Why Women Make Excellent Long-Term Investors

Article Summary

• Research suggests that the investment portfolios of women outperform those of their male counterparts.
• Women often make good long-term investors because of several character traits, including a commitment to a long-term plan.
• Some women find that working with a wealth advisor makes them feel more confident about achieving their financial goals.
  

Why Women Make Excellent Long-Term Investors

It might come as a surprise to some, but it turns out that women can make great investors. Research has found there are several reasons why this seems to be the case, beginning with intention.

The Warwick Business School found that women’s investment portfolios outperformed that of their male counterparts by 1.8% annually. Researchers attribute these gains to a woman’s consistency when it comes to investing. In general, women embrace a more long-term perspective, while men may have a greater tendency to engage with speculative opportunities.

While the research highlights interesting data points, it also underscores patterns among women, who often make decisions based on predetermined goals. That type of focus, according to research, may allow women to maintain a strategy of sustained growth over time, rather than chasing short-term opportunities that may or may not pan out.

Success Of Women Investors

Other factors can also influence the success of women investors. Studies have shown that women are often less reactive when the market experiences a downturn. Some studies suggest that women may be less likely to react quickly during periods of market volatility. Research indicates some women may be more likely to stay focused on long-term plans during market downturns. 

That focus supports a study released by RBC Wealth Management, which found that women are more likely to create a financial plan and then commit to it. Many women feel more confident when they have a long-term financial plan built around their priorities. Some women find they appreciate working with a financial expert to periodically re-assess those goals over time as life experiences change.

Thoughtful Financial Planning

It turns out that the confidence factor women have to navigate when it comes to finances may actually be a strength in the long run. Research suggests that women embrace lower levels of overconfidence, which may influence how some women approach financial decisions.  

That same character trait may contribute to a more deliberate approach to financial planning and more intentional decision-making when evaluating different financial strategies. 

Part of that thoughtful approach to financial planning does often include consulting with a financial advisor. Many women prefer to work with financial experts who understand the life experiences females navigate, which means many seek out a women-focused fiduciary advisor. Financial empowerment for women is often found to grow from being heard and feeling understood. Research suggests that feeling understood can improve someone’s confidence and engagement during the planning process. 

Many women have found that they value working with a female-vetted financial expert who can help explain planning concepts and available strategies. At Svvy®, we understand the desire to work with a female-vetted financial expert, which is why we offer a financial advisor match that aligns with the specific needs of each client.

If consulting with a financial advisor who specializes in working with women sounds like a path you would like to explore, Svvy®  will match you with an expert based on your state preferences. The free Svvy® match quiz, available on our website, is the first step in the process. 

If you would like to be connected with a female-vetted expert to help you plan for long-term goals, get matched with a Svvy®  expert today. 

Disclosure: This content is provided for general educational purposes only and does not constitute individualized investment, legal, or tax advice. Svvy®  acts solely as a solicitor and connects and matches individuals with independent third-party financial professionals through a quiz-based matching process on the Svvy®  Network. Matching is based on information provided through Svvy’s platform and does not constitute any advice. Any advice, recommendations, and services are provided only by the independent professional you choose to engage.