Do Women Need a Female Financial Advisor? Would it surprise you if I told you that women are better money managers than men? It starts with a different relationship with money. Women do not view money as the ultimate goal, tend not to flaunt it with objects that are symbolic of success, and dont involve it in their identity to the extent as men. Becoming a millionaire is usually not the final accomplishment and stopping point for women. Instead, money is a tool that enables women to enjoy the benefits and freedoms of life. As a stockbroker, it became clear to me that women are more careful and thoughtful about risking their money. They are not trying to hit a home run in the market, but look for stability and safety in an investment. How safe is this, was the most common question and should be asked at every turn. In retirement, low risk investing is essential because you dont have time to start over. Just the fact that the relationship with money is similar indicates a good match, but there is more. A study(1) found that female hedge fund managers out-preformed men by 6% over a nine-month period in 2012. The study points out four primary differences. 1. Women are less competitive and less preoccupied with beating an index. 2. Women take fewer risks in the market as with other areas of life. 3. Women do more homework and stay in investments longer. 4. Women realize they are not in control. Realizing you are not in control of all factors gives women the perspective to not panic. So, women need a female financial advisor because: 1. Your relationship with money is similar on an emotional level. 2. Safety and sustainability of your money is the priority, especially in retirement. 3. Female advisors tend to establish a more personal relationship with clients. 4. Women, with the same experience as men, are better investors on average. 5. There is a deeper sense of trust with another woman. (1) Sightings, T. (1-7-14) 4 ways women make better investors money.msn. Retrieved on 2-28-14 from: money.msn/how-to-invest/4-ways-women-make-better-investor
Posted on: Thu, 01 Jan 2015 20:06:06 +0000
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