How Can You Be a More Confident Investor?

Financial Decoder

In assessments that show women to be less financially literate than men, is that gap due to a lack of knowledge or a lack of confidence? One recent study revealed that women tend to disproportionately respond “do not know” to questions measuring financial knowledge, but when this response is unavailable, the gap closes substantially.

In this episode, Mark tells the story of Monique Currie—a highly successful basketball player in college and the WNBA. Despite all her talent and achievements, Currie has noted how women basketball players tend to be less confident than their male counterparts.

Lacking confidence when it comes to complex tasks, such as investing in a diversified portfolio or mapping out a financial plan, can seem intimidating to anyone of any gender, but are there strategies that can help you overcome some forms of underconfidence?

Mark speaks with Laura McDowell, a regional director at Schwab. Laura is a CERTIFIED FINANCIAL PLANNER™ professional, a Certified Investment Management Analyst® (CIMA), and an Accredited Investment Fiduciary® (AIF). They discuss changing demographics, why some people suffer from impostor syndrome, and how to empower the next generation of women investors.

You can read more about the study that shows women are often more knowledgeable in financial matters than they think in this working paper from the National Bureau of Economic Research.

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Financial Decoder is an original podcast from Charles Schwab. For more on the series, visit Schwab.com/FinancialDecoder.

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Important Disclosures

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Investing involves risk including loss of principal.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

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