From Risk Averse Saver to Confident Investor: A Women’s Wealth Client Story
Building financial confidence for women – At Women’s Wealth we are proud to be able to help our clients feel positive and optimistic about their financial lives. This client’s story of financial progress shows how working with a financial advisor is about so much more than money:
The answers below are the thoughts of one of our clients after they worked with us to create a financial plan.
“You said that you were cautious about the process of working with a financial advisor at the start – could you say more about this?”
As a kid of immigrants, the narrative around money was to save save save. Under the mattress, in a bank, stashed in the pocket of a jacket in the back of a cupboard somewhere, whatever – just save it – so I became really good at that.
My parents worked hard and achieved some financial success.
My dad began investing in shares and property developments in the 80s and then the recession/stock market crash hit and hit hard.
We went from having a secure middle-class existence to my parents losing their respective businesses, our home and any pensions they had created. It was a dark time and the lesson I took away was my money was probably safer in the bank. I guess it was the beginning of an aversion to risk where money is concerned – whilst I was unsatisfied that my savings were receiving minimal interest in the bank, it still felt risky to plough everything into a pension rather than have a lump sum sitting around. I wanted to make a change, but my apprehension felt a bit paralysing.
That’s where it was helpful and enlightening to speak to my advisor at Women’s Wealth and understand more about the investment process.
“When we first met you said you were keen to learn how to be an investor – what led you to start thinking about this?”
I think I thought there was some magic process involved that you had to know. My understanding of investing was limited to watching Industry or Trading places!
I imagined myself scanning my laptop endlessly as the prices of my shares went up and down hourly and that all felt a bit stressful to deal with! It felt like investing was something that other people did. Some friends had been into crypto and not only did I not understand it, but the whole thing also weirded me out.
I like things that are tangible, that I can feel and hold – not something that simply hangs in the ethe. But, I was intrigued as to how people were generating an income from their investments.
The idea of a pension, particularly as I am self-employed felt very timely, I was aware that the longer I left it, the less time it would have to hopefully appreciate. I think I thought that I’d keep saving and eventually save enough, to slow down, but working through the figures with my advisor clearly showed the shortfall I would have.
“What had stopped you from investing yourself?”
I would say fear of the unknown stopped me from seeking my own investment path out – that, and probably that I didn’t want to make a dud investment with my very precious savings.
“You said getting your pension and ISA set up felt like a real achievement – could you say more about this?”
I chose to retrain as a therapist when my son was 4 – around this time, I also became a solo parent.
Financially, life was a real juggle. I worked as a teaching assistant around my son’s school hours whilst studying and trying to rebuild my life. I was claiming housing benefit and tax credits and my son was on free school meals throughout primary school. I knew that this was just a moment in time and once I had qualified life would be different, but there were some scary times along the way and certainly no money to spare.
Fast forward 10 years since qualifying and I have grown a successful and fulfilling private practice.
As soon as I was able to start saving again, I put a bit by every month and in a few years. I had a decent lump sum with which to start my pension with. That had felt very unachievable even a few years back, so I am proud of what I have worked hard to create.
“What do you think other women would get out of having a financial adviser?”
I think something that was important for me was understanding why I felt risk averse and that it wasn’t necessarily a bad thing or would prohibit me from making good investing choices.
Exploring my money habitudes was very enlightening – I’m naturally interested in the psychology of money behaviour and limiting beliefs.
I think women deserve to feel supported and skilled in their financial decisions – particularly women of colour.
For me personally, it’s felt like the world of finance and investing was for white men, that I somehow didn’t have a place at the table.
Whilst I’m excellent at saving, I’m a little avoidant about long term planning for after I’m gone and my advisor’s advice around that was really helpful.
Having a financial advisor has also been super useful around my personal tax and banking questions. I think it should be part of self-care to have someone to be thoughtful about your financial decisions, in the same way you might have a personal trainer or therapist.
I’ve felt a bit more at ease now I know that I have started my pension. It was a bit of a weight off, particularly learning that this will also provide some tax relief!
I know how to work, and I know how to save, but having a financial advisor has helped me work and save smarter.
Are you ready to plan for YOUR fabulous financial future?
We love supporting our clients to learn what they need to learn to achieve their ideal future. We would love to talk to you to explore how financial planning would improve your life.
If you would like to learn more you can book a free 15 minute discovery call here.