Women are generally not afraid to ask questions. They tend to seek out information before investing. “It’s a process of drilling down and understanding what we’re investing in and why before we make a move,” notes McGregor. Women also tend to be more open to advice, whether it’s from a professional or through a financial mentor, she adds.
Women tend to invest with goals in mind. They’re investing for their family’s future security, a child’s or grandchild’s education, a dream vacation or a first or second home, rather than trying to outperform a market benchmark. “Having more immediate goals in mind can help investors stay focused and stick to their plan,” Sabbia says.
And women have one more advantage: They can make their own longevity an asset. “Because women live longer than men, they have more time to invest — and that means more time to let their investments grow. Make longevity your best asset,” McGregor urges. Sabbia agrees, noting that a 2018 Merrill/Age Wave study, Women & Financial Wellness: Beyond the Bottom Line, found that 41% of women wish they had invested more of their money.
“Don’t let yourself end up regretting you hadn’t invested more,” Sabbia says. Women often play catch up as a result of the wage gap and caregiving responsibilities, which can limit their savings and investment opportunities. “That’s why it’s so important for women to invest early and often, and to stay focused on making the money they earn work hard for them.”