Sixty-one percent of women in a survey released Tuesday by Charles Schwab say that they are comfortable taking risk in their investments. And they are prepared to play the long game to realize potential returns.
“As barriers to entry have come down and access to financial information and resources has increased, retail investor participation and engagement has skyrocketed — and women are a huge part of that trend,” Jeannie Bidner, head of Schwab’s Branch Network, said in a statement. “Women are laser focused on reaching their long-term investing goals, and they are digging into the process with enthusiasm.”
Logica Research conducted an online survey in January among a national sample of 1,200 female investors in the United States ages 21 to 75, with at least $5,000 in investable assets and who are primary or joint financial decisionmakers in their households.
Eighty percent of female respondents said that they are focused on reaching long-term financial goals. To do so, half said patience is their biggest investing strength, followed by 45% who pointed to their discipline.
Other women said that investing regularly over time, careful planning and willingness to explore new products and strategies were their greatest strengths.
The Schwab survey showed that women have taken several key lessons from their investing experience:
- Stay invested through market volatility — 58%
- Acknowledge one’s risk tolerance — 57%
- Diversify investments — 54%
Feeling Empowered
Nine in 10 female investors said that managing their investments gives them a feeling of empowerment, and 83% said that they simply enjoy investing. Some two-thirds consider themselves investors, and a quarter think of themselves as traders. Most are very or somewhat confident about their investing strategies.
The survey found that women are highly engaged in the investing process, with 42% preferring a combination of doing their own research and receiving guidance from financial professionals.
Sixty-one percent said that they turn to professionals for financial information, 41% search the internet to find resources, 39% ask their family, 35% rely on investment or brokerage firm online resources and 28% take to social media. Three-quarters of women said it is important to be able to seek financial information, research or advice anonymously.
“Women are confident and comfortable in the driver’s seat when it comes to their investments and broader finances, but that doesn’t necessarily mean they are going it alone,” Bidner said.
A fifth of female investors said that they frequently discuss financial information with others, and nearly half said that they discuss finances occasionally. They mainly engage family and friends in these conversations, with a majority looking for new information or advice.
These conversations can also boost their confidence around financial decisions and can help others manage their finances or see them through financial challenges.
Overcoming Challenges
Although female investors in the survey feel empowered and enthusiastic about investing overall, 85% said that they wish they had started investing sooner, and 65% said that they delayed saving and building wealth because they did not have enough extra earnings to set aside.
Half said they started investing before they were 30, 29% started in their 30s and 13% did so only in their 40s. A majority said the two biggest hurdles to getting started were lack of financial knowledge/education and limited funds.
They also said that ongoing matters have affected their ability to invest, such as lower pay, career pauses to care for children or others and fewer job opportunities.
Despite the challenges they face with their finances, 90% of female respondents said that they feel they are on track to meet their financial goals. The reasons: They believe that investing has become more accessible, that there are more investment options and that financial education is more broadly available.
At whatever age women in the survey started investing, the top reasons they did so were to grow their money and save for retirement. A quarter said that they started investing simply to learn how.
About 40% of women worked with a financial professional when they started investing, and the same number received advice, encouragement or support from family or friends. A third turned to online resources or tools.
Today, the survey showed, 84% of women are invested in individual stocks. They also own or have owned these products:
- Mutual funds — 58%
- Bonds — 53%
- Real estate investments — 50%
- Cryptocurrencies — 32%
- Exchange-traded funds — 29%
- Options and futures — 20%
- Alternative investments — 18%
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