Easy Ways for Women to Start Investing

On average, female investors invest about 40% less money than their male counterparts. Failing to invest enough can hinder financial freedom, delay retirement, and make it harder to reach your goals.

However, there is some good news — when female investors do start investing, they’re more likely to see better returns thanks to their patience and level-headed approach! So, ladies, what are you waiting for? 

How To Make Investing Easier

Investing can seem intimidating, with the endless options and confusing jargon. But there’s an easier way. Automated investing services use your personal and financial data to decide for you where you should invest to get the most out of your money. 

With fully managed investing, experts take care of everything — from personalizing your portfolio to picking individual investments to managing your account. MoneyLion offers a fully managed investment account for almost no cost. There is literally just a $4/per year admin fee on the funded accounts. There are no management fees and no minimums. 

With help from MoneyLion, you can ease the apprehension, get started immediately, and watch your money grow. With the complicated parts of investing taken care of for you, you can simply open your MoneyLion app on the way to work or after the kids go to bed to invest a few dollars or check on your portfolio.

How To Get Started

Simply log in to your MoneyLion app and sign up for an investment account. It takes a couple of minutes for us to set up your portfolio and once you’re done, you’re an investor!

Nearly half of MoneyLion members are women, and almost all of them are first-time investors. Our female members enjoy avoiding expensive financial advisor fees, complicated investing platforms, and high-pressure sales tactics by taking advantage of a MoneyLion Investment account. 

A MoneyLion investment account gives you full access to a managed and automated investing system. Simply answer four questions in the app, including choosing your risk tolerance, and you’ll receive a personalized investment portfolio custom-fitted to your needs. You can also adjust your level of risk, withdraw or deposit, and set up auto deposits (coming soon) as often as you’d like. 

How Much Should You Invest?

How much should you invest? The answer depends on your individual financial situation. Investing as much as you can is almost always beneficial, especially if you’re younger and have time on your side. Take a look at your personal finances and decide how much you’re comfortable investing each month, whether it’s $2, $20 or $200. 

When you consistently add to your investment account without withdrawing, you’ll start to see the benefits of compound interest. Compound interest is the money you will make on not only your initial investment but also the gains on your investment. Check out this compound interest calculator to get a better understanding on how this magical money-maker works!

Remember, us women tend to live longer than men, so we’ll need a large nest egg to depend on later in life. Get started today, girls!

What Should You Invest In?

There are three main asset classes you can add to your investment portfolio, and MoneyLion has you covered with well-diversified stock and bond ETFs representing companies of all sizes and regions around the globe. 

Most people choose to invest in a diversified mix of stocks and bonds. They can construct a portfolio out of individual investments or opt for ETFs that bundle a variety of individual investments together. With MoneyLion, we take care of the decisions for you, and you can view and modify your mix (aka your portfolio) in the app at any time. 

Here’s a look at the three main investment types:

Stocks

A share of stock is a single piece of ownership in a corporation. When you buy a share of stock, you buy a tiny piece of a company. MoneyLion investors can invest in fractional shares, so that they can invest in companies they love no matter the stock price!

Many corporations also pay stockholders a small amount of money annually or quarterly called a “dividend.” You receive dividends based on the number of stocks you own. For example, if a company pays out a $0.10 dividend per share and you own 100 shares of stock, you’ll get $10 from the company each time it pays out dividends. Corporations aren’t required to pay out dividends, and stock values can change quickly. 

Bonds

A bond is a legal contract between a buyer and an entity that borrows money. The U.S. government is one of the largest bond issuers, but corporations can also issue bonds as well. Bonds are typically safer than stocks because the issuer must pay you back for the money it borrows. Note: Bonds typically have a much lower average rate of return than stocks.

Exchange-traded funds (ETFs)

An ETF is a pooled investment vehicle that “bundles” a number of stocks or bonds together. You buy a small percentage of every stock or bond in the fund when you buy an ETF. ETFs are an easy way to diversify — which means you spread your assets around to reduce volatility as you seek gains. 

How many stocks, bonds, and/or ETFs should you buy — and which types? That depends on how comfortable you are with risk and how long you plan to invest before withdrawing. If you want to take on some risk in pursuit of higher gains and can invest for a couple of years, you’ll likely opt for mainly stocks. On the other hand, you’ll likely choose bonds if you’re not as comfortable with risk and need to be more cautious about preserving your money in the short term. 

How Long Should You Keep Your Investment Account?

The amount of time you’ll need to keep your investment account open depends on the type of account you have and the goals you’re trying to reach. For example, if you have a Roth or a traditional individual retirement account (IRA), you cannot withdraw your funds before you reach retirement age without penalty. 

Most other types of brokerage accounts, such as a MoneyLion Investment account, you can keep growing for as long as you want and withdraw anytime! Just remember, investing typically rewards patient, long-term investors the most, and you shouldn’t withdraw unless it’s absolutely unavailable.

Can You Borrow Against Your Investments?

It is sometimes possible to borrow against your investments. Your bank might allow you to take out a line of credit against the money in your investment portfolio. When you agree to borrow against your assets, your bank gets a lien on your assets that they can use to claim your investments if you don’t pay back what you owe, so read the fine print!

You can also borrow against your 401(k) retirement fund in many cases, but again, you will pay a 10% early withdrawal penalty on the amount of distribution. It’s better to let your investments grow and look to solutions like a 5.99% APR Credit Builder Plus loan if you need cash. And MoneyLion does offer loyal members some solutions for borrowing against their investments. And you don’t need to be a high roller to get access. 

Close the Investing Gap

Are you ready to get started on the path to a healthier financial future? You deserve it! Get started or learn more about beginner investing strategies by visiting our financial learning center.

Disclosures

MoneyLion Checking Account provided by, and MoneyLion Visa® Debit Card issued by, Lincoln Savings Bank, Member FDIC. Terms and conditions apply.

Investment advisory services provided by ML Wealth, LLC. Investment Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Investment Account, see Investment Account FAQs and FORM ADV. Broker-Dealer may charge a $0.25 withdrawal fee, among other fees. Funded accounts are subject to administrative fee of $1 per quarter.

Current Credit Builder Plus membership required for Credit Builder Plus loan eligibility; the $19.99 monthly fee will be withdrawn from your linked bank account.  All loans with an Annual Percentage Rate of 5.99% are made by either exempt or state-licensed subsidiaries of MoneyLion Inc. The Credit Builder Plus loan may, at lender’s discretion, require a portion of the loan proceeds to be deposited into a reserve account managed by ML Wealth, LLC and held by Drivewealth LLC, member SIPC and FINRA. The funds in this account will be placed into a money market cash management or FDIC bank sweep vehicle, and may generate interest at prevailing market rates.  You will not be able to access the portion of your loan proceeds held in the credit reserve account until you have paid off your loan, and so long as your Credit Builder Plus membership payments are current. If you default on your loan, your credit reserve account may be liquidated by the lender to partially or fully satisfy your outstanding indebtedness. May not be available in all states.Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.

A Credit Builder Plus loan may or may not improve your credit score. Credit scores are the result of your personal credit practices.

Cash advance requires current membership in Credit Builder Plus ($19.99 monthly fee) or Instacash with Banking ($9.99 monthly fee) membership programs. Instacash with Banking monthly fee is waived for members who connect and maintain recurring eligible direct deposits into their MoneyLion Checking Accounts. All Credit Builder Plus and Instacash with Banking members are automatically eligible to access either $25 or $50 of cash advance, depending on creditworthiness.  Members can increase their cash advance limit to up to $250 by connecting and maintaining recurring eligible direct deposits into their MoneyLion Checking Accounts and after up to three consecutive direct deposits have cleared, or at MoneyLion’s discretion. See Membership Agreement and Cash Advance FAQs for more information.

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