While nearly all women are highly involved in day-to-day financial tasks, most do not engage in long-term planning. Data still indicates that men are more likely to be seen as the “expert” or take the lead on long-term financing for the family.** It seems like a convenient strategy, as women are more likely to be burdened with the responsibility of children, family, and sometimes even aging parents in their younger years, but if you are a woman, you might want to rethink that strategy.
Women, on average, live longer than men. This means women need their money to last longer, sometimes decades longer. A longer lifespan increases exposure to inflation, stock market cycles, healthcare costs, and long-term care expenses.
Sally Putnam, founder of NOW Financial based in Chandler, specializes in working with women who find themselves “suddenly single,” often due to death or divorce. She works with women who thought their husbands would be there to take care of their long-term financial needs, but may instead find themselves navigating their finances on their own.
“As a woman financial advisor, I’m frequently asked if women’s investing needs are truly different from men’s—or is this just another stereotype?” says Putnam. “The fundamentals of investing are the same for everyone, but the context surrounding women’s financial lives often creates different priorities, risks, and strategies.”
That doesn’t mean financial strategies should put women in a box. Instead, it’s about building a financial plan that reflects the real-life financial struggles many women face. On average, women still earn less than men and are less likely to receive business windfalls during their working years.
Many women also experience career interruptions due to caregiving, raising children, caring for aging parents, or supporting family members. These pauses can negatively impact retirement savings, Social Security benefits, and employer-sponsored plans. That means it is important for women to have their own financial plan to overcome those inequities in a way that keeps them financially safe during the twilight years of their lives.
For women, investing is often less about “beating the market” and more about sustainability. They need a plan that balances growth with their long-term income needs. Women can often be labeled as “conservative investors,” but that doesn’t mean they are risk-averse. They are often much more risk-aware because they understand the stakes. Successful investing isn’t about taking the most risk—it’s about taking the right amount of risk for your life, goals, and responsibilities.
Sally Putnam often meets with women who find themselves suddenly single because of either death or divorce. Many of these women never thought of asking their husbands about their financial plan for retirement. They are terrified they may not have enough money, and many of them don’t even know who to trust or where to begin.
“The worst thing you can do is not have a plan,” says Putnam. “Without a plan, the fear intensifies.”
Should women invest differently than men? The truth is that women don’t necessarily need different investments, but they do often need different conversations. Conversations that acknowledge longevity, life transitions, caregiving, and independence. The goal isn’t to invest like a man or a woman. The goal is to invest like yourself, with intention, understanding, and a plan built for the life you’re living.
Putnam can be reached at putnam.sally@nowfinancialaz.com.
** UBS Own Your Worth Report, 2023
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