Diane Bourdo, CFP®, Private Wealth Advisor at Treehouse Wealth Advisors, was recently interviewed by Senior Contributor Larry Light at Forbes to discuss her book titled Rewriting the Rules: Telling Truths About Women and Money, which she co-authored with Hallie Kraus, CFP®, Private Wealth Advisor at Treehouse Wealth Advisors.
Despite progress being made, persistent stereotypes about women and money have led to their underrepresentation and misunderstanding in the financial world. In this interview, Diane discusses a few financial myths about women and critical areas of focus that she covers in her book.
Myth: Men Are Better Investors Than Women: While many assume men are better investors due to confident or aggressive decision-making, numerous studies show that women are better long-term investors. Women tend to be more patient and calculated in their approach, making fewer risky decisions.
Myth: Women Are More Risk-Averse Than Men: Women are not necessarily more risk-averse than men; they are simply more discerning about the types of risk they take. Women tend to prioritize financial security and are, therefore, more mindful of potential losses.
Myth: Women Know Less About Finances Than Men: When provided with resources, support, and opportunity, women quickly become confident and competent in managing their finances. Unfortunately, women are often not offered the same financial opportunities as men.
Money and Emotions Are Intertwined: There’s no reason to separate our emotions from financial decision-making. Instead, we should use our feelings to learn more about our economic behavior and make more informed and aligned decisions.
The Gender Wealth Gap Is A Crucial Topic: The gender wealth gap is more significant than the income gap and is also one of the least understood aspects of gender inequality. It refers to the difference in assets between men and women that accumulates over time due to pay inequality, caregiving responsibilities, and differences in financial risk-taking.
Diane expanded on the importance of the gender wealth gap and what it takes to close it. “While income is important, wealth is what allows individuals to weather financial storms, retire comfortably, and pass assets on to the next generation,” said Bourdo. “Closing the wealth gap requires not just earning more but also making smart investment decisions and planning for the long term.”
Treehouse Wealth Advisors is a fee-only wealth management firm based in the San Francisco Bay Area, serving innovators, legacy builders, and impact makers. The firm provides personalized financial planning, investment management, and wealth advisory services, helping clients navigate significant life changes while working toward fulfilling and meaningful lives.
