Do you know that you face a big risk, or even two risks? Because you, as a woman, in the U.S. today are likely to live longer than a man, you face LONGEVITY RISK. That is the risk that you will run out of money before you run out of breath.
Since you are going to live 30, 40, or maybe 50 years after your Hot Flashes start, you also face another risk — INFLATION RISK. You know that prices always go up, rather than down. So the amount you will pay for food, electricity, cable, mobile phones and other things will go up. So you will need more money in the future to pay for and enjoy the things and comforts you have today.
So let’s you and I work to combat these risks. Let’s work to try to manage them by encouraging you to manage your money more effectively. And let’s encourage you to put your money into accounts with your name on them,what we call here a Hot Flash Stash of Cash so that you can build the funds that you need to enjoy your future.
In short, let’s work to make you more financially secure. Use this site and the steps we provide to:
- Increase your knowledge about your money and your finances
- Learn to think about your money in a different way
- Learn to CHANGE the ways you use money
(after all, Hot Flashes are also called “The Change”) - Begin to practice new skills, then get better and better at doing
the things you must do to be more financially secure - Laugh — to release the tensions you might feel about money
- Appreciate the joy that comes from increasing your control over money,
while laughing your way to the bank and a secure future - Enjoy the the independence that money brings
If you want to know more about us women, and our secret fear of risk, especially financial risk, read on.
I did some research at the Massachusetts Money Conference for Women in Roxbury Massachusetts and a smaller group of elite women in Lexington, Massachusetts in 2004. I conducted a survey to find out why women ignore their need for building large accounts in their own names, through investment.
I also offered a workshop on investing at the Roxbury Massachusetts Money Conference. I told each woman I would “give” her $100,000, but she had to invest it. The women were happy with the “gift” but a bit apprehensive about investing. So I told them that their money would be in the stock market. Then I said that the first month their money went up by 5%. Everyone was happy. Then I said the next month, the market went down $10,000 to $95,000. What did they think? Women looked tense, sucked in air and held their breath. They started to tell me about investing as gambling etc. So I said, wait. You still have $95,000 to invest. It is not so bad. You still have a base. Nope, they focused on the loss.
We women are called “risk averse” when it comes to investing our money for the future. (I understand that some men are more risk averse with relationships &8212; they see risk in entangling themselves in “love” relationships. While many of us go running toward them. Men would rather risk their money than their …). We don’t like to put our money to work for us.
We say things like:
- I am afraid to invest my money. If I do, I will lose it.
- I give that job to my husband to
- Investing is like gambling
- I wasn’t taught how to do that by my parents
(these are women who are in their 40s or 50s) - I guess down deep I want to be taken care of
(these are women who are in their 40s and 50s)
We say we don’t like risk. But we don’t realize that we are trading one type of risk for another. That is, our fear of risking our money by investing it in the market (called market risk) put us at GREATER RISK — that we will run out of money before we run out of breath (called LONGEVITY RISK). And if we do not take steps to make our money grow before we need it, we will also be at RISK that INFLATION will cut into our ability to pay for things as we age.
So let’s work together on this. Let’s get you involved in making good decisions so you reduce your exposure to RISK.
