Women Can Catch Up On Their Investments

Women Need Investment Help

Many women are behind when it comes to their investments; but they do not need to be.

Women are fully capable of learning how to become good investors, many are just behind and need to catch up.   Women need to understand how to invest just in case they chose to remain single, become a widow or ever end up divorced.   Women should also become familiar with investing so they can communicate more fully with their spouses and significant others.

Financial experts say women are behind in their investment knowledge because of their fear of investing factors, their lack of education and their lack of confidence.

Investment Risk|One Investment Factor

Women have a different attitude about investment risk than men.

  • Many women are timid about investing so they are more likely to have a lower risk tolerance.
  • Many women do not like risk; they want safe investments.
  • Safe investments result in lower investment returns.   Safe investments can return a few percentage points less than riskier investments.

By leaning towards less risky investments with lower investment returns than men, women never catch up.

Investment Education|Men vs Women

Women investorsWomen do not get the investment education that men do.   Due to lack of interest or the right advice, women are not getting the investment education they need.

  • This lack of education results in women not investing enough.
  • Women are not encouraged to invest, so they do not invest enough.
  • Women are not taught the difference between saving and investing.
  • Women are not taught about risk and reward, the less risk, the less reward in the way of returns.
  • Women are not taught about asset allocation, portfolio diversification or rebalancing.

Women should join investment clubs.   In these clubs women can explore, discuss and learn about investments together.  They can make mistakes together and not be embarrassed or ashamed about them.

Lack of Confidence

Women lack investment confidence.  Women do not want to make investment mistakes.

  • Since women are less confident about investing than men they trade less than men.
  • In a market downturn, instead of buying more because stocks and mutual funds are “on sale” in a down cycle, they tend to stay put and do nothing.

This lack of investment confidence again puts the growth of their investment portfolios behind men.