Frugal Friends Podcast

Episode: The 4 BIGGEST Mistakes Women Make When Investing | Investing For Women

Hosts: Jen Smith & Jill Sirianni
Date: September 30, 2025

Episode Overview

This empowering episode is dedicated to demystifying investing for women and helping listeners overcome the unique challenges women face in building wealth. Jen and Jill outline the four most costly mistakes women make when investing and offer practical, encouraging strategies to avoid them—sprinkled throughout with personal anecdotes, humor, and strong calls for financial independence. The central message: investing early, gaining practical knowledge, and maintaining direct involvement are the keys to a secure financial future for women.

Main Discussion & Key Insights

1. Why Investing Matters More for Women

• Historical Context:

  • Women were prohibited from independently opening bank and investment accounts until the 1970s ([00:41], Jill).
  • “In America, men have been able to invest since the 1700s… Women weren't even able to open up a bank account without their husbands until the 1970s. So we've got a lot of catching up to do.” – Jill [00:52]

• Why Women Need More:

  • Women live, on average, six years longer than men ([04:00], Jill & Jen).
  • They are more likely to retire early due to caregiving responsibilities.
  • Women collectively spend $15 billion more per year on healthcare compared to men ([04:32], Jen).
  • Many report not saving enough for retirement because of these challenges — particularly millennial and Gen X women.

• Honor the Progress:

  • “We have a responsibility to the women who came before us to exercise the rights that they worked really hard to get for us.” – Jen [05:13]

2. The 4 Biggest Investing Mistakes Women Make (And How to Fix Them)

Mistake #1: Waiting Too Long to Start Investing

• The power of time in the market:

  • Jen presents an example comparing investing at age 30 versus 40 ([06:28]):
    • Sarah invests $100/month from 30 to 60 ($36,000 total) → Ends up with $113,000 at 7% return.
    • Ashley waits until 40, invests $200/month from 40 to 60 ($48,000 total) → Ends up with $98,000.
    • Conclusion: Ashley saves more but has less at retirement, demonstrating the power of starting early.
  • Notable quote: “Time in the market outweighs timing the market.” – Jen [07:11]

• Common barrier:

  • 27% of women (Fidelity study, 2023) don't invest for retirement because they feel they don’t make enough ([08:11], Jill).
  • “There is not a minimum amount of money you need to be earning to invest.” – Jen [08:55]

• Solution:

  • Start now, whatever your income or life stage ([08:55], Jen).

Mistake #2: Keeping Too Much Money in Cash

• Why it happens:

  • Cultural and social norms make women more risk-averse, preferring liquidity.
  • “Women do care about saving. We do save, but we are also scared of being illiquid.” – Jen [10:19]

• Risks:

  • Cash loses value over time due to inflation (average 3% over 30 years).
  • Savings beyond an emergency fund should be invested for growth.

• Best practices:

  • Maintain 3–6 months barebones living expenses in a high-yield savings account ([11:46], Jill).
  • Use a Roth IRA for flexibility—contributions can be withdrawn without penalty if needed ([10:19], Jen).
  • “If you meet the income limits for a Roth IRA, every penny you put in… you can take out at any time.” – Jen [10:44]

Mistake #3: Not Actually Investing the Money in Your IRA

• Widespread error:

  • It’s common to deposit cash into an IRA without buying investments (mutual funds, index funds, ETFs) ([14:06–15:41], Jen & Jill).
  • “The IRA is just that—an account. And unlike your normal checking banking account, your IRA can hold both cash and stocks.” – Jen [15:19]
  • Not investing is equivalent to leaving it in a glorified savings account.

• Solution:

  • Check that your IRA funds are allocated to investments (“holdings” section) and not just sitting in the money market/settlement account ([16:27], Jill).
  • Set up automatic investment (buy) instructions—not just deposits.

• Notable moment:

  • Suggestion to visit YouTube (around 16:00) for a visual walkthrough.

Mistake #4: Relying on Someone Else to Manage Your Investments

• The risks:

  • Loss of control and knowledge—dangerous because women tend to outlive men ([18:22], Jill).
  • Over-reliance not just on partners but also on potentially high-fee financial advisors.

• Practical advice:

  • Know how and what you’re invested in, even if you have help ([22:26], Jill).
  • Understand advisor fees—aim for fee-only, fiduciary CFPs at 1% or less; beware hidden charges.
  • “The most you should pay with a financial advisor is 1% assets under management, not the 5% you sometimes see… that can really cost you—over a lifetime it can cost people over a hundred thousand dollars.” – Jen [20:41]

• Empowerment:

  • “You don't have to love it… We can do things that we don't love. We can do hard things. Yes, we can.” – Jill [21:43]
  • Tap friends, free resources, and professional advice for investing basics ([22:26–23:23]).

3. Lightning Round: Hosts’ Most Costly Investing Mistakes ([28:49])

Jen’s Story ([28:49–33:12])

• After rolling over a 401k into an IRA, she forgot to actually invest the funds—$50,000 sat uninvested for a year.
• Even as a financial writer, she felt embarrassed and highlights how confusing it can be.
• Solution learned: Seek help (she recommends using Capitalize for 401k rollovers).

Jill’s Stories ([33:12–36:19])

• Set up an automatic deposit into her Roth IRA but never actually purchased investments; it sat as cash for a year or more.
• Assumed one Roth IRA was sufficient for both her and her husband—not realizing each individual needs their own IRA.
  • Notable quote: “You are different people. Even though you've become same, you're different. And you each need to have your own Roth IRA.” – Jill [35:40]

Lesson:

Everyone makes mistakes—what counts is course-correcting and talking openly about missteps, so others don’t repeat them.

Other Memorable Quotes & Moments

• “We absolutely owe it to ourselves and our grandmoms.” – Jill [06:06]
• “The biggest discount you can get on all the things you need to buy when you are old is starting to invest...when you are young.” – Jen [07:36]
• “If you're not sure you bought investments, go check your IRA's holdings now!” – Jill [16:27]
• “If all the money is in their account and they pass, and what are you going to do in the meantime?...Everyone should have their own Roth IRA or IRA.” – Jen [36:19]

Action Steps & Takeaways

• Start early, invest what you can, and don’t let income level be a barrier.
• Limit emergency cash; invest the rest for long-term growth.
• Always complete your IRA setup by purchasing investments.
• Retain agency and knowledge; don’t abdicate your financial future to others.
• Normalize talking about mistakes and asking for help.

Timestamps for Key Segments

• Why Investing Matters for Women: [00:41–06:06]
• Mistake #1: Starting Late: [06:06–08:55]
• Mistake #2: Too Much in Cash: [09:42–12:15]
• Mistake #3: Not Investing IRA Funds: [14:06–18:22]
• Mistake #4: Relying on Others: [18:22–24:23]
• Lightning Round – Personal Mistakes: [28:49–36:19]
• Final Recap and Inspirational Close: [24:40–25:23, 37:38–40:45]

Final Thoughts & Motivation

Jen and Jill stress the importance of taking even small steps toward investing and remind listeners that financial independence equals peace of mind and the ability to honor the legacy of the women before us. The tone is warm, supportive, and gently humorous—undercut with real expertise and lived experience.

“Time in the market trumps timing the market. Start now—even if it’s only $10 a month.” – Jill [24:40]
“Let’s commiserate together… safe space.” – Jen [40:45]

If you’re a woman, or anyone starting out in investing, this episode serves as your permission and encouragement to begin, to keep learning, and to own your financial journey.

Produced by Eric Sirianni
Frugal Friends Podcast – helping you save money, embrace simplicity, and live a richer life.