Women control about 30% of all wealth in North America, says Julie Barker-Merz, president of BMO InvestorLine.
Yet, a recent BMO study finds only 68% of those surveyed feel confident when making investment decisions, compared to 83% of men.
However, “women are taking a larger role [when it comes to] the management of their own finances,” says Barker-Merz, “so we must work to understand and support…their needs.”
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On the bright side, one third of women (30%) already depend on advice when making investing decisions, compared to only 15% of men. Additionally, women are more likely to welcome education and guidance before committing to financial decisions.
When asked about financial goals, the women surveyed said they prefer safe investments (60%, compared to 44% of men) and that they strive to avoid major losses (51%, compared to 42% of men).
“Female investors tend to be more…focused on looking at the big picture and planning for the future,” says Barker-Merz. “However, there’s a distinction between being risk-averse and simply risk-aware,” so advisors need to discern which group their clients fall into during the discovery process.
Read: Rethinking risk aversion
Regional breakdown of results
|Region||% of women who are confident investors||% of men who are confident investors||% of Canadians who say investing has traditionally been a role for men||% of women who depend on advice||% of men who depend on advice|