Battle of the Sexes: Women vs. Men in Investments

Battle of the Sexes: Who Invests Better, Men or Women?

March 18, 2019

By Krista Biernbaum, CFP®
Securities Analyst II

Who is better at investing their money, men or women? The answer may surprise you.

I recently had the opportunity to attend a workshop by Brett R. Danko, CFP® at the Financial Planning Association of Nebraska’s March 2019 Continuing Education (CE) Day. My favorite session was the one titled, "Women & Money/Men & Money." It was especially interesting for us as financial professionals, because we help women plan for retirement just as often as men. (Additionally, the information presented helped me recognize how my fiancée and I might think differently when it comes to managing money). 

As the session continued, we found out some interesting facts on men vs. women when it comes to money. Some of the results may surprise you; some may provide validation.

Who spends more, women or men?

The answer may surprise you; men and women spend the same amount. The difference, according to Danko, is in how the money is spent.  Women tend to spend money on smaller items, while men tend to spend money on the bigger ticket items. For example, I am more likely to go shopping periodically and buy a new shirt or shoes. My fiancée is more likely to buy a bigger TV for our living room or a new motorcycle for weekend riding.

Who invests more aggressively, women or men?

Men are the risk takers when it comes to investing, because they are more apt to have an aggressively invested portfolio than are women. However, even though men take on more risk, research shows that women recognize better rates of return over time. Men tend to be overconfident and make frequent changes on their investments, whereas women are more likely to take a more passive, moderate, long-term approach.

Who saves more, women or men?

Women actually tend to save a larger percentage of our paychecks than men do. But even though we save more, women tend to retire with less savings than men do. Why? Because women usually make less than men, for a variety of reasons — so the higher percentage is applied to a smaller dollar amount.

Here are some alarming facts about women’s finances:

  • Did you know that, on average, women retire at age 65 with only half of the assets that men do?
  • In addition, women are living longer than men. Therefore, many women live off less money for a longer period!

This needs to change. And awareness is the first step to fixing a problem.

Women are strong; we have the ability to do great things in life. So regardless of your gender, take control of your retirement, make sure you are saving enough and invest appropriately for your time horizon. At Security National Wealth Management, we can help. Contact your financial advisor today and let us help keep you from becoming another negative statistic.

About the Author

Krista Eberly, CFP®

Krista has worked in Security National Bank's Wealth Management Division since 2012. As a Portfolio Manager, she manages client portfolios, analyzes securities and performs daily trading activities. A Certified Financial Planner (CFP®), Krista holds a Bachelor of Science degree in mathematics from Wayne State College.