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Could women have a behavioral advantage in investing? A recent Fidelity study found that women investors tend to achieve positive returns and outperform men by 0.4%.

In this episode of Money Wisdom, Nicholas J. Colantuono, CFP® and Jennifer Killilea draw on insights from this study to explore why women investors have a slight edge over men.

Different Approaches to Investing

Women are generally more patient, describe themselves as more conservative investors, and are more likely to stay the course. Women also tend to be less emotional about their finances and trade less frequently. On the other hand, men are often more impulsive, which can hurt long-term performance.

Knowledge vs. Confidence

In a 2024 study, women scored higher on investment knowledge, yet they described themselves as less confident. On the contrary, men rated themselves as more confident despite scoring lower. As it turns out, confidence doesn’t always equal better outcomes. In fact, working with a financial planner can help anyone stay on track, regardless of confidence level.

Age and Income Gap

Women often face additional financial challenges. Women tend to live longer than men, which means their money needs to last longer. At the same time, they may have smaller nest eggs because of time spent out of the workforce or wage gaps. For all these reasons, a more prudent and disciplined approach becomes even more critical.

Healthcare is another major concern that often falls to women to care for aging parents. Planning for healthcare costs, especially long-term care, is one of the biggest unknowns in any financial plan. Many people end up self-insuring for this risk, which can create additional stress and uncertainty.

Becoming a More Informed Investor

Education is key to improving your skills as an investor. Start with simple, accessible resources that answer common financial questions in plain language. Most people don’t need to understand every technical detail. At the end of the day, what both male and female investors want is reassurance that they’re going to be okay.

Interested in building a simple, actionable plan for your retirement and investment success? Get your free Money Map book by texting “MAP” to 800-757-0436.