In their July 2017 Wells Fargo put together an article, The Complicated Relationship Between Women and Money, in which they noted that in their survey of investors, more women than men, indicated a lack of confidence in their ability to invest. Statistics indicate that nine of out ten women will eventually take charge of their family’s wealth, making it important for women to have the skills and confidence to invest intelligently. This goal may be more difficult to achieve forwomen than for men because of the social circumstances of gender – women earn less than men for the same work, women are more likely to take time off from work to care for others, and women have little free time to become financially literate.
A perceived lack of experience will make women less likely to invest or more likely to invest conservatively than men. However, Wells Fargo found that this lack of confidence is without evidence. The study found that single women earned the highest returns while male-led and single men accounts had the lowest returns. Women investors are more likely to remain patient, trading less frequently than men. Frequent trading can exact costs, lowering returns. Women also tend to be more willing to seek and follow advice from professionals than men.
The Wells Fargo reports offers tips for women investors to take control of their finances. Because women live longer than men on average, they have a longer time horizon. Thus, these long-term investors should incorporate growth assets, such as stocks, into their portfolios.
Wells Fargo also suggests learning what type of investor you are to find the investment style and professional that will work well with you. Moreover, educating yourself, researching options, and setting goals are important. Instead of putting too much of your portfolio in cash, the report suggests strategic asset allocation, which involves spreading assets among stocks, bonds, real assets, and alternative investments. It is also important not to overly place value on the time or state of the industry, rather than smart investment behavior. For example, it issmart investment behavior to stick to a plan rather than take advantage of an opportunity presented by changes in the market.
Please contact Jorge Antonio Seminario, Vice President/ Philanthropic Specialist for Wells Fargo at [email protected] for additional information. Please also see the following links for additional information and statistics on women in philanthropy:
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