How Women Fare in the Investment World – Wells Fargo Financial Advisors
We all know that Wall Street is composed primarily of men. Many erroneously think that men know more and succeed more in investment because of this.
But it is a myth.
Wells Fargo Financial Advisors Report
According to a Wells Fargo Financial Advisors through their Investment Institute’s report conducted back in December 2016, women admit to having less experience than men when it comes to investing. This way of thinking makes women afraid of downturns and expect lower investment returns. In short, they are afraid of taking risks when it comes to investing.
However, according to the World Health Organization, women live longer than men. This has an effect on their investments, that their assets will last longer than men’s. This also means that women can benefit from stocks and other growth assets, as well as engage in long-term investing more than men.
Managing the finances of the household are also, usually, a woman’s responsibility. It may sound sexist, but the thing is, women have more experience with money even if the man is the breadwinner of the household. Women, especially mothers, have more experience with finance.
The Wells Fargo Financial Advisors report also showed that female-lead investments earned higher returns and the highest by single women. The truth, as it turns out, is that women can effectively manage their own assets and can positively contribute to a strong investment partnership.
Another study, one by Fidelity Investments, concluded that women are superior than men as investors. According to Fidelity, women save more than men by 0.4% and that of their investments earn 0.4% annually.
What does this mean?
According to the Wells Fargo Financial Advisors report, although women themselves think they aren’t good investors, the opposite is true.
With longer average lifespans, women’s saving and investing efforts are far more successful than most men. This sheds light on the misconception the American populace has about men being better investors.
How this came to be can be attributed to the fact that men trade more than women. And trading means more fees deducted in their investment balance and portfolio. Add in the fact that women save more than men in the first place at the workplace and individual vehicles.
Women risk less and tend to invest more on target-date funds that diversifies their portfolio. Long-term, saving more, trading less on the market – all these add up and prove the conclusion of Wells Fargo Financial Advisors report that women investors are more likely to achieve financial success as investors.
Strong Women Investors
Women already make up more than half of the US populace. They are equipped with experience in managing finances for themselves and an entire household.
Although they may not be as confident as men when it comes to investing, it does not mean they are less successful. With long term investing in their mind and more statistical tendency to stick to their financial plans, women are strong investors.
The Wells Fargo report findings highlighted the strengths of women investors. Women should take advantage of their strengths and use them to reach their financial goals.
Wells Fargo Financial Advisors are ready to impart more insight and guide women investors towards a brighter future.