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 don’t 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. So, most women tend to have a similar relationship with money.
Since men just view money differently, their risker mind-set interferes with the core money relationship women have. But, what bothered me the most about being a stockbroker, is that women were treated differently and even inferior by other men. It was not uncommon to see a male broker talk to only the man when a couple came in for advice. I understand that it is a male dominated field, but there is no excuse for this behavior.
In retirement, low risk investing is not only practical, its essential because you don’t have time to start over. A study(1) found that female hedge fund managers out-preformed men by 6% over a nine-month period in 2012. A hedge fund, originally named to hedge against market losses, has evolved. Now it is a managed fund(not indexed) that is less regulated in terms of using leverage. Using leverage dramatically increases investor risk.
This 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. Level heads will prevail.
So, women need a female financial advisor because:
1. Your relationship or how you view 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.
More at: www.creativeretirementforwomen.com
(1) Sightings, T. (1-7-14) “4 ways women make better investors” money.msn.com. Retrieved on 2-28-14 from: money.msn.com/how-to-invest/4-ways-women-make-better-investor