Tuesday, 30 March 2021

Women control more than half of the wealth in the United States, and 47 percent of women earn the same as or more than their spouse or partner. 

Women's earning potential continues to increase, as they have earned the majority of college degrees and career-preparation certificates for a number of years, according to the National Center for Education Statistics.

Despite women's growing earning power and financial assets, only about half (52 percent) of women feel confident managing investments, according to one study. However, 41 percent say they wish they had invested more of their money.

“Women often hesitate to raise their hands for promotions and raises in the workplace, and they often hesitate in the same way when it comes to managing finances," says Callie Elrod, CRC®, CWS® , financial consultant and senior vice president with BBVA Securities Inc*. “They may feel like they need to know so much about money or have so much money before they are willing to get help in investing."

As women earn more money and control more wealth as heirs or household leaders, it's increasingly important for them to build confidence as investors and money managers.

Why work to build investing confidence?

“Even though there are many positives, such as more women graduating, earning and controlling finances, they still typically earn less than men and are more likely to step out of the workforce to take care of children or aging parents, and they live longer than men," Elrod says. “Because they earn less than men and spend less time working, they really have a lot of ground to make up."

Investing can be a powerful strategy for women to make up for lost time and earnings, helping them to build financial equality and independence. It can also help women create more wealth for their families—and 77 percent of women say they view money in terms of what it can do for their families.

Also, although women are typically less confident than men about investing, they tend to be naturally more effective investors than men. Fidelity research shows that women enjoy higher rates of return than men over time, and typically save more than men. Various researchers have attributed women's success to their patience, lower risk tolerance and tendency to research their investments more than men. By freeing themselves of anxieties surrounding investing, women maybe able to harness their natural tendencies toward successful investing.

How to boost investing success

The most important steps to investing success are setting goals and creating a plan to reach them, Elrod says. But doing that on your own “can be daunting," she explains.

Most retirement plan providers offer educational information, and there is a wealth of investing information online. While these can be good places to start, there's no substitute for partnering with a financial consultant who can help you formulate that plan and keep you on track to meeting those goals.

“With legal issues, we hire a lawyer, and with tax issues, we hire an accountant," Elrod says. “Why not work with a professional advisor for financial planning?" A financial consultant can talk through your goals with you and help you create a plan to reach them.

“A financial plan is like a GPS; it tells you the best, most efficient route to get to your destination," Elrod says. “A planner can break it down into bite-sized pieces and guide you turn-by-turn through your plan to accomplish what you want to accomplish."

For best results, Elrod recommends spending as much time planning for your financial life as you spend planning for vacations or holidays. “Having a good financial professional on your team will provide you with new opportunities for learning and give you more confidence for reaching your goals."


*Securities Products offered through BBVA Securities Inc., member FINRA and SIPC and an affiliate of BBVA USA.

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