Timeless investing advice from Wall Street's woman pioneer
Muriel 鈥淢ickie鈥� Siebert: That name probably doesn鈥檛 ring a bell for most Americans. But this Wall Street pioneer deserves more than just a footnote in the history books.
Fifty years ago, Siebert became the first woman to buy a seat on the New York Stock Exchange. She was the sole female trader among 1,300-plus male traders for more than a decade. She was the first woman to own a discount brokerage firm and later launched initiatives to help women take control of their financial destinies. Siebert died in 2013 at age 84.
Whether you鈥檙e learning聽聽or a seasoned veteran of the market, Siebert鈥檚 advice still resonates, particularly during Women鈥檚 History Month. Here are three tips inspired by some of her oft-colorful quotes.
1. Understand the risk
鈥淚f you鈥檙e not willing to accept the worst that can happen, don鈥檛 do it.鈥�
This chapter subtitle from Siebert鈥檚 2002 book, 鈥淐hanging the Rules: Adventures of a Wall Street Maverick,鈥� offers a good reminder about the inherent risks of investing.
Before you start buying stocks, make sure you have the funds to do so. If you鈥檙e behind on monthly expenses, have high-interest debt or meager savings set aside to cover emergencies, prioritize those first. In addition, you鈥檙e better off taking advantage of your employer鈥檚 401(k) match plan and investing in an individual retirement account before dabbling in individual stocks.
If investing makes financial sense 鈥� and it鈥檚 money you don鈥檛 need for at least the next five years 鈥� choose investments that reduce your chances of a worst-case scenario (losing all of your money). If you鈥檙e unsure how to do that, review the NerdWallet guide on.
Piling all of your money into a single stock is risky because your investment is at the whim of one company鈥檚 performance. To minimize that risk, you can diversify your portfolio by investing in a variety of companies in different industries or buying a broader collection of stocks through an exchange-traded fund or mutual fund. Outside of equities, U.S. Treasury bonds are among the safest investments.
If more than 10 years separate you from retirement 鈥� or whatever your goal is for this investment 鈥� consider allocating a larger share of your portfolio (70% or more) to equities rather than bonds. As your goal approaches, you can ratchet down the amount allocated to stocks.
2. Stay the course
鈥淪o I tell people, stick to your guns. You will make money eventually.鈥�
Siebert offered this advice in a 1997 interview with the Los Angeles Times, addressing聽investors who are tempted to chase hot stocks when their picks are underperforming. Investing in stocks requires a steel stomach during tough times and a telescope-like focus on the long term. You may be tempted by get-rich-quick stock tips, but pursuing those is more akin to gambling than investing.
鈥淪tick to your guns鈥� is an endorsement of investing for the long term. If you鈥檝e only been invested in the market a few years, you (blissfully) missed how gut-wrenching it was to watch your portfolio鈥檚 value plummet during the 2008 financial crisis. But investors who didn鈥檛 rush for the exits have gone on to enjoy the聽聽in U.S. history, one that鈥檚 seen the Standard & Poor鈥檚 500 Index soar more than 250%.
There undoubtedly will be tough years during the course of your investment horizon, but a commitment to investing and a well-diversified strategy have consistently proven fruitful over the long term.
3. You鈥檙e in the driver鈥檚 seat
鈥淚f you are going to sit there and wait for other people to do things for you, you will soon be 80 years old and look back and say, 鈥楬ey, what did I do?鈥欌��
Siebert wasn鈥檛 afraid of taking risks in her life. She dropped out of college after her father died and headed for New York with just $500 and her audacious spirit.
Siebert鈥檚 fearlessness underlines that no matter your life situation 鈥� single, coupled, married, divorced, widowed or something else 鈥� you鈥檙e in the driver鈥檚 seat when it comes to your financial destiny.
Siebert got an early start on her ambitions when she left college. In investing, too, an early start can be helpful. There are numerous virtues to聽, though you shouldn鈥檛 get discouraged if you鈥檙e off to a late start.
If you鈥檙e a hands-on type like Siebert, you may open a brokerage account and select your own investments. If you don鈥檛 have time for this, you might invest through a聽, an automated online advisor that selects your investments based on your stated goals. Whatever path you choose, don鈥檛 wait for other people to move you forward.
Living Siebert鈥檚 lessons
Investing is often a risky, patience-testing and self-directed endeavor 鈥� attributes that can make it intimidating. While you can rest assured that many others like you have navigated this journey before, that wasn鈥檛 the case for Siebert 鈥� and that鈥檚 why she鈥檚 heralded as a trailblazer who made investing more accessible for women everywhere.
It鈥檚 not surprising, then, that she wrote in her 2002 book that one of her life mottos was: 鈥淲hen you hit a closed door and it doesn鈥檛 budge, just rear back and kick it in 鈥� but hold it open so others can follow you.鈥�
Anna-Louise Jackson is a staff writer at NerdWallet, a personal finance website. Email:聽ajackson@nerdwallet.com. Twitter:聽.
This story originally appeared on .
