This episode is part two of the “New Year, Fiercest You” series dedicated to teaching women how to take ownership of their finances. Tara talks all things money with Maggie Klokkenga, a Financial Coach and Planner at Make A Money Mindshift. Maggie offers women advice on investing, whether they’re just starting out or considered more advanced investors.

Starting at the beginning

Just the word “investment” can elicit fear and anxiety — often, because people don’t know where to start. Tara and Maggie launch this episode with guidance for women who may be just starting to take ownership of their finances. An investment account is important to building wealth, and Maggie explains the difference between a savings account through an online bank versus an investment account within the stock market. Maggie describes investing as a way to honor your future self, talks about emergency funds, and details the difference between brick-and-mortar banks and online banks.

The next step

Once you have a savings account and emergency fund built up, you may be ready to start investing. While you may think you need a considerable amount of money to invest, that is not the case. Maggie typically recommends starting with $100, but you can start with less. Maggie walks us through the steps of investing, from finding an online brokerage account to choosing a fund or a fractional share of a stock.

Investment accounts versus funds

Maggie uses the analogy of a bag of chips to clarify the difference between an investment account and the actual funds in the account. The investment account is like the bag, and the funds in the account are like the chips within — all the chips have the same taste and texture, but are still a little different from each other. A taxable account, investment account, and 401K are all different bags containing chips. Maggie also explains the difference between a taxable investment account and a nontaxable account, such as a retirement account, and how funds are treated in each.

Leveling up

Maggie recommends several resources to women who want to learn more about investing, including specific articles, podcasts, and websites. She also discusses capital gains and doing what you can to ensure you stay in a lower tax bracket. For women who may be at a more advanced level with their finances, Maggie suggests they diversify their portfolio — balancing your portfolio with fixed income, such as bonds or CDs, in addition to mutual funds or index funds.

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