Welcome to our #113 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we focus on a recent survey by Fidelity International which highlights that only 45% of women ‘feel financially independent’.
We know that a woman’s life trajectory is different to a man’s but women are exposed to far more financial risk which makes them vulnerable to financial shock.
Staying engaged around finances and investing for the long-term is crucial for women.
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You can review the news in brief so you stay on top of global financial, economic and investing trends.
And don’t forget to listen to The Purse Podcast interview with Dr Louann Brizendine. We talk about the menopause, how the female brain gets stronger and better in midlife and how to stay on track with your finances.
I hope you enjoy this week’s newsletter.
Until next week,
Jana
45% of women ‘feel financially independent’
Survey highlights the harsh financial reality for the majority of women
Based on a survey by Fidelity International, the majority of women (55%) do not feel financially independent, as reported by Yahoo Finance.
Here are the key findings from the survey:
45% of women feel financially independent
38% of those who do not consider themselves financially independent feel unable to make their own life choices
11% of women are doubtful they will ever achieve financial independence
48% of women cited the high cost of living as the biggest barrier to improving their finances
19% of women are worried about their ability to support themselves or their family
28% are free from money worries
32% feel confident about reaching their financial goals
31% are expecting to live comfortably in retirement
Fidelity also found women in the UK were more likely to feel financially secure than those in Germany (33%) and Japan (38%) and financial security was at similar levels in Singapore (46%). Those in China (69%) and Taiwan (72%) tended to report feeling more secure.
Maike Currie, investment director at Fidelity International said:
“Low income levels, fears about job security and the compromise many women are forced to make between work and caring responsibilities are all named as barriers to achieving financial independence…
We all have a central role to play in breaking down the barriers which are currently stacked against women and impact their financial wellbeing.”
…than men regardless of whether they have children and on average have one fifth of the pension pot men do when they retire.
They are more likely to have career interruptions and do far more unpaid childcare work than men do.
Women who are divorced or separated have less savings than their ex-partners and are more likely to suffer from a mental health condition which can become a barrier to work especially as women get older.
And 9 out of 10 women will be the sole decision-maker in their household about their finances at some point in their life.
Not only is a woman’s life trajectory different to a man’s but women are exposed to far more financial risk, which makes them vulnerable to financial shock.
In reality, women need to…
…save and invest far more than men to build financial resilience, financial security and secure their financial future.
Engaging around finances and investing for the long-term is critical for women.
If married, in a partnership or a couple, it is not a good idea to ‘handover’ responsibility to your partner.
Always stay engaged. And be involved in all key financial decision-making.
At the very least women should arrange a weekly ‘money date’ with their partner to review the finances and discuss long-term investment goals and decisions.
And if single, women can schedule weekly or monthly check ins with a friend or accountability partner, join a community of like-minded women or work with a financial adviser or a financial coach.
What next? (Re) Listen to:
News in Brief
Financial news
The biggest bond bubble in 800 years continues to deflate after the latest inflation numbers shake up the bond markets. The value of global bonds has dropped by another $493bn this week, bringing total loss from the all-time high to $7.94tn.
The Nasdaq plunged 4.5% on Friday into bear market territory again. Now down 22.5% from Nov 2021 high. (The Nasdaq fell 13% in April which is the biggest monthly drop since 2008).
Russia appears to be on track to avoid looming sovereign default after tapping its domestic Dollar reserves to make payments on 2 foreign bonds.
The US Federal Reserve 2022 hawkishness hit another all-time high. Now more than ten 25bp Fed hike moves priced in for 2022, so markets see Fed Fund rate of 2.9% by Dec 2022.
US Economy unexpectedly shrank in Q1, the first contraction since 2020. as GDP fell at 1.4% annualised rate after a 6.9% pace of growth in Q4 2021.
The Bank of England (BoE) is set to raise interest rates again on Thursday to their highest level for 13 years. The Bank’s policymakers are predicted to increase rates from 0.75% to 1% – a level not seen since early 2009.
Cathie Wood’s Flagship Fund Ark Innovation fared worst-ever month with a 29% drop.
Crypto: bitcoin, ethereum, DeFi & NFTs
Bitcoin climbs above $40,000 but struggles to stay above that level. ‘There has been particularly heavy selling pressure ‘at the $40,000-$40,500 price levels’ (see the current price of bitcoin).
Bitcoin: market senitment is not as strong as on-chain activity.
The state of Bitcoin can be demonstrated with on-chain metrics that paint a more bullish picture than the current derivatives market sentiment.
Swiss National Bank not ready to hold bitcoin as reserve currency. They currently do not believe ‘ bitcoin meets the requirements of currency reserves’.
Goldman Sachs offers its firm bitcoin-backed loan. Goldman has reportedly offered its first ever lending facility backed by BTC as the Wall Street giant deepens its bitcoin offerings.
Fidelity to allow retirement savings allocation to bitcoin in 401(k) accounts. The family controlled asset manager said MicroStrategy, a major bitcoin corporate backer, will be the first employer to use the new product, which will be made available to other employers by the middle of the year.
State of Ethereum Q1 2022: network revenue increased 46% from $1.6bn to $2.4bn, ETH Staked rose 111% from 5.2m to 10.9m, DeFi TVL increased 82% from $49.1bn to $89.5bn.
Beeple: next era of NFTs will focus on 'emotional connection and utility'.
The Purse Podcast
We cover the following in our conversation:
The menopause aka ‘the upgrade’
What happens to the female brain as we transition
Why women over 50+ are more likely to ask for a divorce
How these changes affect a woman’s financial life
And how to make sure your well-being and finances stay on track.
Please enjoy! Listen here on Apple podcasts and Spotify+
Coffee Break? Read This
How will we count the cost of having a baby during the pandemic?
My mother was a ruthless ditcher of friends – should I dump my most annoying mates?
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
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The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.
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