Exploring the unique challenges for women when it comes to investing

Written by ProVise Management

On June 24, 2020

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Investing is a great way to grow your excess funds to reach a short-term or long-term financial goal. More women are investing today than ever before, but the majority of investing is still done by men. So, why are women not doing it as much as men

Women face unique challenges when it comes to investing that make them less likely to get involved or to achieve as much success.

Women still earn less than men

As of 2020, women are still earning less than men for the same jobs. In controlled pay groups (pay for men and women with the same job and qualifications), women earn $0.98 to every dollar earned by men. In uncontrolled pay groups (salary for men and women regardless of job and qualification), the gap is staggeringly larger at $0.81 to every dollar. Sadly, this gap is even larger for women of color. While this gap is slowly closing every year, it is still there affecting how much women can earn, and in turn, how much they can spare for investments.

So, what is there to do about this? For starters, you can adjust your living expenses to allow you to save enough to start investing or to continue contributing to an existing investment. Then, you can start saving and making investments now. Even if you do not have a lot to invest, you can start now to build your portfolio, so you will have more to invest in the future. 

Female investors tend to take fewer risks

When it comes to finances, studies show that women tend to be more conservative than men. Further, 11% of female investors have a high-risk tolerance and invest aggressively, while 25% of male investors make risky decisions.

Conservative investments might be the right choice for you based on your circumstances and your goals, especially if you are an independent woman or a single mother with many responsibilities. However, if you want to earn higher returns on your investments, you typically have to be willing to be more aggressive and take some risks.

Women have more health care expenses

On average, women spend more on health care throughout their lives than men. Part of this is due to the expense of childbirth, but senior women tend to spend more on health care as well. Because women spend more on health care, they tend to have less leftover for investing in stocks or in their retirement portfolio.

You can navigate this challenge by finding a health care plan more optimized for your well-being and by developing a financial strategy that takes your health needs into consideration. 

Female investors can trust ProVise 

Whether you are new to investing or are looking for ways to optimize your current strategy, ProVise Management Group is here to help. Our female professional team members are familiar with the unique challenges facing women every day when it comes to their finances. We are proud to offer financial services that specifically cater to the needs of independent women who want to reach their financial goals.

We will work closely with you to assess your circumstances and review your goals and risk tolerance to help come up with a financial strategy for you. The plans we create are always personalized to the needs and values of each individual client. We also offer an unconditional money-back guarantee if you are unhappy with your written plan. Simply return it to us and we will refund 100% of the fee paid.

Are you an independent woman who is ready to reach your financial goals? We are here to help. Contact ProVise today to schedule a complimentary consultation.

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