Make your money work

What's your money language?

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Investing is an opportunity to gain and grow. Make your money work as hard as you do and find the investment choices right for you.

The point of investing is to grow wealth over time. The sooner you put your money to work, the greater your potential is to build more wealth. The risk of not investing is that your dollars today are worth less in the future because of inflation [see Cash module] and opportunity cost – you miss out on potential investment returns. 

Women have even more reasons to invest

Women around the world are outliving men*, and a longer lifespan means a longer retirement. 

So how do you invest for a long life? You can purchase a range of assets such as stocks and bonds. Stocks give shareholders ownership in a company. Bonds are loans issued by companies and governments that pay interest. Stocks and bonds are subject to greater fluctuations in value than cash. But they offer greater potential for gain and prospects for building wealth over time.

With so many investment options, finding the ones that are right for you can be a challenge. Start with 3 easy steps.

Know what your goals are. A house? Retirement? Giving to children and charity?

Ask yourself a series of questions to help in framing your needs

  • What do you want to accomplish in your life?
  • What are your main concerns?
  • What do you want your legacy to be?
  • Who are the people that matter most to you?
  • How do you plan to achieve your life’s vision?

Then think about your wealth along three key dimensions

Eight out of 10 women believe organizing wealth in this way is a good financial strategy.

Liquidity – The next three years
  • Entertainment and travel
  • Taxes
  • Purchasing a home
Longevity – Four years – lifetime
  • Retirement
  • Healthcare and long-term care expenses
  • Second home
Legacy – Now – beyond your lifetime
  • Giving to family
  • Philanthropy
  • Wealth transfer over generations

Time horizon and risk appetite

Each of your goals will have an associated timeline. For example, if your 7 year-old will start college at age 17, you have ten years before you need to access those funds you've saved for tuition. The amount of time you have to invest for specific goals can inform the types of investments that are right for you. Generally, you can assume more risk if you have a longer investment horizon because you have more time to weather market ups and downs.

However, your risk appetite and ability to tolerate fluctuations due to market volatility is highly personal. Bear in mind that higher potential returns generally mean more risk, and any money you may need in the next three years should be kept in investments that are readily accessible, with little risk of declining in value.

Ask for help

Anyone can invest on her own with enough time and interest. But if those are in short supply, it may make sense to work with a Financial Advisor who can help you build a portfolio that's right for you.

A good start is investing in your employer-sponsored 401(k) or IRA account. These investments allow you to save for your retirement and you aren't taxed on the investments until you make withdrawals.

How your money could do more

When it comes to making your money work for you, time can be your best friend.
 

See long description
Long Description

The hypothetical example above shows two investors who each had 30 years to grow their money. 1 Investor 1 got started right away, while Investor 2 waited until he had more for his initial investment. In this scenario, although Investor 1 had a smaller amount to begin with, the power of compounding—and time—was on her side. 

Key Takeaways:

  • The answer to whether you should save or invest depends largely on your goals and your unique financial situation. 
  • Whether you're starting from scratch or have some money saved, the key is getting your money to work for you.
  • Compound interest, or earning interest on interest, can help your money grow even faster.If you can start early, you've got some of the bet investor allies on your side—compounding and time.
  • When investing, it is a good idea to consider if you could benefit from professional advice. 

1Assumes investments return 5% annually.  *

Longer to live, longer to enjoy

Women around the world are outliving men *, and a longer lifespan means a longer retirement.

No matter the length of your retirement, figuring out whether you have enough money to achieve your goals should take into account:

  • Your net worth
  • Income and expenses
  • When you want to retire
  • Whether you will need to support aging parents or adult children
  • The potential growth of your assets
  • Whether you want to pass assets to the next generation.

Visit the UBS Investor watch website to learn how you can plan for retirement breaking it down into three phases: Transition, Me Time and the Last Waltz

U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Health Statistics, 2016.

Planning for your "longevity bonus"

Your life is more than a pie chart

Want more?


Are you ready to own your worth?

Connect with your UBS Financial Advisor or click here to find one.

 

*This content has been provided under arrangement with Imprint. It may have been modified to meet the specific needs of UBS. Imprint is not responsible for any errors in the content, or any actions taken in reliance on it. Please do not copy or excerpt this content without express permission from UBS. UBS and Imprint are not affiliated.