Millionaire men and women are at opposite ends of the spectrum when it comes to adopting a financial investing strategy, according to Fidelity Investments 2012 Millionaire Outlook Study released today.
Married millionaire women focus on holistic planning and are likely to shy away from risky investment, while men have their sights firmly set on investment returns, according to the survey. Men were nearly twice as likely as women to express interested in achieving the greatest return on an investment.
Millionaire women are more likely to use conservative investments such as certificates of deposit and money markets. Individual domestic bonds and domestic bond mutual funds were among their top five investments over the last year, according to the survey. Men, meanwhile, favor riskier vehicles such as individual domestic stocks, which nearly twice as many men as women added to their portfolios.
The survey hit on another gender gap that should interest advisors: Women are more receptive and willing to receive professional financial advice. Forty-four percent of women indicate that they need professional financial advice more now than in the past, and nearly 50 percent of those with no advisor would like to find an advisor they trust to manage their assets, according to the survey.
Among those who work with financial advisors, women were nearly twice as likely as men to be interested in holistic financial planning to attain a lifestyle or goal. They also express greater loyalty to their advisors. Forty-five percent of women using an advisor say they would be very likely to move their assets with their primary advisor if he or she changed firms. Just 23 percent of men say the same.
“Based on these findings, it is important for financial advisors to recognize that women may be looking for different investment strategies or have a different set of financial concerns that deserve consideration,” Alexandra Taussig, senior vice president of National Financial, a Fidelity Investments company, said in a statement.
“The reality is that nine out of 10 women will be solely responsible for their finances at some point in their lives. So it’s critical to not only engage women early, but regularly to retain the relationships.”
Fidelity Investments survey was conducted online from March 15 to 29. The results reflect responses from 1,520 financial decision makers, with 1,020 of those being millionaire investors. Fidelity worked with Bellomy Research, an independent third-party research firm, to conduct the study.