Tick Tock Away in the Market
“It’s not timing the market, but TIME IN the market,” says Bre Bovara, Vice President and Wealth Management Advisor at Fifth Third Private Bank.
In a recent Well Within 10 podcast, we learned why recent economic uncertainty is happening and how we can best be prepared. This coupled with new information regarding women’s investing habits, leaves us with a few guideposts – all advised by Fifth Third Bank.
Because women earn 82 cents for every dollar men earn, it makes sense women are likely to invest more conservatively than men. According to the Motely Fool, “the average woman keeps 68% of her portfolio in cash and cash equivalents, compared to 59% of the average man's portfolio.”
But on the flipside, research indicates women are better at investing than men, with a difference of up to 1% better investment returns. Likely reasons?
- Women are more disciplined savers. According to Vanguard, women at all income levels have higher retirement plan participation rates than men.
- Women are less impulsive than men, and data indicates women don't tend to react to market fluctuations the same way men do.
Keeping up with today’s inflation feels like bad timing to invest, but remember inflation is cyclical. And it’s not the timing of the market, it’s the time within the market. Keeping track of cash flow can help us drive awareness of where we currently stand to know how to move forward.
“Women tend to be more conservative in their portfolios (holding more cash) which poses an issue in keeping up with today’s inflation PLUS the headwinds with the gender wage gap AND career gaps AND women living longer than men,” says Bovara. “Statistically speaking though, those women who ARE in the market actually outperform their male counterparts”
Knowing this, how do we get started?
Get started with Of Note, by Fifth Third Private Bank and WISe Wellness Guild, and meet our trusted team of financial advisors.
This blog is powered by Fifth Third Private Bank, bringing more than 160 years of experience as trusted advisors to high net worth and ultra high net worth individuals and families. With over 36 billion in managed assets, and named one of the top 40 wealth management firms in the US by Barron's. One of the world's best private banks by Global Finance in 2020 and 2021.
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