Even More Proof That Women Are Better Investors Than Men
3:00 pm, March 27th | by Amy Tennery
This is according to a new study released by Pershing of BNY Mellon, which offers even further proof that women are excellent personal money managers in a number of regards. The report looked at consumer investing and, in particular, gauged how men and women approach their financial advisors differently. And the results are rather staggering.
Getting past the creepiness of the report’s title, “Women Are Not A ‘Niche’ Market. They Are A Significant Business Opportunity,” (awkward.) the data show that women are more likely to push for quality service when working with an investing advisor — and they’re more likely to do their homework.
For starters, the study shows that women are less likely to be satisfied with “the performance of their investment professionals.” While 60 percent of men said their advisors prioritized “making me a smarter investor,” just 49 percent of women felt the same. Either women want more out of their money pro or [insert comedic collar-stretch here] investment advisors don’t work as hard to educate their female clients. I’m sure it’s the former, yes?
Another plus? Women are more likely to focus on an investment’s risk — and they expect their finance guides to do the same (more so then men). While 66 percent of men respondents felt their advisors “clearly articulate downside risks of investments,” just 57 percent of female respondents said the same. Again, either women are more likely to seek out information on potential investment risks or… yea, you get the idea.
This phenomenon bolsters well-worn wisdom saying that women (in the workplace and in their personal spending) are more risk averse when it comes to investments. And while no one can predict money disasters, it’s not a stretch to imagine a little extra care helps female investors in the long run. A report last month actually showed that women, on the whole, are less confident investors than their male counterparts — but their portfolios tend to perform better. Less confidence, more caution.
So, a recap: We’re less satisfied with our investment advisors’ performance and we’re more likely to nitpick over risks. What, exactly, makes us such delightful “business opportunities?” Money. The Pershing report also found that women have a lot of that stuff.
In fact, by its estimation, women control two-thirds of all spending in the U.S. every year, and “about 80 percent of women will be solely responsible for household financial decisions at some point in their lives.”
So let’s start investing… when we’re all feeling a little more up for it.