We are reposting this video in honor of Women's History Month and International Women's Day! In this episode of “Investment Management Foundations,” Aya Yoshioka, Portfolio Consulting Director at Wealth Enhancement, discusses the topic of women and investing, highlighting a survey that shows 68% of women versus 55% of men are concerned about running out of money in retirement, as well as some additional topics.

VIDEO TRANSCRIPT BELOW

Hello. Welcome to today's edition of “Investment Management Foundations.” My name is Aya Yoshioka, Portfolio Consulting Director and Senior Investment Strategist here at Wealth Enhancement. Today, I'm here to discuss a topic that is near and dear to me: women and investing. As I've navigated a 25+-year career in the investment industry, it has become a more important topic.

Our firm recently conducted a survey about retirement and found that three in five Americans have concerns about running out of money during retirement, and the fear is more commonly held by women than men. 68% of women actually noted this concern, versus only 55% of men. Additionally, only 36% of women believe they would be able to afford everything they want in retirement, compared to 56% of men. And this is likely attributable to the fact that women typically live longer, and unfortunately, we earn less over our lifetimes compared to men. On average, women earn about 85% of what men earn for the same position and live about six years longer than men do.

With these stats, we as women need to make our hard earned money work harder and last longer. But studies show that women are less likely to participate in the stock market, and this can be seen in this chart that shows the gap between men and women, especially when it comes to brokerage accounts and retirement accounts. However, I would note that women control a third of total U.S. household financial assets, more than $10 trillion in total, and by 2030, it is estimated that American women will control nearly $30 trillion in financial assets as more women become family breadwinners and baby boomers transition assets more equally to their children. We have seen some encouraging changes over the years, and I know we are heading in the right direction.

Another stat from the McKinsey study noted that 30% more women are making financial and investment decisions versus just five years ago. Additionally, a Fidelity study, as seen on this chart, shows that the younger generations are embracing investing in financial markets, and they're investing in stocks and bonds, as well as cryptocurrencies, as you can see in this next chart. However, the same study found that only 43% of women felt prepared to handle future dips in markets, versus 62% of men. Although women do tend to stay invested longer, we believe women are modeling healthy investment behavior and making steady progress when it comes to managing financial assets.

Two of the best ways to continue this investment journey is to be open to learning more and reaching out to a financial advisor who can assist with tax management and advanced planning needs. Thank you again for tuning in to this episode of “Investment Management Foundations,” and we'll be back with another episode soon.

This information is not intended as a recommendation. The opinions are subject to change at any time and no forecasts can be guaranteed. Investment decisions should always be made based on an investor's specific circumstances. Investing involves risk, including possible loss of principal.

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