Women Are Better Investors!
“Women are better investors.” That was the headline during the evening news last week; the same week that the market reversed direction more than some of the most famous roller coasters in the world. I thought this needed a little more investigation. Over the past few years there have been a lot of studies by academia and investment firms in investment behavior, attitudes, and outcomes between men and women. The findings demonstrate that as a result of their different approach to investing, and their temperaments, female investors produce results that are more consistent and persistent.
Women investors tend to:
- Spend more time researching investments; as a result they avoid “hot tips” and whims.
- Trade less than men do. Men trade 45% more than women and are more confident in their decisions.
- Shun risk more than male investors do.
- Be less optimistic, therefore more realistic.
- Be more immune to peer pressure and make decisions the same way regardless who is watching.
- Learn from their mistakes
- Ask for direction and professional help.
So, if these are the facts why do so many women choose not to take an active part in their financial future? This is your wake-up call! Women need to get off the sidelines and take control. Many of us were raised not to talk about money. Women would rather share much more intimate aspects of their life than discuss money. It is never too late to get involved or get started.
Here is what you can do to get started:
- Gather any statements you have and see where you are invested. Ask questions; make sure you are comfortable with the investments.
- Calculate your net worth. (go to wimforwomen.com under resources for a worksheet)
- Start researching where you would invest, seek out a financial advisor for a second opinion.
- If you are not investing, in most cases it is time to get started.
Women tend to live longer than their male counterparts and make less during their lifetime but, because of their longevity will need to have more saved for the future. The evidence shows women are better investors, get involved in your future.
Suzy Egan has more than 15 years in the investment business with 10 years as a past member of a large registered investment portfolio management team and 5 years in her current role with Woloshin Investment Management, LLC. The establishment of WIM for Women, a financial service dedicated to the need of women, is the cornerstone of her practice. You can email Suzy at firstname.lastname@example.org.
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Woloshin Investment Management, LLC is not affiliated with J.P. Turner & Company, LLC