Women Investors Find Balance Between Patience and Risk
Most women are comfortable taking risk in their investments and cite patience and discipline as their top investing strengths, a Schwab survey reveals.
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Women are pursuing a patient but risk-savvy course with their investments, and nine in 10 say they’re on course to achieve their financial goals.
That’s according to a survey by Charles Schwab that queried 1,200 female investors in the U.S. who are their household’s primary or joint financial decisionmakers.
Most women investors (61%) are comfortable with risk in their investments, and 80% focus on reaching long-term financial goals. Half (50%) cite patience as their chief investing strength, with discipline coming in second (45%).
The breakdown of women investors’ assessment of their strengths:
Patience — willing to wait for investments to grow, 50%
Discipline — stick to a plan and avoid emotional or impulsive decisions, 45%
Consistency — invest regularly to build portfolio over time, 33%
Planning — carefully plan investments to align with goals, 32%
Open-mindedness — willing to explore new investing products or strategies, 29%
Collaboration/Mentorship — seek advice to guide investment decisions, 24%
Knowledge — strong understanding of investment products and strategies, 21%
Survey respondents cited three lessons of investing they consider most important:
“As barriers to entry have come down and access to financial information and resources has increased, retail investor participation and engagement has skyrocketed — and women are a huge part of that trend,” said Jeannie Bidner, who heads Schwab’s Branch Network. “Women are laser focused on reaching their long-term investing goals — and they are digging into the process with enthusiasm. Today, more than ever before, women can invest how they want, and we are incredibly proud at Schwab to offer a vast range of low-cost products, advice, digital and human support, education and more to help investors meet their goals,” Bidner said in a news release.
Engaged and Empowered
More than nine in 10 women investors (91%) say they feel empowered managing their investments, and 83% enjoy investing. Almost two-thirds (62%) consider themselves investors, and 26% see themselves as traders. And 89% are very or somewhat confident about their investment strategies.
The survey authors report that women are “highly engaged” in the process of investing, with 42% doing their own research while also seeking the guidance of financial professionals. When seeking financial information, women turn to the following:
Professionals, 61%
The internet, 41%
Family, 39%
Investment or brokerage firm online resources 35%
Social media, 28%
Three-quarters of women (76%) value being able to seek financial information, research or advice anonymously.
Almost half of women investors (46%) discuss finances with others on an occasional basis, and 19% have such discussions frequently. Their financial conversations are most often with family (79%) and friends (56%). The top reasons are:
Getting financial information or advice, 56%
Supporting others with financial challenges, 41%
Gaining confidence in their financial decisions, 37%
Helping others manage their finances, 37%
“Women are confident and comfortable in the drivers’ seat when it comes to their investments and broader finances, but that doesn’t necessarily mean they are going it alone,” Bidner said. “They also value guidance from financial professionals and tap their own community to collaborate with others, including family and friends. For the women we surveyed, do it yourself doesn’t mean do it in isolation.”
An Early Start
Among women investors 51% started before the age of 30, 29% started in their 30s and 13% started in their 40s. Most began investing to grow their money and save for retirement. Two in five worked with a financial professional when they started investing, and the same number received advice, encouragement or support from family or friends, while a third turned to online resources or tools. Top reasons women say they started investing:
To grow their money, 70%
To save for retirement, 59%
To become financially independent, 40%
To reach financial goals like owning a home or paying for a child’s college education, 37%
To learn how, 25%
For fun, 8%
To participate in the markets, 8%
Individual stocks are the most popular investment type for women. Top investment products currently or previously owned by women investors are:
Stocks, 84%
Mutual funds, 58%
Bonds, 53%
Real estate investments, 50%
Cryptocurrencies, 32%
ETFs, 29%
Options or futures, 20%
Alternative investments, 18%
Overcoming Challenges
Most women (85%) wish they had started investing sooner, and 65% say the reason for the delay was that they lacked enough extra earnings to set aside. Women cited the following as hurdles to investing:
Lack of financial knowledge/education, 54%
Limited funds, 53%
Lower pay, 31%
Career pauses to care for children or others, 20%
Fewer job opportunities, 14%
Most women investors (90%) say they are on the right track to meet their financial goals. Women investors say investing has become more accessible (38%), there are more investment options (33%) and financial education is more broadly available (32%).
“Our study revealed some really encouraging trends for women investors, including a high level of optimism, a pragmatic approach towards risk and the ability to stay patient,” said Bidner. “Combine those factors with a commitment to core investing principals — which comes through in the data — and we see an incredibly bright future for women investors.”
