But if even $20,000 of that cash was invested in a conservative portfolio mix? Over five years, in a typical market, the money could potentially swell by $5,733 vs. $80 in a basic savings account (and potentially $2,961 in a typical five-year CD). Millennial women would seem to be taking those numbers most seriously, which accounts for much of the optimism underlying the report. Forty-eight percent of them are already investing their cash, as opposed to about 40 percent of both Baby Boomers and Gen Xers. “This is the first time in almost a decade of doing this research that we’ve seen Millennial women on track to really lead the way,” notes Murphy. Don’t misunderstand: No one’s saying people – men or women – shouldn’t keep at least enough cash on hand in savings to cover three to six months of living expenses. That’s a fundamental rule of thumb among financial advisors. And Murphy contends that women who do invest actually turn out to be “great” at it for this simple reason: They come up with a long-term plan based on their own or their family’s goals, and then they allow their investments to grow without tending to make the mistake of trying to time the market. Many online tools can help women looking to better manage their financial lives. As for why women lag behind men in investing, Murphy has her own theory: “Sixty-five percent of them equate it with picking stocks. But it’s not about that. It’s about having a financial plan and sticking to it.”
