How unique traits can lead to financial success
Over the last decade, there has been a clear shift in household money management—women are taking the reins more than their male counterparts, due, in part, to changes in socioeconomic norms and the pressing need to have a tighter grasp on financial goals.
Specifically, women investors are making up a larger share of the market because unexpected lifestyle changes have pushed the need to the forefront—a spouse has passed away, a divorce took place or an elderly parent needs financial assistance. These circumstances can seem overwhelming when they arise abruptly, but understanding how unique female traits fit into the realm of investing and financial planning beforehand can make the shift in financial control much less daunting.
Patience is Key
For women investors who are new to the discussion of investment goals or financial management, the sheer volume of information perceived to be necessary to make sound decisions can be paralyzing. However, the higher degree of patience the majority of women possess plays an important role in successful financial planning. Instead of rushing through information provided by a financial planner or gathered from various outside sources, taking time to understand what is pertinent to your specific situation and your feelings regarding investment goals lays the groundwork for long-term financial wellness.
For women investors who are old pros, having patience with market movement, long-range financial goals and the investments that will lead to their successful completion can mean the difference between reaching objectives and falling short.
Admitting to Mistakes
Women have an easier time admitting to their mistakes or misunderstanding than their male counterparts. This can be incredibly beneficial as it relates to setting and achieving financial goals. Not fully understanding how much of an impact rebalancing a portfolio can have on long-term returns or not knowing when investment changes should be made are only detrimental to investment goals when they are not acknowledged or not promptly addressed. The female trait of being able to admit to mistakes made is crucial to success in planning for the long-term.
Less Inclined to Take on Risk
It is widely known that men are more likely to take on risk—whether that is in business or activities outside the workplace—more so than their female counterparts. A penchant for risk aversion, however, can work to the benefit of women investors. Instead of getting caught up in potential return on investments or buying into investment vehicles that may bear higher risk than more conventional outlets, women investors have the keen ability to take a more conservative position, and therefore, may be able to ride out market turmoil with a greater level of ease than men.
If you reside in Long Island and your life circumstances have forced you into the role of household financial manager, or you are simply more interested in working toward your financial and investment goals, now may be the perfect time to speak with a financial professional local to Massapequa to help you get started.
— By Beth Collins, Massapequa resident and Vice President Gateway Investments, LLC. For more information, contact Beth at bcollins@gatewayinv.com.
