Women and Financial Confidence

caucasian womanWomen and Financial Confidence

A recent survey reveals that more than half of women (53%) are the primary breadwinners in their households, yet only 20% consider themselves “very well prepared” with their financial decision making.1  In contrast, 45% of male breadwinners consider themselves “very well prepared” with their financial decision making.

Of course, this doesn’t mean that women are less prepared to make sound financial decisions, only that they feel less confident about it.

The study also found that 70% of women see themselves as “savers” rather than “investors,” and most are only interested in guaranteed/FDIC-insured products.  This cautious approach can be useful in avoiding unnecessary investment risk, but unfortunately it increases the risk that women will not invest aggressively enough to stay ahead of inflation.

All investing involves some level of risk.  Wise investors understand the nature of investment risk, and use a long-term strategy, such as asset allocation and diversification, to manage volatility.  How do you get to be a wise investor?  Here are some ways to increase your financial confidence:

  • Seek education about the investment vehicles that can help you reach your goals. Check with women’s groups, community colleges, and adult education centers for information on investment or personal finance seminars taking place.
  • Work with an investment professional. An advisor can be an excellent resource in your investment education.  Two-thirds of women do not currently work with an advisor. 1 The biggest obstacles are perceived to be cost and lack of funds.
  • Check with your employer to learn about the retirement benefits that are available, and actively participate in any plans offered.

Women face unique challenges in our financial lives.  We live longer, and are more likely than men to compromise our retirement savings by taking time away from paid work to care for family members.  However, we also have strengths that can serve us well in becoming educated, confident investors.

To access the 2012-2013 Prudential Research Study: “Financial Experience & Behaviors Among Women,” click here.

1Source: Prudential, “Financial Experience & Behaviors Among Women,” August 2012.

If you need some help understanding the options in your particular situation, please don’t hesitate to call us at 408-551-6100 or toll free 800-927-8314 and ask to speak with one of our financial advisors or complete the form below to send us an email.

Best Regards,

Retirement Capital Strategies
A Registered Investment Advisor
1190 Saratoga Ave, Ste. 140
San Jose, CA 95129
Tel (408) 551-6100

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