For instance, women tend to spend more time alone than men. A longer life expectancy is one reason. Another is that women may choose to stay home during child-raising years. The former may well mean a woman’s resources need to last a longer time; the latter may mean her income-earning years have been interrupted, likely affecting social security benefits and contributions to company-sponsored retirement plans.
But how do these and other circumstances manifest themselves?
A book entitled “Warren Buffet Invests Like a Girl – and Why You Should, Too” suggests that:
- Women are more risk averse than men, meaning they tend to be more conservative investors.
- Women trade less – and their portfolios perform better
- Women are more consistent investors
- Women engage in more thorough research
- Women tend to ignore peer pressure
I keep these tendencies firmly in mind when working with my many women clients. My next blog will explain how – while recognizing these factors -- I help women build their portfolios.