3 Things Women Can Learn About Money From Kamala Harris’ Financial Moves

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Kamala Harris’ most recent public financial disclosure report gives us some insights into how the vice president has invested her money — and it turns out she keeps most of it in index funds and cash. Her fairly conservative allocation of funds can serve as a good model for women who may be just starting out in their investment journey or who may be more risk-averse.

Here’s what women can learn from Harris’ financial decisions — and what they may want to do differently.

Boring Doesn’t Mean Stagnant

Harris’ investments can be seen as “boring” or “conservative,” but this does not equate to stagnant growth, said Jordan Sowhangar, vice president and wealth advisor at Girard, a Univest Wealth Division.

“It’s a lesson in what regular, accessible investment vehicles like mutual funds or exchange-traded funds can do for someone’s portfolio over time,” she said. “It’s proof that you don’t need to take on an extreme amount of risk in alternative or ‘sexier’ investments in order to achieve an acceptable return on your investments.”

Diversification Is a Smart Strategy

Harris holds a diverse investment portfolio, and Sowhangar recommends that other women do the same.

“Diversification, or spreading out your investments over various asset classes, areas of the market, risk levels, etc., really is key,” she said. “The way to properly mitigate risk is to not have an overexposed area in your portfolio, and on the surface, it seems that Harris has worked to achieve that through her investments and real estate holdings.”

Make Changes as Needed

Harris’ financial disclosure shows that she has bought and sold several assets since her previous disclosure. Sowhangar also recommends adjusting your investment mix as needed.

“Adjusting your portfolio over time and either in response to — or ideally proactively to — changes in the market and economic environment, personal financial changes, etc., is necessary to ensure your portfolio aligns with you, your goals and your risk appetite at varying points in your life,” she said. “[It] also potentially enhances the performance of the overall portfolio.”

Should Every Woman Invest Like Harris?

Overall, Sowhangar believes that Harris has demonstrated a sound investment strategy.

“The way Harris has been seemingly handling her investments is a solid strategy for those looking for a generally reliable blueprint for growing assets over time in a fairly consistent way,” she said.

However, investing strategies are not one-size-fits-all.

“It’s important to understand that a recommendation to possibly emulate what Harris has done doesn’t mean every woman should go out and buy the exact same mutual funds or exchange-traded funds that she has, nor that everyone should necessarily hold that much of their overall wealth in cash or bank solutions,” Sowhangar said.

“It’s imperative that women look to what Harris has done as a possible blueprint of what diversification, discipline, time and patience can do for a portfolio, but also know that the underlying holdings specifically may or may not work for them depending on their personal financial situation, cash flow needs, risk appetite, short- and long-term goals, etc.,” she continued. “These are things that should be reviewed with a financial advisor who can help tailor recommendations specifically to their personal financial plan accordingly.”

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