9 financial planning rules for women

Fight market phobia
Fight market phobia © Andrey_Popov/

Fight market phobia

Financial security is usually a high priority for women investors, and as such they tend to take a more conservative approach than men do, says Laura Scharr-Bykowsky, principal of Ascend Financial Planning in Columbia, South Carolina.

But being too conservative, not to mention shying away from the stock market altogether, can actually leave you more financially vulnerable.

"If you're in a money market with all cash because you're afraid of market volatility, inflation is quickly eating into that cash," Scharr-Bykowsky says. "It seems like a smart strategy, but that actually could be the riskier strategy. You're going to outlive your money if you're sitting on all that cash."

Fain says pulling back on your stock market allocation makes sense if you're going to need that money in a short time -- say, less than three years.

"However, if you're planning for retirement in about 30 years, the stock market is a wonderful place to grow your money," she says.


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