Women investors are taking a risk-savvy, patient approach to investing, and 90% feel they are on the right track to reach their financial goals, according to a new Charles Schwab survey of 1,200 American women investors who are primary or joint financial decisionmakers in their households.
The study showed that women investors are comfortable taking risk in their portfolios (61%) and play the long game when it comes to realizing potential returns. Most are focused on reaching long-term financial goals (80%) and to get there, 50% point to patience as their biggest investing strength, followed by discipline (45%).
According to Schwab’s survey, the three biggest investing lessons women investors say they have learned are staying invested through market volatility (58%), acknowledging their risk tolerance (57%), and diversifying their investments (54%).
“As barriers to entry have come down and access to financial information and resources has increased, retail investor participation and engagement has skyrocketed – and women are a huge part of that trend,” said Jeannie Bidner, head of Schwab’s Branch Network, overseeing the firm’s nearly 400 branch locations across 48 states.
“Women are laser focused on reaching their long-term investing goals – and they are digging into the process with enthusiasm. Today, more than ever before, women can invest how they want, and we are incredibly proud at Schwab to offer a vast range of low-cost products, advice, digital and human support, education and more to help investors meet their goals,” she said is a release on the survey results.
Empowered and engaged
Overwhelming majorities of women investors say that managing their investments gives them a feeling of empowerment (91%) and that they enjoy investing (83%). Nearly two-thirds (62%) think of themselves as investors and one quarter (26%) think of themselves as traders. Additionally, 89% of women investors are very or somewhat confident about their investing strategies.
Women are highly engaged in the investing process, largely preferring a combination of doing their own research and guidance from financial professionals (42%). More than half say they turn to professionals for financial information (61%), while 41% go to the internet to find resources, 39% turn to their family, 35% rely on investment or brokerage firm online resources, and 28% take to social media.
Three-quarters of women feel it is important to be able to seek financial information, research or advice anonymously (76%).
About one in five women investors (19%) frequently discuss financial information with others and almost half (46%) say they discuss finances on an occasional basis. The people they discuss financial information or advice with most often are family (79%) and friends (56%). The top reasons for these conversations are:
- to learn new financial information or advice (56%),
- to support others during financial challenges (41%),
- to feel more confident in their financial decisions (37%), and
- to help others manage their finances overall (37%).
“Women are confident and comfortable in the drivers’ seat when it comes to their investments and broader finances, but that doesn’t necessarily mean they are going it alone,” said Bidner. “They also value guidance from financial professionals and tap their own community to collaborate with others, including family and friends. For the women we surveyed, do it yourself doesn’t mean do it in isolation.”
Though women investors feel empowered and enthusiastic about investing overall, 85% say they wish they had started investing sooner, and 65% say they delayed saving and building wealth because they didn’t have enough extra earnings to set aside.
Thinking back to when they first got started investing, the top two hurdles cited by women investors are lack of financial knowledge/education (54%) and limited funds (53%). According to the survey, women investors say ongoing challenges like lower pay (31%), career pauses to care for children or others (20%), and fewer job opportunities (14%) have impacted their ability to invest.
Schwab’s online survey was conducted by Logica Research from Jan. 7 to Jan. 23 among a national sample of 1,200 women investors in the United States, aged 21 to 75, with at least $5,000 in investable assets and who are primary or joint financial decisionmakers in their households.
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