The gender wage gap between men and women is not a secret. However, the lesser known, and potentially larger, gender income disparity doesn’t just come down to the number on your paycheck. Rather, the biggest gap could come from how that paycheck is invested. That is why Ellevest, a women’s investing app, is launching in Denver tonight at 6 p.m. at Union Station. Created by former Wall Street CEO Sallie Krawcheck launched Ellevest in order to help women close this gap.
According to various studies, women tend to invest differently than men. While women have the savvy to invest, they often are less risk-averse and less confident when investing. In an interview with Fortune Krawcheck explained that one reason may lie in how the investing world is oriented.
“[Wall Street is] full of sports and war analogies. Beating the market. Outperforming. Picking a winner. No woman looks at [investing] and is like, ‘Wow, that really speaks to me.’”
Ellevest is the first digital investing platform targeted for women. It takes your profile information; name, age, location and salary, and creates a personalized plan for you to reach your goals. Users can plan short term or long term goals, varying from vacations to retirement. It takes into account the lifetime salary curve since women on average live longer but make less than men.
According to Ellevest projections, a local woman making about $72K annually who is not investing is losing about $60 each day over a 40-year period. Ellevest reaches out to women to encourage investing and making the process easier. The digital advisor finds a risk that works with your goals and monitors your portfolio every day to ensure you are on track.
There is no minimum balance required to use Ellevest, however, it does charge a 0.5 percent fee. Beth Dillon, PR Director, suggests for women to start investing early.
“I know when I was in my mid-20s that was the last thing on my mind! Had I had Ellevest then – my financial future would be looking a lot better,” she said.
To meet with Krawcheck and get early access to Ellevest, RSVP here.