Where they are investing and how they can maximize returns

Women investors are stepping up their game, gaining confidence and taking some more risks. Yet they still lag their male counterparts when it comes to the amount of money they are putting to work in the market.

But women are expected to see an influx of wealth as part of what is being coined the “Great Wealth Transfer.”

Cerulli Associates anticipates $105 trillion in wealth will be passed down to heirs through 2048, with about $54 trillion of that inheritance going to spouses. Women, on average, live nearly 6 years longer than men, according to the Centers for Disease Control and Prevention. That makes them more likely to be the prime recipients of that wealth.

“We’re about to see this massive change in terms of who is going to control wealth,” said Stephanie Link, chief investment strategist and portfolio manager at wealth management firm Hightower Advisors.

Women commanded $18 trillion of investable assets in the United States in 2023, representing 34% of the assets under management, according to McKinsey & Company. That figure is expected to nearly double to $34 trillion by 2030, or about 38% of total U.S. assets, the consulting firm found.

While the transfer of wealth is one way to narrow the gender investing gap, women are still earning less than men in the workplace. Women employed full time in the United States are typically paid 81 cents to every dollar paid to men, according to the National Women’s Law Center.

That has led to a gap in retirement savings, said Veronica Willis, global investment strategist at Wells Fargo Investment Institute. Willis co-authored the firm’s 2025 “Women and Investing” report.

“We have seen some signs that the gap is starting to close, but there is still some work to do,” she said.

Women are more likely to describe their investing approach as conservative, according to Wells Fargo’s research.

Link said she sees that with her female clients, who aren’t focused on the beating the S&P 500 and instead want to preserve the wealth they have.

“We’ve seen an improvement in terms of those that are getting more sophisticated, but we have a long, long way to go,” Link added.

In fact, women are leaning a little less conservative these days and are actually taking a bit more risk, Willis said. They are also gaining confidence in their ability to invest, she noted.

Some 71% of women said they invested in the stock market in 2024, up from 60% the year prior, according to a survey by Wells Fargo. Gen Z and millennials led the way.

In fact, the firm’s analysis found that the performance of single female and female-led accounts over a seven-year period were similar to that of single male and male-led accounts. However, the female-led accounts had the highest risk-adjusted returns, Willis said.

“Women tend to be less likely to check those accounts every day, which means that they’re less likely to make as many trades,” she explained. “That willingness to stick to an investment plan … works in the favor of these women.”

Investors should assess their goals to understand how they should be investing, Willis said. Then they should ensure they have the right allocations in their portfolio so their investments grow over time, she noted.

“[Make] sure that you have a good mix of equities, as well as some assets that are going to diversify a little bit of that equity risk,” she said. “[Resist] that urge to fly to safety, be in cash or all fixed income types of assets when it comes to that retirement bucket.”

Shannon Saccocia, chief investment officer at NB Private Wealth, likes to break it down by age groups.

Women should start investing early, with those in their 20s and 30s focusing on discipline to create strong financial habits, she said.

By the time they reach their later 30s and 40s, they should have started to accumulate some wealth, she noted.

“They also, however, should consider incorporating broader financial advice — not just how to allocate their 401(k) and optimizing their savings, but understanding that the working capital generated from working is a meaningful input in their financial equation,” Saccocia said.

That includes issues around workplace compensation and the best ways to diversify equity ownership, she noted.

Later in life, women should be honest about what they want both during and after their lifetimes.

“Who will continue their legacy? How do they think about balancing lifestyle, philanthropy, and generational wealth transfer? These should be clearly articulated as part of the conversation with their advisors,” Saccocia said.

For Hightower’s Link, education is key. Start reading, find an advisor who can help you meet your goals and talk with other women, whether it is over a Mahjong game or in an investing group, she said.

For those who want to start investing, the best advice she got was from her father just after she graduated college in 1992.

“You start very early to invest, and when you’re younger, you can take more risk … you want to have more equity exposure versus fixed income exposure,” she said. “You want to start to dollar cost averaging.”

Dollar cost averaging allows investors to build positions over time and at varying prices. Investors can take a certain amount — even $10, $50, $100 — directly out of their bank account and put it onto an exchange-traded fund that tracks the S&P, she said.

Those who have 401(k)s can have funds directly taken out of their paycheck.

“You’ll never miss it, and over time, you’ll be very thankful and very grateful that you did this, because you’re not going to be able to time the market,” Link said.

An Exclusive Invitation: CNBC Pro Live — Wealth for Women: You’re invited to join us for an exclusive, live, in-person event on May 28 at the NASDAQ MarketSite designed specifically for serious investors who demand more than surface-level market commentary. CNBC Contributors will present a series of “strategy salons” designed to offer personalized, empathetic and actionable financial growth strategies. Attendees will have an opportunity to ask their questions and get answers about how to navigate the changing investment landscape.