Why female investors will soar in 2024!

Not so long ago, when we were honouring women around National Women’s Day, we wrote about what great Investors women can be and the many reasons why they are potentially better wealth creators than men. Recent research has shown that not only is this so, but given the right assistance and motivation, they can become a far more significant force in the investment arena than is currently the case. So, let’s briefly revisit why are they better investors and why female investors will soar in 2024!

What makes women better investors?

In our article ‘Do women view finance differently than men?’ we cited that ‘’Men are more likely to go for new and riskier opportunities, whereas women are more likely to continue to build that nest, filling it with eggs over the long term and not executing many changes along the way. From a long-term wealth creation perspective, like pensions and retirement plans, this is a better way to go, but that does not mean that all Women are inflexible and will not diversify at all.’’

Women are more risk-averse than men and tend to hold onto their investments for longer, which usually results in better long-term performance. Yet there are still many fewer female investors than men, so…

What will break the mould?

These figures, in recent research and well-illustrated in the book ‘The Rise of the Female Investor: Part 2,’ written by Lisa Polson, a Seed Investment Analyst, have been clarified by Polson who says, ‘’alarmingly women invest 29% less than their male counterparts, and only one-third of women have a detailed financial plan in place.’’

This seems incredibly unbalanced given the many reasons women are potentially better investors, so why is this? According to the book ‘’When asked, one of the biggest barriers listed was an unmet desire for assistance. Many women feel they simply don’t know how to get started, and their tendency to be more prudent and cautious can make the process feel intimidating.’’

It is clear that they simply need astute financial advice to launch their wealth creation, and it is also an interesting fact that 70-80% of women find a new Financial Advisor within 18 months of the death of their spouse. This is simply because they have felt ignored or not been willing to add their input when in a partnership.

The Hereford Group Advantage

We firmly believe that in partnership with a good Financial Advisor and given the correct financial advice appertaining to their unique circumstances, female investors will soar in 2024!
As Polson so aptly puts it, ‘’ The truth is that female clients aren’t worried about the gender of their Advisor. They’re looking for an Advisor who can work with them in a supportive, collaborative and holistic way, as well as one who can notice and adapt to the nuances of working alongside a female client.’’

Hereford Group have admirably succeeded in the past 30 years by recognising that everyone, regardless of gender, is important and unique with specific requirements and aspirations for their future.

Male or female, talk to us in 2024 to review your portfolio and start you on the path to your most prosperous year yet. Also, if you are travelling for the holidays, talk to us now about ensuring you have a finance safety check – like accident and income protection cover, and a Will and Life insurance in place.

Travel safely, thanks a million for your support in 2023 and have a spectacular 2024!