Morningstar covered the launch of The Humphreys Group’s book Rewriting the Rules: Telling Truths About Women and Money, offering an insider’s look into why President Diane Bourdo and Financial Planner Hallie Kraus wrote the book and their goal for readers.
Here are the 10 myths that Diane Bourdo and Hallie Kraus addressed in their book:
1. Men are better investors than women.
2. Emotions and personal values should be kept separate from money and investing.
3. Women are more risk-averse than men.
4. Women lack confidence when it comes to money.
5. Women are less interested in investing.
6. Women are less knowledgeable about math and investing.
7. Women need extra help understanding their finances.
8. Women can’t save because they spend money irresponsibly.
9. Women will save enough for retirement if they set up a 401(k) and play by the rules.
10. We should focus our time on fixing the gender income gap, not the wealth gap.
After defining these harmful myths, Diane Bourdo and Hallie Kraus rewrote the rules:
1. Women possess all the qualities needed for long-term investment success.
2. Empathy and expertise both have a place in money matters.
3. Women have a healthy appetite for investment risk, but they’re more mindful about what the dangers are before diving in.
4. Women take time to reach well-informed decisions regarding finances.
5. Women are more ready than ever to carve out their place in the world of investing.
6. Mathematical expertise is not an innate characteristic; it’s a skill set that improves with effort and practice.
7. Women are taking initiative, proving they do not need to be coddled and cajoled into understanding their finances.
8. Women are powerful consumers with ample spending power, and we need to treat them as such.
9. 401(k)s won’t cover everything — women need to diversify their retirement portfolio.
10. The income gap is not the only thing hampering women’s financial mobility. Another alarming disparity is the wealth gap. And we need to fix it.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, retirement plan providers and sponsors, and institutional investors in the private capital markets.
