The findings are in! The conclusion from a recent Wells Fargo Investment Institute report? Women make great investors. WBIR-TV recently interviewed Paul Fain, president of Asset Planning Corporation to talk about what makes women investors great investors.
PAUL, WHAT MAKES WOMEN GREAT INVESTORS?
Women investors simply tend to follow recommended investment principles! As a result, they often perform better than men. It’s a good thing too, according to Time magazine, women still live five to 10 years longer than men, and among people over 100 years old, 85% are women. Women are poised to control 67% of all financial assets by 2020.
LET’S DISCUSS SOME OF THE SPECIFIC TRAITS OF GREAT INVESTING THAT WOMEN EXHIBIT…
Women show greater willingness to:
- Show patience,
- Forgo excessive trading,
- Seek education and
- Adhere to an investment plan.
THE WELLS FARGO REPORT ALSO FOUND THAT WOMEN ARE GENERALLY MORE CONSERVATIVE THAN MEN, RIGHT?
More women than men are fearful of a market downturn, as a result:
- Men investors tended to invest 100% of their accounts in stocks at least 2x as often as women.
- Men investors are 6x more likely to make massive allocation shifts, such as moving stocks to bonds then back to stocks.
- Risk control, however, led to higher average returns for the women investors.
BUT ALL SAID, STUDIES HAVE FOUND THAT MANY WOMEN INVESTORS REPORT LACK OF CONFIDENCE….
- Women are often their own worst critics.
- They don’t give themselves enough credit for their own knowledge and abilities.
- However, this leads women to be 2x more likely to seek education and advice, the report finds.
This segment originally aired on WBIR on 8/6/17.
