With high income comes higher confidence in one’s financial knowledge and investment acumen, but even high income women, as with their less wealthy counterparts, tend to downplay their financial literacy, according to a new Spectrem Group's study.
Spectrem’s study High Income Women Investors, examines the attitudes and concerns of women with a personal income of at least $200,000, or those with a household income of at least $400,000. These wealthy investors are more likely than Affluent investors overall to consider themselves only fairly knowledgeable with a great deal to learn (64 percent vs. 53 percent). Conversely, 16 percent of the general investor population consider themselves very knowledgeable about financial product and investments, only 11 percent of high income women said the same.
Still, four-in ten high income women enjoy investing and would not want to give it up (compared with 38 percent of all other affluent investors. An equal percentage reported they like to be actively involved in the day-to-day management of their portfolio.
When it comes to selecting investments, the two most important factors high income women consider are the diversification (93 percent) and the level of risk (91 percent)
High income women also consider:
- Reputation of the companies where the investment is made (86 percent)
- Tax implications of investments (80 percent)
- Pat track record (76 percent)
- Social responsibility (46 percent).
In each case, high income women put greater weight on these factors than all other affluent investors, particularly when it comes to diversification (93 percent vs. 81 percent).
Personal concerns tend to drive high income women’s investment selections and financial decisions, the study finds. They are more concerned than the overall Affluent population on matters concerning the financial status of their children and caring for their aging parents, as well college planning and estate planning.
For more information on High Income Women, click here