As we approach our National Women’s Day we thought it may be interesting to see the difference between how Men and Women view finances and particularly as investors which of the genders is more astute and successful at it. As the John Gray book says, ‘Men are from Mars and Women are from Venus,’ but is this relevant when it comes to money? Well, in some ways yes. Let’s face it, we have plenty of great women in finance (including some of our own Financial Advisors) and these Women have shown up their male counterparts on many occasions, but what is it essentially that makes them different as investors?

Women take a longer-term approach

One of the most significant differences between the sexes is that Women are ‘gatherers’ as we have been led to believe, and Men are ‘hunters.’ This is reflected in certain research that has been done in this area that shows 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.

Interesting research shows that Women are in fact more likely to use the services of a Financial Advisor as they generally lack confidence in their own investing abilities, but certainly not all of them and as we celebrate our National Women’s Day we can be very proud of the large number of very successful female investors that we have in this country.

Seeking expert advice can have its rewards

This trust that Women have in seeking expert advice has assisted them to be generally happier than Men with the investments that they choose. Globally it is said that over 75% of investors are Men, but research has also shown that far more Men than Women are not entirely happy with their investments.

One plus for the Men, however, is that given their more pioneering spirit they do tend to invest more than a lot of Women who, because of their lack of confidence as investors, tend to just save. This is not a good idea as standard savings simply don’t keep up with inflation. To these Women, we say, talk to a Financial Advisor as most of your sisters tend to do, and let them get you on the investment path.

Working with differences is our strength!

So, do Women view finance differently than Men? Well, the answer would have to be generally yes but it is clear that not all women are the same and neither are all Men. Hereford Group have for the past 35 years prided itself on understanding this and we work with everyone, Male or Female with the same approach – that is to determine what works for you and create wealth for you based on your unique circumstances. Talk to us today and let us demonstrate to you that we are highly trained experts that can make your money work for you – no matter how you view it! To all our ladies, we wish health, wealth and prosperity – and a happy National Women’s Day!