“Girls Just Wanna Have Funds,” a Wall Street Journal article, discusses how women have made strides in many areas of society but remain hesitant about investing. However, the article points out ways women can use their weaknesses and strengths to their advantage when it comes to financial planning and investing.
Lower confidence: What some women lack in confidence, they make up for in caution: “When they do invest, their humility and caution make them far less likely than men to trade excessively or to take outsize risks, which can benefit them in the long run.
Being unsure may keep some women from risky investment moves that may ultimately cause them to lose more than they gain. Rather than going after ‘the next big thing’ cautious investors –be they women or men—look for what will bring them gains over time.
Desire to collaborate: Since “women are more likely to get their investment information for people…than from newspapers books and websites” make sure you are getting what you need. The WSJ recommends you “demand more from your financial advisor.” Don’t be satisfied to have someone just tell you where you put your money ask for the reasoning behind these suggestions and try to learn about how the markets operate.
And you can encourage friends and family members to learn more about investing with you. Women’s investment clubs, which were very popular years ago, seem to be on the decline.
Being in the moment: If you are a busy woman with a lot to do you may not stop to even consider retirement since it is a ways off and you have so much to get done now. One finance expert whose firm focuses on investment and finance advice for women noted that women aren’t even allowing themselves to dream but that if they were able to envision the kind of retirement they’d like, it might be easier to commit to taking steps to make that dream a reality.