Women lead as investors
Research finds they trade less, but make more. Men are more likely to buy and sell on basis of news events, affecting long-term returns.
Research finds men are more likely to buy and sell on basis of news events, affecting long-term returns.
Women are said to have better intuition than men. However, all too often, that intuitive “gut instinct” is undervalued in favour of logic-heavy arguments, especially in fields such as finance and investing.
Women have been found to be better at investing than men.
A Warwick Business School study found men are more likely to buy and sell on impulse because of their sensitivity to news events. Female investors traded nine times on average per year, while for men it was 13. As a result, women made more out of their investments.
Jeanette Marais, deputy CEO of Momentum Metropolitan and CEO of Momentum Investments, is one of the most senior women in the financial services industry. Her father would often discuss financial decisions with her, which made her feel empowered.
“I have vivid memories of my parents discussing money.
“We didn’t lack for anything, but my mother had to ask my father for an allowance. I understood her need to be independent.”
A costly mistake early in her career – cashing in her pension fund to buy a home – reinforced the idea of how important it is to put away money, no matter what your circumstance or salary. She has an aversion to debt.
Institutional investing executive head Letshego Rankin says her mother was influential in her life.
“While being a wife and mother, she decided to study part-time to fulfil her career aspirations.
“She completed matric part-time and, when she passed, she pursued a degree in social studies.
“She finished a doctoral degree at Stellenbosch University in 2017.”
When Letshego began her career in 1995, she also pushed boundaries by working two jobs – a claims administrator by day and a retail assistant by night.
At a young age, she believed in establishing a good relationship with money.
These successful women didn’t get through life’s challenges by not making mistakes or having it easy.
Their journeys to success were built around these key savings pillars:
Start now: start saving R200, R100 or even R50 because it adds up. Stop buying a cup of coffee on the way to work every morning and you will see how easy it can be.
Review your bank statement monthly: going through your bank statement line by line with a highlighter will help you eliminate unnecessary expenses.
Review your insurance policies and investments: what worked for you years ago may not work for you now. You also need to be sure you are adequately covered.
Invest in a tax-free savings account: the benefit of not being taxed in retirement provides much relief.
Invest regularly in a diversified, multi-asset-class portfolio: this should include growth asset classes, such as equities, property and global investments.
Invest in a retirement annuity: there is no access to the money, so you will be forced to save until retirement.
Make sure you are covered for the unexpected: ensure you speak to a financial advisor about getting adequate insurance. –Momentum Investments