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SALT LAKE CITY — Researchers say women are becoming more involved in their family's finances than ever before. But they also say many women don't feel confident about making investment decisions.
According to the researchers at Prudential, women make the financial decisions of the household 95 percent of the time. But the same study shows that 86 percent of women feel they don't know how to choose financial products.
Mullennium Finance LLC President Bill Mullen says he's seen other studies showing women are less confident about asking about investments. He cites a Worldwide Organization for Women survey that shows women are uncomfortable asking these kinds of questions.
- 95% of women are the financial decision-makers in their households
- 57% of women say the market plunge has led them to become more cautious with their money
- 86% believe they do not know how to choose financial products
- 51% are not knowledgeable about generating income in retirement
"That same study said that 57 percent of married women believe that divorce is a real risk, and might prevent them from achieving and maintaining financial independence," Mullen said.
He says the advisors themselves may be part of the problem. He says they sometimes use a lot of jargon while talking to their clients, which can throw off anyone.
"Financial advisors think that it makes them sound important, but, it really just confuses people," Mullen said. "You've got to strip that away."
The good news, according to the Prudential study, is that women are very optimistic about their financial future, and they have a strong desire for more education and guidance. Mullen says he's noticed women can be better investors than men, in certain regards.
"The biggest thing in investing is keeping your emotions out of it," he said.
In his experience, Mullen says men are more prone to taking risks with their investments. Sometimes, risks can pay off big. But many times they don't.
"Men, on an investing standpoint, are more prone to gambling and speculating with money. Women are much more reluctant to do that," he said.
