Women vs Men

"I see my role if needed as a financial mentor but one who can show warmth, practicality and empathy."
-Katherine Hann
June 1, 2017

Women vs Men

By Katherine Hann

Women vs Men

A controversial yet hot topic among social media these days seems to revolve around Women vs Men (how much women earn, how much they get promoted, are they paying more for consumer goods?).

This video highlights another key difference – one to do with investing. Although the video is made in the UK, the topic and outcomes are similar to Australia.
In fact, there have been many studies and articles in recent years that suggest in general:

1).Women hold more of their wealth in cash than men do

2).They report being less confident about taking financial risk

3).When women invest they do so for the long term (they don’t buy/sell or move money about as often)

Sometimes this can result in better long-term returns, sometimes it means depositing money in places that don’t keep up with inflation (in Australia this
is 2.1% at March 2017).

Overall, it seems that when women do start to invest, they can outperform men! Men have been shown
to trade 45% more than women, but on average produce lower returns from trading by 2.7%.(1)

As with many things in life, education seems to be the key to building confidence and making smart choices.

It is essential for everyone to understand their own investing behaviour:

Do you think being too aggressive in investing has made you lose out?

Do you feel you are missing out by not taking an active role?

For those of you (men or women) who do invest, are you glad you took an active interest in your finances?

 

(1) A study on Behavioural Investing by the National Australian Bank demonstrated some of these investing differences in more detail (If you’re interested, or just keen on seeing some real references within). Check out the  Link here