Women are less likely to engage in investing than men due to the risks associated with it.
Engaging with your money, outlining your financial goals, and working with a financial professional are a few steps you can take to feel empowered in making investing decisions.
Studies over the past two decades show that, generally, women make less risky investments, see higher returns and hold investments longer.
One reason women are less likely to invest than men may be that they see the stock market as too risky. According to U.S. Bank’s 2020 Women and Wealth Insights Study, a majority (72%) of women say financial security is a main motivator for building wealth, compared with 59% of men.3
Statistics indicate that when it comes to financial planning for women, a majority hold their financial future in high regard, as women tend to be more concerned with their long-term savings. When discussing women and investing, it isn’t surprising that 43% of women fear they won’t have enough saved for retirement, versus 33% of men.3 When looking toward the future, it’s important for women to take financial planning to the next level by bringing investment options to the forefront.
However, investing for women can be a vehicle to financial security rather than a risk. Investing has the potential to help you make progress toward financial goals. Whether building a child’s college fund, saving for retirement or growing your overall wealth, there are many reasons why women should invest. Great for both experts and novice women investors, there are a handful of investing basics that can help you work toward a diversified portfolio.
Here are five steps you can take to help you feel more engaged in your finances and empowered in your investing decisions.
Learn about your investing choices.
Workplace retirement plans allow you to invest with ease while working toward financial security.
A comprehensive financial plan can help you approach your retirement with confidence.