August 2019

Differences between the genders—behavioral and otherwise—are the rightful subject of a veritable tidal wave of research and writing, from academia to pop culture. Investing is not immune—an entire body of research (some of it below) has been dedicated to identifying the different investing habits and motivations of women and men. No matter your gender or circumstance—whether you’re part of a couple or rely on a single income—we work with clients to build financial plans that account for and leverage these and many other behavioral differences.

A study by the Warwick Business School concluded that women outperformed men at investing by 1.8%. What accounts for that out performance? Wiring. Women tend to favor a long-term low-risk approach to investing and do not exhibit over-confident behaviors—two keys consistent with our investment philosophy for ALL clients. This article by Blair duQuesnay in The New York Times explores interesting research regarding the investing difference between women and men. Read the full article.  

As women’s economic influence rises to new levels, how will they manage this wealth? The next generation of investors is younger and more diverse, and women will take a more prominent role in building and growing family and personal wealth. Studies show that women think about money and wealth differently than men, and differently from the precedents set in the financial services industry. The i nfographic “Women and Investing” visually captures the investment power women are bringing to the market, and how they are shaping the future of products and services offered in the financial services industry, and impacting our economy overall. View the infographic.

Conversations around budgeting and smart spending versus learning how to build credit and invest, leave girls with the knowledge of how to spend but not accumulate wealth. U.S. News & World Report has an excellent article, “How to Raise Financially Independent Daughters” that guides parents on the ways to teach your daughter about money that provides them the foundation necessary to become financially confident as an adult. Read the article.

Charitable giving, in particular, informs the way women shape their financial plans. But the way women invest differs by generation. When it comes to giving, Millennials are embracing new tools, but Baby Boomers are finding more satisfaction in giving overall. Check out this infographic depicting how two generations give differently. View the infographic.