Are You a Money Manager or Wealth Investor?

Why Women Should Take an Active Role in Investing

Many women take excellent care of their household budget and finances, yet are less involved in the family’s overall investment strategy.  Since women often live longer than men, ensuring their voice, values, and financial goals are represented in family investment decisions is key to achieving women’s long term financial security and optionality.

Start Being Proactive Now

Rather than waiting for a significant life event to get actively involved in investing, start now.  A key to growing wealth is taking advantage of years and even decades of potential investment growth and compound returns.

Maintaining consistent savings to harness the power of investing can be harder for women for several reasons: 

• Career breaks for caregiving reduce women's lifetime earnings and retirement contributions — with women spending more time out of the workforce for family care compared to men.

• The gender pay gap continues, with women earning about 82 cents for every dollar men earn, leading to a nearly $1 million loss in earnings throughout their careers.(1, 2)

• Women who pause careers face the "motherhood penalty," affecting their current income as well as future earning potential, promotions, and retirement savings.

• Later-in-life or “gray” divorces (after age 50) hit women harder financially, with women experiencing a 41% drop in income compared to 23% for men.(3)

Smart investing can help women grow their assets through compound returns, diversification, and inflation protection — all vital elements for creating financial independence and long term security in retirement.

Women Invest Better

The good news is when women do invest, they tend to outperform men.  Despite having lower average account balances (primarily due to the gender pay gap), women consistently earn better returns over time.(4)

Research shows three distinct behaviors that contribute to women's investment success:

1. Balanced risk approach: About 53% of women choose a more balanced moderate investment strategy versus 39% of men.(4) The more balanced approach followed by women often produces more consistent returns with less volatility. This strategy can help shield their portfolios from losses that can hinder their progress towards reaching their long-term goals.

2. Resistance to fads and market hype: Studies show women conduct more thorough research and are less likely to jump on investment bandwagons.

3. Steadiness during market volatility: A study by Fidelity Investments found women were 8% more likely to stay the course during periods of market turbulence.(4) This emotional steadfastness can help prevent behaviors such as trying to time the market, which has been shown to significantly reduce returns over time.

These three strengths — careful research, emotional stability, and long-term focus — create what I call a “triple threat” advantage that helps women excel as investors. These behaviors translate directly into better financial outcomes, including potentially higher returns and more consistent growth through compounding — a key driver of long-term wealth creation.

Become a Strategic Investor

At Quantum, we work with many clients who haven’t yet had an opportunity to flex their investment muscles. Here’s how we help:

1. We create a clear picture of your finances. We start by helping you understand what you currently have. We look at things like your retirement accounts, investment accounts, and savings to take inventory of your financial situation, where your money is working for you, and potential areas for improvement.

2. We explain relevant investment concepts.  In plain language, we focus on what's relevant to your personal situation. We talk about how we spread your investments across different types of asset classes to manage risk while working toward your specific goals.

3. We guide productive money conversations for couples. We help couples through regular financial discussions that include both voices. These quarterly check-ins ensure both partners understand and contribute to important financial decisions that will shape their future together.

4. We connect your investments to your life goals. We help you link your investments to what you actually care about—whether that's a comfortable retirement, helping children with education, buying a vacation home, or travel. When you understand why you're investing, the process becomes more meaningful.

5. We provide steady guidance through market changes. We serve as your financial thought partners, offering objective advice and keeping emotions in check during market ups and downs. Our team can help serve as neutral facilitators when partners have different perspectives on money and investing.

If you're ready to become more engaged in your investment strategy, our team can provide the knowledge, tools, and supportive guidance to help you make that transition.

Contact us to discuss how we can partner with you to create a planning-focused investment strategy that reflects your personal goals and helps prepare you for a secure financial future.

Sources:

1. Pew Research Center. “Gender pay gap in U.S. hasn’t changed much in two decades.” Pewresearch.org. Mar. 1, 2023.

2. CBS News. “​​Women lose out on $900,000 in earnings in their lifetime due to pay gap.” Cbsnews.com. Mar. 14, 2023.

3. Kiplinger. “The Divorce Gap: Unique Retirement Issues for Women Over 50.” Kiplinger.com. Oct. 20, 2022.

4. The Motley Fool. “Women Outperform Men as Investors, Statistics Show. Here Are 3 Possible Reasons.” Nasdaq.com. Apr. 24, 2024.

Additional Resources: 

1. Kiplinger. “Half of All Households Have a Female CFO. Does Yours?” Kiplinger.com. Feb. 2, 2025. 

2. InvestmentNews. “What separates men and women when it comes to household finances?” investmentnews.com. Mar. 26, 2024.

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