Being a high income woman comes with greater confidence in one’s financial literacy, according to research Spectrem has conducted.  High income women are defined as those whose annual household income exceeds $200,000.   The majority of high income single women had annual household income exceeding $200,000, while married high income women had annual household income exceeding $400,000 and also work in professional or executive positions. More than six-in-ten high income women feel they are fairly knowledgeable about financial products and investments, but realize they still have a great deal to learn.  While only fifty-three percent of all other Affluent investors feel the same.  Another 11 percent feel they are very knowledgeable.  Their perceived level of knowledge is much higher than that of the general investor population. 

Only 24 percent of high income women feel they are not very knowledgeable or not at all knowledgeable about financial products and investments compared to 31 percent of all other Affluent investors.  This knowledge seems to lead to a greater number of high income women who enjoy investing and like to be actively involved in the day-to-day management of their investments.  Forty-three percent of high income women enjoy investing and do not wish to give it up while 38 percent of all other Affluent investors feel the same way. 

A primary benefit of working with a financial advisor is broadening ones scope of knowledge about financial products and investments.  High income women are more likely to use financial advisors than other investors.  Eighty-one percent of high income women use some form of financial advisor and 74 percent of all other affluent investors use some form of financial advisor.

Taking a risk usually means abandoning a safe position, but taking risk can also lead to a higher return on investment.  Seventy-one percent of high income women surveyed by Spectrem Group selected “taking risk” as one of the factors contributing to their wealth.  Hard work, education, frugality and smart investing were chosen more often than “taking risk” by the investors interviewed.  High income women are much more likely to take a risk than all other Affluent investors.  Only 51 percent of all other Affluent investors selected “taking risk” as a factor contributing to their wealth.

 

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