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To help women take control of their finances, she encourages investors to invest with confidence, rather than placing money in a low-yield savings account.
Although zero risk money market investments are ideally suited to short term needs, such as an emergency fund, savers will lose money over the long term by tracking the rate of return. inflation.
"We put and keep too much money in the bank and we should invest in the markets," Chatzky said.
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The first step is to make saving a priority – aim to set aside 15% of what you earn, she advised – and use those dollars to build an index fund. You do not have to actively trade stocks, Chatzky said; Just pay attention to the approach of your fund to move from stocks to bonds.
If not, opt for a target date fund, which gradually moves from riskier investments to more conservative options in the run-up to retirement.
Then remember to periodically review your portfolio and rebalance it if necessary to ensure that your badet allocation is always in line with your short- and long-term goals.
If you need help, meet a professional. "I'm a big fan of financial advisors," Chatzky said.
Financial advisors can also play an important role in solving specific financial problems, such as a job change, a move, an illness, a change of civil status, the purchase or selling a house or paying for a child's studies.
"Your advisor may ask you to increase your savings rate, restructure the way you pay your debts, [or] help you develop strategies to avoid taxes, "she added. All of these solutions offer quantifiable performance. "
Disclosure: NBCUniversal and Comcast Ventures Invest in acorns.
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