High-net-worth women are investing with confidence — and outperforming their peers. A new Charles Schwab survey reveals that 96% of wealthy women feel confident in their investment strategy, compared to 88% of women investors overall. So, what are they doing differently?
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In this “Financially Savvy Female” column, we’re chatting with Susan Hirshman, director of wealth management for Schwab Wealth Advisory, about the investing strategies high-net-worth women are using to win the wealth game.
They’re Building Wealth With a Solid Financial Plan
High-net-worth women are more likely to have a formal financial plan in place compared to women investors broadly — 70% of high-net-worth women investors have a plan in place versus 52% of women investors overall.
“The goal for our clients is to stay invested through market turmoil because evidence has shown that people that stay invested over the long run tend to do the best,” Hirshman said. “When you have a plan, when you know that there’s going to be ups and downs but you know in the long term that you’re going to be OK, you have more confidence and you’re more likely to stick to it.”
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They’re Working With Financial Experts
With a plan in place, many wealthy women turn to professional advisors to help them stay the course. The survey found that 82% of high-net-worth women investors have a financial advisor, compared to 60% of women investors overall.
“It’s the five E’s,” Hirshman said. “[Advisors] help to educate, empower, examine, execute and encourage.”
A professional advisor can educate you on the facts related to your investment decisions, empower you to take calculated risks, examine your existing portfolio and how it aligns with your goals, execute on the behaviors within your control and encourage you to think about your overall wealth plan. Having someone on your side every step of the way often leads to better investing outcomes.
They Stay Disciplined Through Market Ups and Downs
High-net-worth women investors tend to be deeply disciplined. They are more likely to cite strengths like sticking to a plan (57% versus 44%) and staying invested through volatility (74% versus 58%).
“Looking back in history, it is practically impossible to time the market,” Hirshman said. “When we talk about going out of the market, people forget that there’s two sides to the decision — going out and coming in. The coming in part is so hard because just missing those few top performing days can dramatically lower your performance.”
Staying disciplined and staying in the market is almost always the better strategy over the long term.
They Diversify With Alternatives and Stock Options
Wealthy women investors are more likely to have bought alternative investments (25% versus 18%) and options (25% versus 20%) compared to women investors overall, the survey found. These assets can both help bring diversity to an investment portfolio, and each have unique benefits.
“The market has changed over the last 30 years, and people are looking for enhanced return, enhanced diversification and higher income,” Hirshman said. “Those types of things are making people attracted to alternatives.”
Options can also be a smart investment for high-net-worth investors.
“A lot of women have entered the workforce and are corporate executives, and tend to have concentrated positions,” Hirshman said. “Using options as a way to help exit that concentrated position at a price that they want to achieve while earning income is something that we see people being open to.”
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This article originally appeared on GOBankingRates.com: 4 Smart Investing Moves High-Net-Worth Women Are Making in 2025
