Money Expert Nicole Lapin’s Secret to Wealth for Millennial Women

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Listening to advice from financial expert Nicole Lapin could help women make the best investment choices.

Key points

  • Nicole Lapin, money expert, businesswoman and host of silver rehabilitation podcast, provides advice for millennial investors, especially women.
  • She advises avoiding get-rich-quick schemes and suggests using a proven investment strategy.

Creating wealth can be a challenge for everyone, but investing is often the key. Unfortunately, many people – and especially millennial and Gen Z women – face obstacles that can make it more difficult to embark on their journey to financial independence.

The good news is that with the right advice, you can make smart investments that increase your net worth. In honor of Women’s History Month, Nicole Lapin shared some advice for L’Ascension readers. Rabbit is the host of silver rehabilitationand she is also an author, businesswoman and television news presenter.

Here are Lapin’s tips for millennial and Gen Z women

Lapin recognizes the unique barriers that women face when it comes to investing. Lapin argues that “the biggest obstacle is that we don’t learn it in school and most of us don’t learn it at home.”

Unfortunately, it’s not just lack of knowledge that stands in the way of women. “Studies have shown that little boys associate powerful words with money, while little girls associate words of scarcity,” says Lapin. “So couple the fact that we don’t learn it with the idea that our socialization around it stems from fear or shame, and it’s no wonder we’re looking at such low percentages of women investing .”

Unfortunately, the gender pay gap also plays a role, with women earning just 80.4% of what men earn in the first quarter of 2020. It’s a gap that, even as the labor market tightens , has proven stubborn to overcome and is likely to persist, with far more men than women planning to seek a raise in the near future.

The good news is that Lapin has a wealth-building secret that many women can take advantage of despite these obstacles – even those who are stressed about money management, intimidated by the investment process, or who haven’t learned how to place their money to work.

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“Stick to the buying average while you index the funds and relax,” says Lapin. This advice is a rock-solid approach to building wealth that has worked for investors for generations. (We’ll explain how to do that below.) His advice mirrors advice given by one of the world’s top investors, Warren Buffett, and it can be particularly valuable to anyone who’s intimidated by investing their money in the market. .

“At the end of the day, money and investing are a language like any other,” Lapin says. “If you go to a foreign country and you don’t speak the language, you’ll be really confused. If you go to Wall Street and you don’t speak the language of money, you’ll be really confused. that, of course, you learn it. Then you can join in the conversation, and you’ll wonder why your old self thought it was so hard in the first place.

Follow his simple wealth-building secret and learning the language becomes easier, as does building a diverse portfolio.

How to put Lapin’s advice into practice

Lapin’s wealth building advice can be successfully followed by just about anyone. But for those without introductory knowledge of investing, his suggestion to invest in index funds may seem difficult. The good news is that cost averaging and index funds are both easy to understand.

Averaging means regularly investing a set amount of money in a particular investment. So, for example, if you want to invest $5,000 per year, you can invest around $417 per month, rather than investing all $5,000 at once. By buying a fixed amount of an asset at regular intervals, you eliminate the challenge of trying to time your investment perfectly.

Chances are that you sometimes buy high and sometimes low. And it doesn’t matter. “Don’t try to time the market,” Lapin advises.

Since no one can predict when an asset’s price will bottom or peak, dollar cost averaging eliminates the guesswork that can lead to failure if you invest all your nest egg at one time. inappropriate.

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Index funds are funds designed to mimic the performance of a specific financial index. When you buy one, your money is split and you get a small stake in all of the assets making up the benchmark index. For example, if you buy into an S&P 500 index fund, you buy a share of each of the roughly 500 major US companies that make up the Standard & Poor’s financial index, widely considered a barometer of the stock market as a whole.

Index funds are low-cost investments because you’re not paying a professional to actively screen investments. And they are low risk investments because of the instant diversification they provide. It takes very little research to choose a good one, and outsized losses are unlikely. They can be one of the safest investments, offering consistent returns over time and eliminating the risk of being scammed, or one of the get-rich-quick ideas Rabbit advises avoiding.

If you use Rabbit’s advice for dollar cost averaging and buy into an index fund like an S&P 500 fund, you’re probably on your way to increasing your net worth because your money is working for you.

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