This protects them from locking in losses when the market takes a momentary tumble. “Women are apt to stay calmer than men in down markets,” says Greco. This may help women with another investing best practice: holding investments for the long term. And because women are more likely to have good age-based asset allocations, they achieve proper diversification to help protect their money, regardless of market condition, according to Fidelity research. “This prevents women from chasing ‘hot’ tips and trading on whims, behavior that tends to weaken men’s portfolios,” says Marissa Greco, a financial planner at Greco-Nader Wealth Navigation. Both of these findings make for better investing outcomes. Rather, they’re simply more likely to take on appropriate levels of risk with their investments than men. And while they do take on less risk than men when it comes to investing, that doesn’t mean they’re risk averse. Studies show that women spend more time researching their investment choices. Understanding how women invest and why they excel can help everyone, regardless of gender, do a better job with their investments. In fact, women investors consistently outperform their male counterparts, which could leave them with hundreds of thousands of dollars more at retirement, according to Fidelity. The belief that women are risk-averse spendthrifts permeates everything from media that discourages women from excessive shopping to financial advisors who assume their female clients want less control over their investments.īut research doesn’t bear these stereotypes out. Investing advice often starts with the assumption that women need to be coaxed into understanding finance.
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