July 28, 2026

Why women must be more engaged in investing

Although women will inherit a significant portion of the trillions of dollars that will be bequeathed to heirs over the next two decades, many of them are not engaged in investing as much as their male counterparts. Two Million Dollar Round Table members, Ann Baker Ronn and Danielle Lucht, recently shared why women must be more engaged in investing, some of the barriers women face, and a few steps that advisors can take to help remove these barriers and empower more women to invest.

Why women don’t invest more

Ronn, director of insurance at AFP Group, said that some of the reasons why more women do not invest stem from women’s tendency to be a bit more “conservative” by nature. However, she added that this is a generalization since not all women are the same. For example, she explained, many women like to have more than six months of emergency funds in cash when their money could work harder for them if invested for the long term.

“I think it is a lot about lack of education. When women understand the power of compounding in the stock market, they feel comfortable to keep that money working for them over the long run,” she added. “Women typically live longer than men do, so they have a longer time horizon and need their money to work harder for them.”

For Lucht, owner/financial advisor at Everwell Financial, one of the biggest barriers for women is the perception that there simply is not enough room in the budget to invest beyond a traditional 401(k) or 403(b) plan. For many women, she explained, that concern is very real. Certain aspects of life can be more expensive for women, particularly for those rebuilding after divorce, raising children on their own, caring for aging parents or managing a household on a single income.

More women are also choosing not to marry, and the wage gap remains a challenge in many industries. “Together,” Lucht said, “these factors can make it difficult to identify extra dollars to invest. I can relate personally as a divorced mother who has worked to rebuild her own financial life after divorce.”

Another major factor is a lack of confidence, Lucht added. Women understand the value of a dollar and often have a strong ability to stretch limited resources. Yet that same awareness can make investing feel intimidating.

“Many women worry that they do not know enough about the markets, do not understand how to invest properly, or do not know who to trust for advice. Rather than risk making the wrong decision, some choose not to invest at all,” she said.

A third reason, Lucht added, is the way in which some advisors approach and relate to female clients. The industry has long recognized that many widows change advisors after the death of a spouse. That is a significant decision to make during one of life’s most stressful transitions, and it often suggests that the widow did not have a meaningful relationship with the advisor beforehand.

“As an industry,” Lucht said, “we also need to ask whether we are truly meeting women where they are in life. Are we making our services accessible to their work and family schedules? Are we creating opportunities for women to build relationships with advisors and firms before asking them to make a major financial decision? And are we recognizing the unique financial and personal transitions women experience at different stages of life?”

Challenges women face

What are some of the challenges women typically face when they want to invest? Some common challenges include time, knowing who to trust, making investing a priority, and letting go of guilt or regret about past financial decisions, Lucht said. Many women carry emotional “baggage” about where they are financially or about choices they made when they were younger. “Those feelings can become barriers to taking the next step,” she said.

Empowering more women to invest

To empower more women to invest, an advisor can start by meeting women where they are and giving them opportunities to understand the advisor’s philosophy, values and mission before they become clients, Lucht said. That can happen through educational content, social media and events that feel approachable rather than transactional.

“At my firm,” Lucht said, “we have hosted family-friendly events where parents and grandparents can bring children and grandchildren. One recent movie premiere event brought together multiple generations and gave families a relaxed way to connect with our team. It also created an opportunity to meet the next generation that may one day inherit wealth from parents and grandparents.”

Lucht added that these types of events are also helpful because they allow female clients to bring friends and referrals into a comfortable setting. “Spending quality time with children, friends and family is a priority for many women, and traditional seminar dinners may not resonate with younger generations. Women often respond to events that are family-friendly, authentic and relevant to their lives. Many successful women who are now clients of the firm first connected with us through these kinds of experiences, which gave them time to get to know me, understand our mission and build trust over time,” she said.

Social media can also be a powerful tool for helping women feel more confident about investing, Lucht added. It allows clients, prospects and centers of influence to get to know an advisor on their own time and in a format that feels convenient. It also gives advisors a way to educate in small, approachable pieces, gradually building confidence and helping women identify the areas where they want more information.

“By showing up authentically, advisors can help people understand who they are and whether the firm is the right fit. I am very clear with prospective clients that if they are looking for a traditional ‘Wall Street’ experience, my firm may not be the right fit,” Lucht said. “If they are looking for a firm that feels warm, personal and family-oriented, that is what we aim to provide.”

Finally, Lucht said, advisors should be willing to bring appropriate vulnerability to the table. She said that she is open about the highs and lows of her own financial life because she believes clients need to know that she practices what she preaches.

“By sharing what I have done well, where I have made mistakes and what I would do differently, I can help create a safe space for clients to share their own concerns. That kind of trust allows advisors to better understand the issues clients are facing and help them take meaningful next steps toward improving their financial future.”

Lucht added that her female clients understand her firm’s mission, values and goals. And as a firm, she said, “we are attentive and listen with full presence to what their goals are to be able to really help them get there by tailoring a plan that works for them, whether it’s investing, planning or both. Active listening is an important component.”

Some advisors look at what people have and tell them what to do, Lucht said. “But,” she added, “women want to learn, and not be told what they should do, but why.”

More steps for empowerment

Education is the key to empowering women, Ronn said, as she shared additional steps for empowerment.

She explained that people don’t keep money in cash because that is the best place to keep it; they keep it there because:

They believe that is the least risky place, and they do not consider how inflation erodes the growth of that money.
They don’t have anyone to help them diversify their money in a safe asset allocation.
They don’t have a “coach” to hold their hand when the market gets rocky. “Buying into the stock market is only a part of the equation; staying invested is equally important!” she said.
Women are often “on their own,” and they need help in navigating something unfamiliar and perhaps uncomfortable for them.

Ronn added that her firm has many single female clients who don’t have anyone to help them make financial decisions. “So,” she said, “we become their sounding board to help them know if they can spend money for a home remodel or to buy a car for their child. It is challenging to have to make big decisions all by themselves; it helps to have an advisor walk them through their financial situation to determine if it is OK to spend money on a big-ticket item.”

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