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Why For Women?

This is the best time in history to be a woman.

There are 75 million of us in the U.S. workforce; we’re educated like never before, earning like never before and starting our own businesses like never before. Sure, we still have a long way to go, but as barriers fall—indeed, as we pull down those barriers—we have the opportunity to live lives that our mothers and grandmothers couldn’t have imagined.

Yet with all of the discussion we’re having on closing gender gaps, one area that has received little attention—and which can have a big impact on our lives—is the gender investing gap.

We’ve heard the tired conventional wisdom that we women don’t invest as much as men do because we’re “bad at math” (uh, no…that’s not what the research shows); that we’re not as good at investing as men (no, again…try better investors than men); or that we “need more hand-holding” (seriously?? and I only recently read this). Conventional wisdom here is wrong, wrong, wrong, wrong. Wrong.

I’m done. Just done.

Our team at Ellevest has spent the last year engaging with all of you, building on my many (many) years in the industry, to work through how planning and investing needs to change, to work well for us women.

You’re telling us that something different, something smart, something that meets your real needs, something that doesn’t drown us in market minutiae, something that respects our time and intelligence, something that isn’t just “off the shelf” is required.

And that what’s different about us women is not the tired tropes of “Honey, math is hard,” but instead that our needs are different than men’s. That’s in part because we live longer, earn less (for now) and step in and out of the workforce more than men do. Those really matter when it comes to investing. And we also simply think about investing differently.

Mind you, that’s if we think about it at all: you’ve told us that investing is not a goal in and of itself. (How many of us are really watching Mad Money in the evenings?) It is instead a means to an end. And that end is to build full, interesting, awesome lives for ourselves.

And so we’re hard at work reimagining investing for women, and trying to pull down the barriers you’ve told us have kept investing out of reach. We’ve still got work to do before we launch, so we can’t share too much. But rest assured, we’re making it all about you reaching your goals. On your terms. Minus the tired and dated archetypes and the tired and dated judgment.

Closing the investing gap—and having our money work harder for us—will help us start our businesses, buy our dream homes, take care of our families, reach our big life goals and achieve even more. This matters for all of us and for our families.

And if I want my hand held, I promise, it won’t be by some investment advisor.

The results shown assume Elle contributes 20% of her salary annually. We assume her salary changes over time based upon a women-specific salary curve from Morningstar Investment Management LLC*. The savings account results assume compounding growth of 1% annually. The investment account results assume a low cost diversified portfolio comprised of 60% Large Cap US stocks and 40% US bonds, which is rebalanced to this allocation each year. These results are determined using a Monte Carlo simulation—a forward looking, computer-based calculation in which we run portfolios and savings rates through hundreds of different economic scenarios to determine a range of possible outcomes. The figures shown for the investment account include the impact of taxes and inflation, and reflect an 85% likelihood of achieving an amount of $1,998,522 or better, and a 50% likelihood of achieving an amount of $2,746,106 or better.

The results presented are hypothetical, and do not reflect actual investment results, the performance of any Ellevest product, or any account of any Ellevest client, which may vary materially from the results portrayed for various reasons. The results presented are not for any specific product and do not take into account specific product fees. Financial forecasts, rates of return, risk, inflation, and other assumptions have been used as the basis for the results presented.

*Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc.

The assumptions for the savings account and investment portfolio scenarios (no 30% raise) are the same as in the earlier example. The results for the 30% raise scenario assume Elle’s salary begins at $110,500 and changes over time based upon a women-specific salary curve from Morningstar Investment Management LLC*. The figures assume Elle contributes 20% of her salary annually and invests in a low cost diversified portfolio comprised of 60% Large Cap US stocks and 40% US bonds, which is rebalanced to this allocation each year. These results are determined using a Monte Carlo simulation—a forward looking, computer-based calculation in which we run portfolios and savings rates through hundreds of different economic scenarios to determine a range of possible outcomes. The amounts shown for the 30% raise and investment portfolio include the impact of taxes and inflation, and reflect an 85% likelihood of achieving an amount of $2,541,878 or better, and a 50% likelihood of achieving an amount of $3,863,944 or better.

The results presented are hypothetical, and do not reflect actual investment results, the performance of any Ellevest product, or any account of any Ellevest client, which may vary materially from the results portrayed for various reasons. The results presented are not for any specific product and do not take into account specific product fees. Financial forecasts, rates of return, risk, inflation, and other assumptions have been used as the basis for the results presented.

*Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc.

The results shown assume Elle takes a 2-year career break in 5 years, during which she will have no earnings (and therefore no savings). In all other years, we assume she saves 20% of her salary annually. We assume she re-enters the workforce in year 7, at a salary that is 20% less than her pre-break salary, and that her salary changes over time based upon a women-specific salary curve from Morningstar Investment Management LLC*. The savings account results assume compounding growth of 1% annually. The investment account results assume a low cost diversified portfolio comprised of 60% Large Cap US stocks and 40% US bonds, which is rebalanced to this allocation each year. These projections are determined using a Monte Carlo simulation—a forward looking, computer-based calculation in which we run portfolios and savings rates through hundreds of different economic scenarios to determine a range of possible outcomes. The figures shown for the investment account include the impact of taxes and inflation, and reflect an 85% likelihood of achieving an amount of $1,447,010 or better.

The results presented are hypothetical, and do not reflect actual investment results, the performance of any Ellevest product, or any account of any Ellevest client, which may vary materially from the results portrayed for various reasons. The results presented are not for any specific product and do not take into account specific product fees. Financial forecasts, rates of return, risk, inflation, and other assumptions have been used as the basis for the results presented.

*Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc.

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