As an investment adviser, something I am passionate about is ensuring women at all ages and stages of life have good knowledge about investing and the benefits that it can bring.
The reality is that even though we as women have been fighting for pay equality, 2022 research shows that women earn on average 9% less than men*.
This coupled with the fact that women may not be contributing to KiwiSaver whilst taking time out of the workforce to care for children and that ladies live longer than men* means that women have some work to do to catch up to our male counterparts.
In the case of a relationship break-up AUT 2018 research showed that women are 73% worse off when faced with the prospect of supporting themselves and their children.
It’s not just earning power that marks the difference between the genders, but it is the attitude to investing. Men are more likely to take more risk by investing in the share market thereby increasing their returns whereas women are more cautious and likely to keep the money in the bank. In this interest rate environment, with inflation at soaring highs, unfortunately it is eroding the value of our money in front of our eyes.
Women are considered traditionally more cautious and risk averse than men. However, this is not an impediment to successful investing and in fact, several studies*** looking at investing behaviours suggest that women make better investors.
Women are more likely to seek advice from an investment adviser. In working with my clients, I help them figure out their risk profile and define the financial goals that they want to achieve. Women who have their money invested are more likely to set definitive goals and stick to them rather than changing them frequently or being tempted by the latest hot investment trend.
Fidelity Investments conducted a study in 2021 that analyzed the behaviour of 5.2 million retail investors and found that women outperformed men by about 0.4% per year which, when you extend that out over time, does create a marked difference in performance.
“Many women who may have left the financial decisions to their husbands or partners can be caught out in the case of a separation. I can’t stress enough the importance of understanding your finances and the value of investing as early as possible in life in order to be able to support yourself and potentially your children if you find yourself in a new chapter of your life.
Going through a separation is an emotional time and the importance of having good advisers around you to navigate the journey ahead is essential. In my role as an investment adviser. I see women who are initially nervous about making the step into investing, but I assist them to start the investment journey by demystifying the process and working with them to achieve their goals.
There is nothing more satisfying for me than to see those funds invested grow to help women plan well for their retirement.”
If you would like to start the conversation around investing, please reach out to me Tanya Osborne directly on 09 9775501 or email@example.com
At Craigs we have been running a Women’s Wealth programme since 2007 with the objective to empower women to have the confidence and knowledge to invest. We host a range of events around the country for clients and potential clients and we also share our knowledge and insights via our website craigsip.com/insights
Sources: *Stats New Zealand 2022 **Employment New Zealand 2022 *** Fidelity Investments – 2021 Women and Investing Study last month, Wells Fargo Advisors Report 2016, Barber and Odeon
Disclaimer: This article is general in nature and is not financial advice. It does not take into account your particular financial situation, objectives, goals or risk tolerance. Investments are subject to risk and are not guaranteed. Past returns are no guarantee of future performance and returns can go down as well as up. Before making any investment decision Craigs Investment Partners Limited recommends you contact an investment adviser. The Craigs Investment Partners Limited Financial Advice Provider Disclosure Statement can be viewed at craigsip.com/tcs. Visit craigsip.com. Tanya Osborne is an investment adviser with Craigs Investment Partners Limited. Her disclosure statement can be found at craigsip.com
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