The Literate Investor—She’s Right Beside You

If I were to tell you that “you invest like a girl”, would that be considered an insult?

Admittedly, the topic of gender could be a sensitive one given the historical imbalances between men and woman within society. Having had the privilege of helping many couples with their investment and retirement plans, Pavilion advisors tend to see that men typically have taken more of an interest in the investment and financial planning decisions made for their families. But they are noticing that younger couples are much more likely to share the responsibility of making investment decisions.

A societal shift inside and outside of the home is resulting in women taking a more active role in making investment decisions for themselves and their families.

In this article, we explore the evolving role that women are playing in the financial decisions of households. New and revealing research into investor literacy and its impact on how females invest appears to reflect the level of involvement that Pavilion advisors are seeing with younger generations of clients. Research is also suggesting that the commonly held belief that women have drastically different risk preferences than men may not be entirely accurate. In addition, they are learning that the approach that women take in selecting their investments on an ongoing basis, in many cases, may be superior to that of men.

So it turns out that “investing like a girl” is a compliment.

Something is changing in the world of investing. For generations, men have been the primary breadwinners in families and, often, have taken responsibility for managing the household finances. The domain of investing that was once dominated by men is in flux, however.

A societal shift inside and outside of the home is resulting in women taking a more active role in making investment decisions for themselves and their families.

Read the article (pdf)