Women investors are on the rise, which is a stat we like to see, considering females represent nearly 51% of the U.S. population, according to the 2020 U.S. Census. No matter the reason for a woman to get into investing, no two women are the same when it comes to planning their future and managing their investments. But a study by Wells Fargo found a few common strengths related to the investment success of the female investors they surveyed: a willingness to learn, discipline, and a selective approach to risk-taking.

As financial advisors, how can we work with these strengths to help women build a successful investment portfolio that achieves their goals?

Feed women’s hunger for financial knowledge

I think what’s most exciting is knowing that female investors are hungry to learn about investing. At Hiley Hunt Wealth Management, educating our clients and helping them have an active role in their investments is what fuels us. We want our clients to understand to the best of their ability how the market works and how they can create an investment portfolio that works for them. We grow and evolve with our clients and continue to learn about the financial market so that we can appropriately advise our clients.

Enjoy women’s financial discipline

Developing a financial plan, sticking to it, and working with an advisor are among the factors we believe can lead to better investment results for women. According to a Fidelity Women & Investing Study released in 2021, women tend to outperform men by 40 basis points, or 0.4%. While this may not sound like much, it can result in tens of thousands of dollars in additional value over an investor’s life. 

This outstanding performance by women investors is likely due to women’s discipline in investing. They tend to take a buy-and-hold approach, which pays off in the long run. This is the appropriate mindset to have when investing in the stock market. While we know that the market cycles through peaks and valleys, investing in the long term will achieve the most significant ROI.

Understand women’s approach to investment risk-taking

Women tend to be more conservative with their investments than their male counterparts. Determining risk tolerance is a significant part of building an investment portfolio and allocating assets. We work with each of our clients to understand their goals and current financial situation and consider their comfort level with investment risks. 

Whatever the reason for women to get into investing is, we’re here for it. We’re excited to see the rise of female investors and watch them achieve their goals. Hiley Hunt Wealth Management is dedicated to partnering with women in transition. We specialize in working with female breadwinners and women going through a divorce or widowed. We understand the unique life circumstances that apply to these demographics and take an advisory approach to help women understand their finances and create a plan to reach their financial goals. Contact us today if you’re looking for financial guidance.