It's often been thought that when it comes to money and investing, women's tendencies to being overly cautious and basing decisions on personal experience would lead to a dead-end street in the world of finance. But it seems that these are the very traits that are putting women ahead.

Women generally take fewer risks than men do. Women trade stocks less often, saving money on costly transaction fees that have been known to eat up profits. They are also more likely to invest in companies whose social and ethical beliefs are similar to their own. Women tend to thoroughly research their investment choices before making decisions—an informed investor is a better investor. Instead of deterring women, these qualities are helping them choose more stable, long-term investments.

Women are not only coming out ahead, they're getting involved and having fun with their financial affairs. The number of women's investing clubs has exploded over the last ten years, and they are proving to be quite profitable.

In a study conducted by the University of California at Davis* that spanned from 1991-1997, women's portfolios gained 1.4% more than men's portfolios. And single women gained 2.3% greater returns than single men did. In fact, the 10-year study revealed that all-female investment clubs out-gained all-male clubs by 4.6%.

The numbers make it clear that these groups consist of more than chit-chat. Women are serious about their ventures. The main goal of most female investment clubs, ahead of making profits, is to learn about saving and investing money. Women are joining together to become better investors. And it's paying off.

Women are becoming more independent and better informed on how to deal with life's financial challenges. Yet they have specific financial concerns that should be addressed when developing plans and goals for a financially sound future.

—Since women typically live longer than men do, they spend more years in retirement, which requires more money.

—Women generally earn less than men do. So, not only do they need to save for more years, women need to do it with less income.

—According to the National Center for Women and Retirement Research,** 80-90% of women will be individually responsible for their finances at some point in their lifetime. This means they won't be splitting the bills with a partner.

—On average, women will spend 14.7 years out of the work force to raise a family, care for a parent, etc., which reduces her income-earning years and the accumulation of retirement benefits.***

It's good that women will spend many years in retirement and have the ability to spend time away from work to care for their families. But it's also important to factor this into their saving and investment plans.

Contact your Northwestern Mutual Financial Network Representative(1) for additional guidance and financial knowledge. Be sure to ask your Representative about what you can do to overcome the challenges mentioned above. Talk about your comfort level with high risk and more stable investment options. Set realistic goals and a timeline, and discuss how you can meet those objectives. Remember that investing is a long-term process and it's important to review your goals annually, as they may change over time.