A rather hard-hitting statement, and one that got me intrigued. The above is from an article I read suggesting that such thinking is somehow ‘hard-wired’ into women.

 

Behavioural finance statistics found that women perform well when they do invest. Work carried out at Berkeley’s Haas School of Business found that men traded 45% more than women. Women, in contrast, tend to be ‘buy and hold’ investors.

Women have long-term goals and are happy to stick to these goals, whether it’s saving for a child’s education or, putting something away for retirement. This wiring is just right for investing in the stock market, because those who remain invested can benefit from the historical long-term uptrend in stock markets. But barriers exist that stop women from investing. Some of the obstacles quoted as being those that stop many women from thinking about investing include a lack of time, confidence, access to the right information, industry jargon and, not knowing where to start.

 

Women tend to live longer than men, often earn less and, tend to take more career breaks for children etc than men. All these various factors tend to create a ‘preservation’ approach to finance. Until these hindrances are removed, or at the very least addressed, we cannot unlock women’s financial power.

 

Having established that women are more diligent at investing for the long-term and being aware of all these other factors, what can anyone who is minded to, do to help themselves? The answer is to gain power through knowledge. It would appear from the research that most women have an idea of what they what to achieve, the problem appears to be understanding the best way(s) of achieving these goals. The answer to this one is to take advice, and take that advice from an IFA, someone whom can listen to the desired goals, and then discuss and plan around them. It sounds very simple and probably it is, but sometimes taking that first step on a journey can be the most difficult.

 

This information is provided strictly for general consideration only. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.  Investments may fall as well as rise and you may not get back the full amount

 

 

Neil Dainton

Financial Planner Dip PFS