Do Women Need a Female Financial Advisor?

Would it surprise you if I told you that women are better money managers than men? It starts with a different relationship with money. Women do not view money as the ultimate goal, tend not to flaunt it with objects that are symbolic of success, and don't involve it in their identity to the extent as men. Becoming a millionaire is usually not the final accomplishment and stopping point for women. Instead, money is a tool that enables women to enjoy the benefits and freedoms of life. 

When I commenced my Investing journey and spent time researching on various forums, it became clear to me that women are more careful and thoughtful about risking their money. We are not trying to score a goal during extra time in the market, but look for stability and safety in an investment. "How safe is this," was the most common question and should be asked at every turn. So, women tend to have a similar relationship with money. That is, for us women, money is not a game to see who has more, nor is it a status symbol. Since, men just view money differently, their riskier mind-set interferes with the core money relationship women have. 

But, what bothered me the most about being researching the financial industry and meeting Financial Advisors, is that women were treated differently and even inferior by other men. It was not uncommon to see a male financial advisor talk to my husband when we as a couple met for advice. I understand that it is a male dominated field, but there is no excuse for this behavior as I was practically ignored, despite undertaking all the financial aspects (including investing) in our household. Speaking with other women, they have all had similar experiences.

In retirement, low risk investing is not only practical, its essential because you don't have time to start over. A study found that female hedge fund managers out-preformed men by 10% over a nine-year period in 2019. A hedge fund, originally named to hedge against market losses, has evolved. Now it is a managed fund (not indexed) that is less regulated in terms of using leverage. Using leverage dramatically increases investor risk. 

The study points out four primary differences. 

1. Women are less competitive and less preoccupied with beating an index

2. Women take fewer risks in the market as with other areas of life

3. Women do more homework and stay in investments longer

4. Women realise they are not in control

Realising you are not in control of all factors gives women the perspective to not panic. So, women need a female financial advisor because: 

1. Your relationship with money is similar on an emotional level

2. Safety and sustainability of your money is the priority, especially in retirement

 3. Female advisors tend to establish a more personal relationship with clients

4. Women, with the same experience as men, are better investors on average

There is a deeper sense of trust with another woman

Article Source: https://EzineArticles.com/expert/H_Lee_Johnson/2155805