According to a recent Nielsen report, women will control two-thirds of America's consumer wealth in less than a decade. Women already control 60% of the net-worth in America and make 85% of the financial decisions and with that economic power, a responsibility comes as well, according to Sharon Lechter, co-author of the "Rich Dad, Poor Dad" book series and expert on financial literacy. She says women need to educate themselves on not only how to invest wisely but preserving capital and helping it grow at the same time. A lot of women, she says, tend to hand over that economic responsibility to their male partners and rely on their credit ratings.
Recent studies have shown that women are looking into alternative investments more than men, which doesn't surprise Lechter. With alternative investments comes an "excitement in learning something new and educating ourselves," and as such, women tend to form investment clubs and groups. Investors of a whole, given the recent stock market volatility, are looking for a balance of alternative investments as well as the traditional stock investments.
While Lechter feels the steps for success are the same for both men and women, they are approached differently. The climate has also changed to favor women, who tend to excel in a collaborative environment. Women need to respect their positions of power to support the economy going forward, she adds.
With respect to women having access to capital, Lechter sees a move towards strategic partnerships and alliances, rather than going out for a specific bank loan individually. In doing so, they are using other people's money and resources to build a joint venture environment and women excel in this type of environment. As well, women are seeking out alternative investment strategies, in addition to alternative financing options. This area still proves difficult for women to get venture funding, adds Lechter.
One of the biggest issues Lechter sees for women in business is a lack of self-confidence. She says it's important for women to support each other in this regard to be each other's advocates while each woman grows in their own self-confidence.
Sharon Lechter, co-author of the "Rich Dad, Poor Dad" book series and expert on financial literacy, spoke with Alternative Investing News, providing online alternative investing video news content. Her most recent project is "Think and Grow Rich for Women, Using Your Power to Create Success and Significance." Alternative Investing News is a featured network of Sequence Media Group. This video was brought to you by Vantage Self-Directed Retirement Plans.