Category Archives: women and investing

Women and Money: Financial Feminism

Mind the Gap, Seven Chapters on Financial Feminism, showed up in my inbox today and I had to share!

I have written before about Sallie Krawcheck, Ellevate, and gender lens investing.  This little book is from Ellevest which is a digital advisor.  All these pieces fit together!

Confused?  It’s easier than you think please just click here and enjoy!

 

Social Entrepreneur & Benefit Corporations

Social-Entrepreneurship

I am learning new words to describe new ways of doing things in our world.

First, I became acquainted with the term “social entrepreneur” when I connected with Molly Barker, founder of Girls on the Run and now the lead advocate Red Book Coalition. I think the concept of social entrepreneurship describes the work of my Financial Freedom Party for Women.

While reading about Kickstarter, I learned about Benefit Corporations. Kickstarter describes it as follows:

Benefit Corporations are for-profit companies that are obligated to consider the impact of their decisions on society, not only shareholders. Radically, positive impact on society becomes part of a Benefit Corporation’s legally defined goals.

As I work on getting my Financial Freedom Party for Women business entity established in Texas, I’m thinking these are the concepts we will be embracing. Things look better for what FFP offers for women and the business community than they did in 1998 when we started this whole FFP thing. We are focused more like Benefit Corporation than a non-profit. Why does teaching financial literacy for women, giving them information to take to the marketplace, and connecting them with the financial services industry  have to be considered a non-business activity? Apparently it doesn’t!

salliecrawcheckSo excited to read the article about Sallie Krawcheck’s new offering for women investors.

Not sure who she is?  Wonder why she is involved in investing and women?  Curious to know about a new investment process which steps away from the traditional investment models?  Please just click here and enjoy!

 

 

 

 

 

 

 

 

The Doubly High Cost of Being Female

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Some of my friends and business associates have been out and about talking to women about business development and financial management.  There are two quotes we bring up to gently gain the attention of the women we meet.

The statistic that really grabs the audience is that the average age of widowhood is 56.  Interestingly, most men and women guess numbers in the 70s or 80s.  Big surprise.   Of course many women are choosing to stay single, but this statistic makes everyone take inventory of their relationships.

Then we talk about how women earn 79 cents for every dollar a man earns.  That’s in improvement over the 72 cents I used to talk about when I first started working with women and finances.  Still, something to think about.

Today as I breezed through my daily news reading on my cellphone, I found this really powerful article titled The Doubly High Cost of Being Female.  Here I found more things that I really hadn’t understood, or even thought about.  Can we fix all of it, probably not.  Can we learn and do better?  Absolutely.

To read the article, please just click here.

 

 

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Click here to order

Financial Freedom Party for Women, Workbook Edition for 2016 Now Available

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I often say that I agree with a well-known author who says she likes                          I wrote better than  I write.

Once something is written, published and out into the world it is a relief and an accomplishment.  For me, going back and updating is something that is really important and a luxury these days because of on-line publishing, but it takes focus and commitment.  This is true for all of us in so many important things we do in our lives.  Focus and finish.

So, I am very excited to tell you that a spiral bound version of Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition 2016  is now available.  This version has some updates,  is easier to use as a workbook,  has a new cover to make it more fun, and a tagline of Party with a Purpose!

Just click here to access the private link to purchase the book, or click on the area above on the side of the webpage at the small x.  It will pull up the Lulu tab.

Please consider having a Financial Freedom Party and also ordering a book for your personal use.  This book  makes a great high school and college graduation gift and is a good resource for those getting married or in relationships which involve joint money decisions.  After working with girls and young women and teaching life skills over the last six year, I have learned that it is never too early to teach financial fundamentals.  The audience is pretty limitless!

We women, our families and friends work hard to earn money and spend it.  As Mary Hunt says, The degree of a woman’s financial  confidence greatly determines her success.  Let’s be part of leading women to financial confidence and financial freedom, even in these challenging financial times!

Debra

 

M&M-Moms and Money

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Mother’s Day celebrations and  Mother’s Day cards  mention appreciation for lots of things, but I have never seen much mention about moms, children, and money.

On this day of reflection about mothers, those still with us and those who have gone on, it is nice to add another dimension to how we see the role of a mother (or mother figure) in our lives.  Moms and Money, the new M&M.

I hope you will enjoy this article about how moms have the greatest impact on finances.   Please click here to learn more!  One more thing to appreciate about those women we call moms.

Women and Money- Limiting Beliefs

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I used to think anything related to finances is all about the numbers.   After meeting with hundreds of people concerning their personal finances and investing, it became clear that it’s more about feelings and emotions than it is about the math.

There is a really wonderful article on the blog Frugal Confessions by Amanda Grossman titled Do You Have This Limiting Belief about Money?  If you are feeling a little (or a lot) inadequate when it comes to managing your finances, just click here to read what Amanda has to offer, get some confirmation that you are not alone, and learn that there are some simple ways to start doing better.

 

 

 

 

 

 

 

Women and Money, The Prospectus

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Have you been in this situation?  You pick up the prospectus for an investment and wonder, what is this?  It looks so boring, why should I even bother reading it?   How can it help me?

This post is to help you find some value in those printed pages and keep from being be overwhelmed by the information provided there.  Yes, it is more fun to look at magazines and catalogs which are colorful and clearly designed to attract our attention to buy, buy, buy.  Just think of the prospectus as part of the process for purchasing a specific investment and try to overlook the lack of pizzazz in the presentation.  Once again, this is an educational blog and not a recommendation to make a buying decision of any particular investment or product.  You may use a prospectus from any fund you wish as a tool to learn more about the investment.

Since my earlier posts were about a mutual fund which offers an investment option called gender lens investing, I’m going to refer to mutual funds as the type of investment—or security—for this discussion. There are, of course, other investments, such as individual securities like stocks or bonds, but mutual funds have evolved into a popular investment choice.   The prospectus for the Pax Ellevate Global Women’s Index Fund  is as good as any to use as an example and was mentioned in my  series about gender lens investing.

First, it is important to remember that the securities industry is highly regulated. The government organization with the main responsibility for setting rules and regulations is the Securities Exchange Commission (SEC). The organization which is responsible for setting a framework for firms (such as broker/dealers) and registered representatives (licensed individuals who work in the industry and serve clients), is called the Financial Industry Regulatory Agency (FINRA). Previously it was called the National Association of Securities Dealers (NASD). FINRA is not a government agency, but is referred to as a Self- Regulating Organization.  The SEC makes the rules and FINRA members (firms and individuals) implement them through more rules and regulations.  This is a simple explanation.  To learn more, please click here for the SEC website   and  click here for the FINRA website.

When you, as the client, make an investment in a mutual fund, you are given a prospectus. This is a regulatory requirement. The prospectus is supposed to be presented at the time of the investment, but there are some other guidelines which allow a slight delay. For your purposes, you should expect to receive the prospectus when you meet with your representative. It is pretty easy these days as the prospectus is usually readily available on-line.

So what is a prospectus? It is the story of the investment, in this case a mutual fund.  Some companies issue a separate prospectus for each fund.  Others, offer a booklet listing information about more than one fund.  The Pax Ellevate Global Women’s Index Fund  is one of seven funds listed in the prospectus we will be reviewing.  So when you look at the prospectus, please go to the index and you will see that  information about the Pax Ellevate Global Women’s Index Fund starts on page 49.

The prospectus contains a lot of information, but a good way to start is to locate the following information:

  1. The name of the company that manages the fund.
  2. The goal of the fund.
  3. The minimum investment for a lump sum and/or a periodic automatic investment.
  4. When the fund originated.  Information showing the long-term performance of the fund.
  5. Fees. What is the initial front load (cost to the investor) or a back-end load (cost to the investor)? What is are the annual operating expenses paid each year as a percentage of the value of the investment? Are there other fees and restrictions?

The best way to learn is to explore a prospectus and identify the items described above. Please link to the prospectus at   Pax Ellevate Global Women’s Index Fund and review pages 49-58 and page 89.  You probably commit a lot of time to making money and spending money.  So, please make a small commitment of time to understanding how to gain some value from a prospectus when considering an investment.

Next time–a review of the details provided by the  prospectus for the Pax Ellevate Global Women’s Index Fund.

 

 

(This information is designed to educate you about basic financial management concepts. Questions relevant to personal finances specific to the individual should be address to an appropriate professional to ensure that the situation has been evaluated carefully and appropriately. The Authors and Publisher specifically disclaim any liability loss, or risk which is incurred as a consequence directly or indirectly from the use and application of any contents of this work.)

Copyright2014©by Debra Hadsall

 

 

 

 

 

Women and Money, Gender Lens Investing

The series of five posts on Women and Money, Gender Lens Investing, has been combined into one article.  For those who didn’t read the series, it is probably easier to read a consolidated version.  So, please go to scribd.com (a publishing website) by clicking on the link below.  Scribd.com not only provides a way to read on-line, but allows you to download the article and even print it.  I am mentioning scribd.com  because it is a great resource for those who like to read and learn.

Just click on:  https://www.scribd.com/doc/245944714/Women-and-Money-Gender-Lens-Investing .  This will take you to my article.

To me, this is an exciting time for women to be learning about how to understand gender lens investing, and see if it fits into their investment needs.

Please pass on what you learn and share this exciting concept with other women!

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(This information is designed to educate you about basic financial management concepts. Questions relevant to personal finances specific to the individual should be address to an appropriate professional to ensure that the situation has been evaluated carefully and appropriately. The Authors and Publisher specifically disclaim any liability loss, or risk which is incurred as a consequence directly or indirectly from the use and application of any contents of this work.)

Copyright2014©by Debra Hadsall

 

Women and Money, Gender Lens Investing V

lensfunnyThis is the fifth Women and Money post in a series about gender lens investing. All are available at www.financialfreedomparty.com.

The first post introduced the concept of investing through a screening process referred to as a lens. The second gives an overview of socially responsible investing as an established type of lens investing. The third answers the question “Why gender lens investing?” and promises to look at the role of board of directors (also referred to as the board) and high level business executives in publicly traded companies. The fourth post, gives a brief overview of each of these two leadership groups and shows why they are important in understanding how gender lens investing works. This fifth post describes some specific criteria being used by one investment company as its way to screen companies, or simply how they apply the gender lens.  Those companies who meet the gender lens criteria are then eligible to be considered as part of the investment.

Once again I remind you, this blog is educational in nature and does not give  investment advice. The intent is to give an overview of gender lens investing and how it works. If you find the investment mentioned here to be something that interests you, then please seek professional advice and go through the normal process of determining whether or not it is appropriate for you.

Much of the material on investing is technical and precise.  Rather than trying to re-state it correctly, most of this post will refer you to the source documents through a series of links for you to click on.  It is the best way to learn, even if it may seem just a little tedious at first.  If you choose not to follow the links, all the pieces of this puzzle- like study won’t fit very well.  Your choice of course.

Pax Ellevate Global Women’s Index Fund is an example of gender lens investing. If there are similar funds out there, I have yet to find them.  Since this one is leading  a new way of thinking, it is a good place to start learning the details.

The link which will guide you in understanding who is involved in the development of the fund referenced above, why it was created, and how it works can be seen by clicking here.

An overview of how companies are screened, or how the gender lens is applied, is briefly described below:

Each company gets the cumulative ranking based on five criteria of gender leadership. These include the number of women representatives on boards of directors or in executive management, as well as those who have a female CEO or CFO and have signed the Woman’s Empowerment Principles, a joint initiative by the UN Global Compact and UN Women that provides guidance for companies on how to empower women in the workplace.

Besides these criteria, companies must also meet key environmental, social and governance standards

Not familiar with The Woman’s Empowerment Principles?  I wasn’t either,  They are summarized below:

The entire document may be viewed by clicking here.

Finally, more details are available by clicking here to link to the

  • Fund Fact Sheet
  • Fund Profile
  • Prospectus

You will probably find the Fund Fact Sheet and Fund Profile to be the easiest to understand.  However, the Prospectus is also a very important document.   Not sure what it is?  Next time I’ll go into details about a prospectus and why it is a valuable document to you as a potential investor or investor.

To summarize, this series of five blogs has:

  • Given a quick  lesson on the concept of investing through a screening process referred to as a lens. 
  • Explained the characteristics of the board of directors and C-level executives in publicly held companies
  • Shown how one firm is applying a gender lens to companies based on their ratio of women to men in leadership positions and the acceptance of practices as stated in the Women’s Empowerment Principles.
  • Provided links to additional  and more detailed  information on a mutual fund, Pax Ellevate Global Women’s Index Fund, which is the example used in these posts.

It will be interesting to see how this concepts spreads and impacts the world of big business and the quality of the lives of both women and men.

Please share this information with those around you.

Until next time.

 

(This information is designed to educate you about basic financial management concepts. Questions relevant to personal finances specific to the individual should be address to an appropriate professional to ensure that the situation has been evaluated carefully and appropriately. The Authors and Publisher specifically disclaim any liability loss, or risk which is incurred as a consequence directly or indirectly from the use and application of any contents of this work.)

Copyright2014©by Debra Hadsall