NEW YORK (CBSMiami) – You’ve heard about the gender pay gap but what about the gender investing gap?
A Wall Street veteran has started a new firm geared just for women.
Sallie Krawcheck has been called one of the most powerful women on Wall Street. She’s a former CEO at bother Smith Barney and Merrill Lynch wealth management.
Now the self-proclaimed “financial feminist” has started her own company called Ellevest, an investment platform for women.
“Our society has given us a message that money is a man’s world,” said Krawcheck. “We decided to talk directly to women – because no one else was.”
A TransAmerica survey out last year found men are much more prepared for retirement saving, on average $115 thousand compared to just $34 thousand among women. Krawcheck said Ellevest is the only company using an investment strategy that follows a woman’s career.
“We are the only one that takes into account the fact that they live longer – really important w/ planning for retirement and investing for retirement. We take into account, sadly, their salaries peak sooner,” said Krawcheck.
Daryl Montgomery, an organizer of New York Investing Meet up, is skeptical of gender-centric investing.
“Money is money is money and it doesn’t differ by person or group. Perhaps they are more comfortable dealing with money. But the bottom line should be your return,” he said.
Ellevest has been around for only three years but has already raised more than $30 million. Money, Krawcheck said, that would ultimately help women get ahead.