Investors preserve their finances for the future — 4 in 5 say they will achieve their desired retirement income

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One of the most striking phenomena of the pandemic has been the rise of retail investors, who have become savvier and more self-directed amid economic uncertainties and market volatility, thanks in part to new apps. Today, a new survey reveals that a majority of female investors – four out of five – are confident that they will achieve the income they want in retirement if they continue with their current investment strategy.

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eToro’s survey, “How Women Investors Are ‘Sustaining’ Their Finances in 2022,” also found that nearly one in five women plan to reach that retirement goal within the next five years. Additionally, the survey found that 72% of female investors say they invest at least once a month, 16% say they invest a third or more of their monthly income, and 53% say the pandemic has impacted their investing habits. investment.

“Female investors use investing as a powerful lever to secure their future, increase their income and/or to create net worth,” said Dr. Hedva Ber, Deputy Managing Director and Deputy Managing Director of eToro, in the investigation. “It’s clear from the research that female investors are carving out their own futures and building for the long haul, something to be celebrated.”

According to the survey, the top reasons women invest are to outgrow their savings, supplement their income, improve their lifestyle, generate a one-time payment and achieve financial independence.

Many of these women have started investing to generate additional income and counter low interest rates. Survey data shows that 22% started investing three to five years ago, 11% started six to 10 years ago and 47% started two years ago or less.

A fifth of female investors cite ‘long-term security’ as their main reason for embarking on this journey, while for 21%, financial independence for early retirement is their priority. Additionally, 76% of female investors see investing as part of managing their household finances.

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The consequences of the pandemic continue to linger, however, with 53% of female investors saying it has impacted their investing habits, and 30% saying they feel more pressure to improve their financial situation.

As for where they invest, the most popular investments for women are domestic stocks at 41%, followed by cryptos at 36%. Other investments they favor include domestic bonds at 25%, foreign stocks at 23%, alternative investments at 23%, cash at 21%, commodities at 14%, foreign bonds at 13% and currencies at 11%, notes the survey.

Interestingly, crypto was the top answer female investors plan to invest in in the future, at 35%.

Another finding from the survey is that female investors believe the best investment opportunities over the next three months will come from green energy and renewables, followed by “MAMAA” stocks: Meta, Apple, Microsoft, Amazon and Alphabet.

Finally, the survey notes that women tend to rely heavily on personal recommendations for how and when to invest, with 47% of female investors turning to friends, family or colleagues for information. More than half of female investors also mentioned the need for more female role models.

“Women clearly want to improve their finances and are hungry for more investment education. We need to heed the calls for more female role models and ensure they represent the diversity of women who could benefit from learning more about investing. Financial education is essential and although progress is being made, there is still work to be done. We have a responsibility to make a positive difference in the lives of women now and in the future.

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“Women clearly want to improve their finances and are hungry for more investment education,” eToro’s Ber said in the survey. “We need to respond to calls for more female role models and ensure they represent the diversity of women who could benefit from learning more about investing. Financial education is key and while progress is being made, there is still work to be done.We have a responsibility to make a positive difference in the lives of women today and in the future.

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About the Author

Yael Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She has also worked as a VP/Senior Content Writer for major New York-based financial firms, including New York Life and MSCI. Yael is now independent and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in journalism from New York University and one in Russian studies from Toulouse-Jean Jaurès University, France.

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