lower, or the potential value of the company is higher or lower, that new information changes the calculus.

Again, the more information you have, the better the Expected Value formula works.

Ready to Get Started?

Start small. Like microscopically small. Try out micro-investing to test your risk tolerance. The other thing I’d recommend is to only start investing outside a 401k or Roth if you have an adaptive, personalized budgeting/spending system in place.

Without that underlying foundation, it may be difficult to “see into the future,” and to know if your money might be best used somewhere else besides investments (targeted savings, paying off debt, or even increasing lifestyle or experiences). It’s important to balance the future-focused seduction of investments with your life right now.

Let’s Start a Conversation:

Have you started investing? What is your risk tolerance? Based on that, what kind of investing have you done?

As my 78th birthday approaches, I find myself celebrating not just another year but a vibrant way of living I call “ReFirement.”

Yes, you read that right. Instead of slowing down post-career, I’ve chosen to ignite new passions, embrace life’s joys, and savor its challenges. With a promise that my “F” words are the good kind, I’ve built a framework that keeps my days exciting and my spirit young. Inspired by my great-grandmother’s zest for life into her tenth decade, I’ve defined my ReFirement with five guiding words: Family, Fitness, Fulfillment, Friends, and Fun. These sparks fuel my flame, ensuring I thrive well into my 90s and beyond.

Let’s explore how these five words shape my life – and perhaps, yours, too.

Family – Rooted in Connection

Family is the foundation of my ReFirement. Staying connected with my blended family of children and grandchildren enriches my life and strengthens my roots. Whether through weekly Zoom sessions with my long-distance grandson for story time, quick phone calls and text messages to catch up with our adult children, and cherished summer reunions when we’re all together in person, I’ve discovered that nurturing family ties is a two-way gift.

Last year, I helped my grandson publish his first eBook based on adventures we shared during my week-long visit. It’s a memory I hope he treasures forever, just as I cherish the legacy stories passed down from my grandmothers, who taught me the value of creating moments that matter.

Family bonds connect us, remind us where we come from, and ground us in love.

Fitness – Body, Mind, Spirit, and Money

Fitness is about much more than staying physically active. It’s about caring for the body, nurturing the mind, uplifting the spirit, and managing finances to live stress-free. For me, fitness means weights, walks, and veggies – though chocolate tempts me daily.

Physical activity is a game-changer as we age. Research published in The Lancet confirms that it reduces the risk of chronic diseases and bolsters cognitive health.

I balance this with mental workouts, like lifelong learning classes and creative endeavors. One highlight? I took a poetry class that led to my poem being published in The Apple Tree.

Daily meditation, inspirational readings, a connection with nature, and a bond with my congregation enhance my spiritual fitness.

Financial fitness is equally crucial. My years as a CERTIFIED FINANCIAL PLANNER® taught me that managing money wisely reduces stress and increases freedom. Whether budgeting for travel or giving back to causes I love, financial health allows me to thrive without worry.

Friends – My Chosen Relationships

Friendships are a lifeline, especially as we age. Research from the National Institute on Aging shows meaningful connections can stave off loneliness and boost mental health. My circle of friends brings joy, laughter, and support – essentials for thriving.

One of the gifts of later life is the ability to focus on relationships that truly matter. I’ve rekindled old friendships and built new ones through book clubs, discussion groups, and other local events. Whether we’re sharing tea, heartfelt stories, or silly jokes, these connections light up my days.

Looking ahead, I plan to move into a Continuing Care Retirement Community in a few years. It’s an intentional choice to ensure vibrant friendships surround me as I continue my life journey.

Fulfillment – Purpose and Passion

Purpose is the glue that holds my ReFirement together. Studies in the JAMA Network reveal that having a clear sense of purpose improves physical health and even extends life expectancy. For me, fulfillment means waking up excited for the adventures and joy ahead.

Much of my purpose comes from giving back. I mentor younger professionals, help nonprofits grow their endowments, and empower widows through financial literacy. Recently, I joined a program tutoring third graders to improve their reading skills – an experience that’s as rewarding for me as it is for them. Sharing my skills and passions creates a ripple effect of positivity.

Fun – Embracing Joy in Everyday Moments

Fun is the fuel that keeps my spirit alive. Whether attending a local arts festival, savoring a yummy, sticky s’more made at our backyard firepit, or marveling at a live theater performance, I embrace every opportunity to smile.

Simple joys make me happy, like reading on my backyard swing, planting pretty SunPatiens, or baking a batch of gingersnap and chocolate cookies. My husband, Charlie, and I like to take goofy photos with laughter flowing freely. These moments remind me that fun doesn’t have to be grand to be meaningful.

ReFirement – A New Vision of Aging

ReFirement isn’t about denying age or chasing youth. It’s about living boldly and embracing each chapter with open arms. As I look toward my 90s and beyond, I’m determined to keep my flame burning bright by focusing on family, fitness, friends, fulfillment, and fun.

Let’s Have a Conversation:

What helps you thrive in your post-career late adult years? Do you resonate with any of my five “F” words? What small changes could you make to feel more energized each day as we rewrite the story of aging together?

He’s making more than his co-stars.