What are the biggest challenges facing women looking to control their own investments?

Question

It is getting better as more and more women begin to take control of their investment decisions, but I would still imagine there is a barrier that exists for women trying to do so. Are there any women out there who have gone through some of these that could offer examples or descriptions of what the experience was like for them? Or any women out there that want to invest but dont because of these underlying barriers that could offer their story?

Answer 1

I think the greatest challenge women face regarding their investments, is that they fail to be well-informed. There are good and bad investments, and it varies according to a woman's age and circumstances. This is a situation many women face as they approach retirement age, or are new widows or divorcees, some of whom still have small children to support. I've found that the only true barrier that exists in the case of women, is that they don't do enough homework before they invest their pensions, inheritances, or whatever windfall they want to secure for their future.

I have found where I live, there are many workshops and seminars offered to give financial advice, not only to self-sufficient women, but to retired couples as well. My experience has been to know the company, the agent, keep abreast of the market, think ahead, and tailor-make the investment to suit the individual's circumstance. For example, investing heavily in the stock market may be wise for a person in her 30's or 40's, but a poor choice for one who is nearing or is retirement age, as it can be either profitable or risky. Due to the instability of stock market investments, most people distribute their funds among various choices, such as IRA's and 401K's, annuities, certificates of deposit, mutual funds, government bonds, etc. Variable distribution -- some of which is tax deferred, offers not only better security, but increased income. I still say, however, that it's important to rely on a financial advisor who is trustworthy and has your best interests at heart. Be aware of the pitfalls and stay informed. Your future may depend on it.

Answer 2

I'm a former financial planner.

I found a corelation that the more money the woman earned the less she knew about investing. The less money she earned, the more investing she did and she was well informed.

The biggest product that most women don't realize they need is "Long Term Care" insurance (after good health insurance, retirement, and savings). This is due to the social age difference of men and women. Men typically live 75 years while women live 80 years. Add to this that most women marry older men (average 5 years) ... so this leaves her alone the last 10 years of her life. She's cared for her husband during his death, and often finds it hard to live without him. Childreen often will try to pick up and fill in, but they cannot fill the void of the husband. Add to this any dimensia ... and we have disaster. Long Term Care should be sought over in 50-60's ... and gives aging people insurance to get into expensive retirment communities.

In Demi's & Ashton's case the role is reversed and Ashton would be the one who would need the LTI

Answer 3

It's possibly the long-held idea that women should let a man provide for them. That might be what's keeping many women from investing.

A more serious problem is inheriting. Some people (especially women, who are less likely to ask about this) don't know the finer points of HOW they'll be getting their inheritances, and often find their their money is in another relative's control.

Answer 4

I don't perceive any barriers. I just find it tedious to do the requisite research to make a well-informed decision. I imagine many women feel the same way, and would prefer to spend their time on other things.
The only gender issue I see is that men tend to be willing to take greater risks. This is not exactly a barrier, but needs to be recognized when doing financial planning for women.