I’m a Financial Advisor. Here’s My Tips on How Women Can Build Confidence Investing

Many of my female clients come to me feeling intimidated by investing. It’s understandable—our industry is often filled with men geeking out on complex topics like Sharpe ratios and technical analysis.

While it can seem like men are more financially savvy, research shows women are actually better investors than men. They are more likely to do their research and stick with the plan, less prone to overconfidence, and perform better on both the retail and professional money manager sides.

Here’s how I’m talking to my female clients about getting started on their investing journey with confidence.

Key Takeaways

• Studies show women outperform men by 1.8% annually due to traits like research, discipline, and less overconfidence.
• To build confidence, begin by understanding your current investments, defining asset allocation goals, and selecting appropriate funds with manageable fees.
• Avoid letting fear dictate your actions—set clear objectives and follow through with a consistent investment strategy.

What I’m Telling My Clients

The research shows women are great investors, but starting your investing journey can still feel scary. Here are some simple first steps:

1. Understand what you may already own. Do you have a retirement plan at work, an account you may have set up years ago, or something you own jointly with a spouse or partner? Find out the names of the investments inside those accounts and do a little research on what they are composed of. 
2. Develop a big-picture objective for the asset allocation you want to own. At the broadest level, that means the percentage of stocks vs. bonds.
3. Pick funds inside your accounts that get you to that allocation. While you’re at it, take a peek at the costs and fees of those funds. 
4. Once you have your plan in place, stick to it! Watch out for the temptation to fall prey to fear or think you can predict what the market will do next.

Note

According to a study from the Warwick School of Business, women investors outperformed men at investing by 1.8% each year.

The Bottom Line

Building confidence as a female investor starts with recognizing your own potential. Women have proven to be more disciplined and successful investors than many people realize. Although investing can feel intimidating, taking small, manageable steps—such as assessing your current assets, setting clear goals, and choosing the right funds—can help you begin your journey confidently.