How different are we?
Studies reveal stark differences when making financial decisions.
Women have different needs than men when it comes to making financial, insurance and retirement decisions. A 2011 study from Prudential, “Financial Experience and Behaviors Among Women,” revealed that some 95 percent of women are directly involved in their households’ financial decisions and 25 percent stated that they were the primary decision-maker.
While an increasing number of women are making the financial decisions, many are doing so uneasily. Roughly 82 percent of those surveyed by Prudential said they needed “some” or “a lot of” help in making those decisions, and nine out of 10 weren’t confident they knew how to choose the appropriate financial products needed to meet their needs.
When making an investment decision, women are most likely to gather information from their spouse (64 percent), printed materials (62 percent) and the Internet (42 percent).
Only one-third of women stated that they had a detailed financial plan in place. Why so few? The most common barriers cited include: lack of time, the pull to meet shorter-term financial obligations, lack of knowledge and an unmet desire for assistance.
What’s their top priority? Some 74 percent of women rank “concern about their children, grandchildren” as their top financial planning priority. Reuters reports this frames their financial discussions in terms of the end goal.
“They don’t want to hear about the growth or comparative performance of different funds; they want information about reaching their long-term goals, like putting a kid through college,” a recent article from The Wall Street Journal said.
A study from Hearts and Wallets found that women demand more than men from their financial services firms. Some important qualities women look for are that the advisor “explains things in understandable terms” and “clearly and understandably presented fees.” They also prefer to have a collaborative relationship with their advisor.
At Coliday we offer free consultation (women to women if desired) to help identify those concerns and strategies to help. Statistics show a national average of women out-living men by 2 to 7 years with many living 10 to 20 years longer. Having a solid plan for retirement is crucial. So whether you’re single, married, separated or widowed, we can help. Call us at (949) 495-2016 or email at firstname.lastname@example.org