As a woman who runs a business in an industry traditionally dominated by male advisors, I connect very well with women – whether they are single, married or divorced. I explain complex financial concepts in a clear, jargon-free manner that resonates with women who may not have much experience with wealth management. I share women’s emotions and values and always strive to include them in a household’s financial conversations. Like me, most women are motivated by life consequences, not monetary rewards. To most women, financial success is defined in terms of numbers or percentages, it is more about personal outcomes and life outcomes. Women tend to process things more holistically than men, asking “How will this decision influence my family as a whole?” Whereas men see portfolio performance as separate from family finances and don’t always see the value in financial planning.
Almost half of women lack investing confidence, yet they consistently post slightly better investing returns than men, both as individual and institutional investors. 1,2
There are few prominent women in investing, which can contribute to their lack of confidence. 1,2
Women tend to invest more conservatively: the average woman keeps 68% of her portfolio in cash and cash equivalents, compared to 59% of the average man's portfolio.1
Women are less impulsive investors than men: they make fewer trades and even log into their account less often. 1
Women have a cumulative lifetime earnings gap of around $1,000,000 compared to men at retirement age. This could make investing challenging for women because they have fewer funds. 1
39% of women have given up income or career advancement to care for children or parents. 1
Women spend more time researching their investment choices. 2
While women take on less risk than men, that doesn’t mean they’re risk averse. They’re more likely to take on appropriate levels of risk than men.2
Women tend to stay calmer than men in down markets. This protects them from locking in losses when the market takes a momentary tumble. 2
Although men are more confident investors, they tend to be overconfident. By trading more often, and without enough research, men reduce their net returns. 2