If you are a single woman and haven’t started investing, the time to start is now.
Putting a few dollars into a regular savings account each month and hoping for the best is not how you will manage to grow your wealth, buy your dream home, or secure a comfortable retirement for yourself.
To be able to achieve your financial goals, you need to invest. And don’t worry if you don’t have that much money, to begin with: it’s perfectly fine to start with just a few dollars and invest more as your money grows.
From opening a Tax-Free Savings Account to investing in mortgages and stocks, here are seven good investments for a single woman.
1. Tax-Free Savings Account
If you are in Canada, opening a Tax-Free Savings Account is a simple way to invest your money and achieve your financial goals.
In a TFSA, your money can grow tax-free. You are eligible to open an account no matter your income, and you can contribute up to a certain amount each year.
One of the best things about a TFSA is that it allows you to withdraw your money whenever needed, without penalty.
2. Registered Retirement Savings
Investing in a Registered Retirement Savings Plan is an easy way to save money for retirement.
If your employer offers any type of workplace retirement plan, be sure you contribute. You can deposit a portion of your paychecks in your retirement plan, and your employer might match your contributions.
Do your research to understand how it works, and start investing in your future.
3. Certificate of deposit
If keeping your money safe is your priority, buying a certificate of deposit from your financial institution can be a great way to diversify your portfolio. All you have to do is buy a certificate for a fixed amount of time, during which you will earn interest.
Just keep in mind that if you decide to access your money before the end of your CD, you will have to pay a penalty.
But maybe you already bought a certificate of deposit since they are generally considered simple and safe investments. And perhaps you are already familiar with Tax-Free Savings Accounts and workplace retirement savings plans.
4. Risky investments
What if you feel ready to try something a bit more risky? Women tend to take on less risk than men with their investments, but that doesn’t mean they never take risks.
Women are often considered great investors since they take more calculated risks, spend more time researching their investment choices, and are more likely to stay calm and hold on to their investments when the market temporarily goes down.
That being said, let’s look at four more good investments for a single woman.
5. Mutual funds
Mutual funds are an interesting option for women who want to invest but don’t want to spend too much time managing their portfolios.
A mutual fund is a portfolio of assets such as stocks and bonds. When you buy a share from a particular mutual fund, your money is pooled with other investors’ money.
Make sure you research to choose a mutual fund that meets your needs and should perform well in the long run.
6. Exchange-traded funds
Exchange-traded funds are similar to mutual funds, allowing you to buy a share in a basket made from different assets. However, unlike mutual funds, ETFs can be traded just like stocks.
Exchange-traded funds are considered low-risk investments and can be perfect for a woman just starting with investments. They generally cost less than mutual funds and are a great way to diversify your portfolio.
7. Mortgage loans
If you want to invest a lot of money in something meaningful, investing in mortgages could be a good option. By acting as a mortgage lender, you would be helping people buy a home.
And, of course, you would get a return on your investment in the form of interest.
You would first need to find the right mortgage plan to invest in and then find borrowers looking for the type of mortgage loan you are ready to offer.
Finally, investing in individual stocks can be a great option if you don’t mind going for a more risky investment.
When you buy stocks, you buy a small share of a company of your choice. This is why you should research before getting started to ensure you understand the company you choose to invest in and its industry.
Remember that investing in stocks should be a long-term venture and that you should keep an eye on the big picture.