Why Most Wealthy Women Are Not Interested in the Stock Market
NEW YORK (MainStreet While most wealthy women (52%) agree that the stock market is the best way to grow savings, they just don't want to hear about it. Two in five (41%) admit they are "not at all" confident in their ability to invest, but fully 58% say they are not interested in learning more about how to invest, according to a new Wells Fargo survey.
It seems the more money they make the less interested they are, and there's a big reason why. Nearly two-thirds (64%) say they have become more risk-averse as they have built their wealth -- and a third (34%) say the stock market is simply "too risky" for them.
"Today's affluent women are financially savvy working women, but investing confidence doesn't follow hand in hand with increased wealth," said Karen Wimbish, director of retail retirement at Wells Fargo. "Through our research, we see that investing confidence seems to be the linchpin to so many other positive behaviors that would provide an opportunity for women to grow their savings and to build a solid foundation in retirement."
Most wealthy women (91%) say it is important that women be confident in their ability to invest and yet only 8% describe themselves as "extremely confident." "I find it so interesting nearly all of these women say confidence in investing is very important they recognize the power of confidence but at the same time, they are ambivalent about their own confidence and a majority is not interested in learning more," says Wimbish. "These women are in households with very strong resource levels, so the next step is to be totally aware of how the market can help them and to feel in control of their efforts to invest and grow savings for retirement."
Affluent women say their retirement goal is to have a nest egg of about $1.5 million when they retire at the (average) age of 66, but fewer than 40% have a written retirement plan to meet that goal.
But for women of means, it's not all about the money. The majority of affluent women (88%) feel a successful life is best defined by "peace of mind" rather than great achievements (10%). Women say that a successful retirement is defined as having enough money to live the lifestyle they want (39%), being healthy (30%) and spending time with family and friends (16%).
Poor health in retirement (57%) is the biggest fear of affluent women even more than running out of money (40%). Having to remain at work instead of retiring is the least of their concerns (16%).
And while healthcare is a top-of-the-mind topic, nearly a third of married affluent women (29%) and their spouses have not discussed "how they will address any potential major healthcare issues."
--Written by Hal M. Bundrick for MainStreet